Sales of own-label products at British supermarkets have grown at double the speed of branded goods in 2023, data from market researchers NIQ has shown, as customers adjust to soaring prices. Food prices are up more than 19% over the last year, outpacing the broader inflation rate across the whole economy and adding strain to household budgets already stretched by high energy bills and other price increases. The latest data showed value sales of own-label goods grew by 14.1% compared to branded product growth of 7.1%. In the last four weeks, the volume share of own-label sales rose to 63.3% in the fast-moving consumer goods' category, versus 62.1% in 2022. Food retailers have said they expect prices to rise in 2023 overall but with the rate of inflation declining through the year. “Inflation has been a significant drag on shopper spend, so this year, incremental sales are reliant on a short-term boost from well-activated events rather than regular promotional activity," commented Mike Watkins, NIQ’s UK Head of Retailer & Business Insight. Looking at Europe now private labels make up 38% of total FMCG value sales in the EU as shoppers continue to look for deals on everyday groceries. A total of €229 bn (£199 bn) of private labels were made. According to Circana’s latest bi-annual FMCG Demand Signals report, which analysed data from European retailers in UK, France, Italy, Germany, Spain, and Netherlands, showed a strong Q4 2022 market performance despite prices of private labels rising higher than national brands. Source: ESM, NIQ, Circa #smartdiscount #privatelabel #pl #ownbrand #ownlabelproducts #uk #europe #niq #circana #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting

In recent weeks, a number of branches in The Hague, Lelystad, Amsterdam, Purmerend and Hoofddorp, among others, have stopped using the self-checkout. A customer of the Action on the Zeedijk in Hilversum tells RTL News that the self-scanning columns were suddenly no longer there. "I asked an employee why that was and I got the answer that it was decided because there is so much hunting. So I had to get back in line." Self-checkouts have risen in popularity in recent years. In 2019, the Action started testing self-checkouts in a limited number of stores. A year later it was announced that the Action would roll out the cash registers more widely. 'Search for best way' "It is true that shops are stopping self-scanning," an Action spokesperson confirmed to RTL News. But exactly how many there are, Action does not make clear. "We are constantly looking at how we can improve the customer experience, the self-scan is relatively new, especially for Action. We, and our customers, still have to learn from this and by testing it we learn what the best way is." It is therefore possible that the self-scans disappear, but also come back again. We look at what works best for each store. "Different ways are being tested with different technological capabilities." The rise of the self-checkout leads to more stolen products. But the Action spokesperson says that "not so much" is the reason for the removal of the cash registers. Source: RTL News #smartdiscount #action #selfcheckouts #netherlands #3igroup #expansion #growth #stores #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

The fast-growing discounter said it has opened new distribution centers in Blair (Nebraska), Newman (Georgia) and Fort Worth (Texas), with more expansion in the works. Dollar General, which has previously struggled with supply chain issues, on Tuesday announced a major boost to its distribution channels, with the opening of several facilities around the country that add millions of square feet in storage capacity. The Goodlettsville, Tennessee-based discounter opened an 800,000-square-foot facility in Blair, Nebraska that stores both dry goods and refrigerated items. It’s the retailer’s first ground-up, dual distribution center. Construction began on the warehouse in late 2020. Dollar General also said it has boosted distribution center storage capacity by more than 2 million square feet through new regional facilities in Newman, Georgia, and Fort Worth, Texas. The fast-growing retailer, which now operates more than 19,000 stores, also said it invested $45 million in an expansion of its Jonesville, South Carolina, distribution center, which debuted in 2005. A 250,000 square-foot addition to the warehouse was finished this spring. Dollar General also said it plans to build a 170,000-square-foot fresh foods facility in Amsterdam, New York, near an existing distribution center that opened in 2019. Construction on that project is slated to start next year. Construction is currently underway on three previously announced Dollar General distribution centers in North Little Rock, Arkansas; Aurora, Colorado; and Salem, Oregon. “The recent additions to our supply chain network aim to provide greater efficiencies, create additional jobs and drive positive economic impact,” Tony Zuazo, Dollar General’s EVP of global supply chain, said in a statement. “We’re excited to continue growing our distribution center network to further support store growth and to better serve our customers and local communities.” The supply chain investments are designed to boost capacity by about 20%, the retailer previously said. In December, Dollar General reported more than $40 million in unexpected supply chain costs due to inefficiencies in returning shipping containers and costs associated with moving freight within its distribution centers. “While these issues have resulted in a gross margin headwind in the back half of this year, the team has worked hard to move past these delays with the opening of additional storage and warehouse facilities, which have already begun to relieve some of the capacity pressures,” CEO Jeff Owen told analysts at the time, according to a transcript from financial services site Sentieo. “With the opening of both the temporary and permanent facilities, we believe we are well positioned to drive continued improvement as we move ahead, as we better optimize store alignment with distribution centers, lower capacity utilization within our existing footprint and improve the overall flow of goods.” Dollar General executives have said a surge in demand for the retailer’s goods during the early days of the pandemic over-taxed its supply chain. Also impacting its supply chain is the growing complexity of Dollar General’s offering. In 2019, Dollar General announced that it would begin to self-distribute fresh and frozen foods, which the retailer dubbed its DG Fresh initiative. Previously, those items had been supplied by regional distributors. “We continue to be pleased with the cost savings from this initiative and, importantly, the significantly enhanced profitability of our perishables offering,” Owen said at the time. “In addition to capturing cost savings, DG Fresh also aims to increase sales in frozen and refrigerated categories. We are pleased with the performance on this front, including enhanced product offerings in stores and strong performance from our perishables department, which had our strongest rate of comp sales growth during 2022.” Source: Winsight Grocery Business #smartdiscount #dollargeneral #growth #expansion #warehousing #distribution #DC #scm #supplychain #distributioncenters #drc #discount #retail #consulting #discountretail #retailconsulting #discountretailconsulting

Discount Variety Retail Chain MR. D.I.Y.'s (listed XKLS: MRDIY) new store was opened in Parkur Bursa Shopping Centre. MR. D.I.Y. Turkey COO Dilara Neyişçi Çağlı said, "Bursa has a very important place in our growth plans. We made our first store investment in Turkey outside Istanbul in Bursa. We will continue to add value to such an important city in the coming period." The new store opened in Parkur Bursa Shopping Centre became MR. D.I.Y.'s 46th investment in Turkey. MR. D.I.Y. stores offer a wide range of products covering more than 18 thousand options in 10 main categories including home appliances, hardware, electrical & electronics, automobile accessories, stationery, sports equipment, decoration, toys, souvenirs and jewellery & cosmetics. Read more: (+9) MR. D.I.Y. opens second store in Bursa (ortakalan.org) #smartdiscount #mrdiy #turkey #expansion #growth #stores #bursa #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting

MR. DIY Thailand Launches the first official online store (www.mrdiy.co.th), to fully enter the e-commerce market. The do-it-yourself discount store chain aims to fulfill every need of online consumers and strengthen its online marketing strategy by expanding channels to provide convenience for customers nationwide emphasizing ‘The Everyday Store for Everyone’. Source: Mr. DIY #smartdiscount #mrdiy #online #ecommerce #creador #thailand #malaysia #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting

Last week discounter Chesnok (operated by Belarusian market leader Eurotorg) opened a new store in Bryansk (close to the Belarusian border). Customers have access to a large selection of Belarusian and Russian products, from groceries to household chemicals. Earlier, the network opened the fifth and largest discount store in the city of Kaluga with a sales area of 2086 sq. m. The first discount stores of the network are already operating in Smolensk. Source: Подробнее на Retail.ru: #smartdiscount #chesnok #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #eurotorg #belarus #newdiscountformat #retailconsulting #consulting #consultancy

Discount Retail Chain Lidl UK (owned by Schwarz Group) analysis conducted by The Grocer found a basket of everyday items at Lidl cost just £50.27, making it cheaper than competitors even with their discount schemes applied The price of 33 everyday grocery items at Lidl is £19.91 cheaper than at Waitrose Lidl has once again been named cheapest supermarket in The Grocer’s ‘Super Grocer 33’, beating all major supermarkets, including Aldi. The price index, which compares the price of 33 everyday grocery items across the UK’s seven major supermarkets, found Lidl to be £19.91 cheaper than Waitrose, the most expensive retailer. The win comes as Lidl’s fourth accolade, out of five surveys since the Grocer 33’s inception. Lidl also came out cheapest even after other supermarkets’ discount schemes were applied. Overall, the discounter was found to be 10 per cent (£6.17) cheaper than Tesco and still £5.13 cheaper after Clubcard discounts were applied. Similarly, the same products at Sainsburys cost £6.80 more, with no benefit from the supermarket’s Nectar Prices. The accolade also comes despite traditional supermarkets recently announcing an array of price drops, demonstrating that the discounter still offers better value. The Grocer compares prices of items on shopping lists across the nation as part of the monthly analysis fom fresh produce, such as milk and grapes, to deodorant, and branded items including Hovis Bread and Kellogg’s Corn Flakes. Lidl offered the cheapest price on 26 products and exclusively the lowest price for five products across a range of categories, including baby corn at £2.79 (76p cheaper than the most expensive and 4p cheaper than the next cheapest). For the past 14 weeks Lidl has also been cheapest in a weekly price comparison conducted by the Manchester Evening News on essential groceries. CEO of Lidl GB Ryan McDonnell said: “Every week, independent analysis shows we are consistently the UK’s cheapest supermarket. As a result, we are seeing more customers coming through our doors and switching their weekly shop to Lidl from the traditional supermarkets. “We know people switch to us to make savings, but then stay with us when they realise that they’re not having to compromise on quality. Read more: Lidl named UK's cheapest supermarket | Article | Fruitnet

Discount Variety Retail Chain Dealz (owned by Pepco) intend to open its 300th store in Poland, which means a radical acceleration of the company's development. "Our goal is to have over 1,000 stores in the next 4 years, not only in Poland, but also in several countries of Central and Eastern Europe", says Marcin Langowski, Managing Director of Dealz Poland in an interview with Retailnet. 2023 is a breakthrough year for Dealz due to two important circumstances: the company's fifth anniversary and the opening of the bicentennial store. In addition, the first distribution centre was launched this year. Could you talk about important events in the company and summarize five years of the network's activity on the Polish market? As far as this year is concerned, it would be appropriate to start by referring to the external context, which, unfortunately, remains far from ideal and normal. The ongoing war in Ukraine and inflation (with no end in sight) pose a significant challenge for our customers, thus shaping the retail market. Dealz continues to implement its dynamic development strategy, which is already bringing many noticeable and positive effects. For example, in mid-February we opened a new distribution center in Łyszkowice, in the same month we introduced a new version of the store. In the second half of March, after less than five years of presence on the market, we opened our 200th store in Kłodzko. These are visible and concrete elements of our success. I think it is also a great opportunity to thank all employees and my team for their commitment to building our Dealz brand, especially in the context of the 5th anniversary of the opening of the first store. Their contribution is invaluable, and visible in the form of satisfied and returning customers. It is thanks to them that Dealz can continue its dynamic development and increase its popularity. So what are the plans for the development of the network in Poland? First of all, we want to further strengthen integration within the group, taking advantage of its synergy, scale of impact and extensive experience, including m.in Pepco. Both brands have their headquarters in Poznań and we can already see the effects of this synergy, for example in the Property Department, which supports both Pepco and Dealz. This year we intend to open our 300th store in Poland, which means a radical acceleration of the company's development. Our goal is to have over a thousand stores in the next 4 years, not only in Poland, but also in several countries of Central and Eastern Europe. Next year we intend to enter new foreign markets. We are going here in a similar direction to Pepco. It can be said that brands such as Pepco and Dealz are now in high demand due to the changing shopping habits of customers as a result of the pandemic and other problems such as inflation. Customers are now looking for networks that offer good prices, which definitely favours you. Yes, definitely. There is a lot of interest in stores that offer good quality products and brands at affordable prices. This also applies to both Pepco and Dealz. During this period, it is especially attractive for customers who are looking for ways to shop cheaper without sacrificing quality. Of course, some of them also choose their own brands. However, the discount format is very popular both in good times and in difficult economic times. This is also confirmed by our very strong like-for-like result, which proves that customers are looking for bargains and are eager to choose our offer. How long do you estimate this discount format will be successful? Let us remember that the commercial format itself is the result of the evolution of customers' shopping behaviour, but also to a large extent generational changes. It is a concept that has bright prospects, while hypermarkets and larger stores are losing their importance. This only confirms that the direction of development we have chosen is the right one. Customers want to shop close to their place of residence, they are looking for affordable offers, good quality, so the proposals of Dealz and Pepco are the perfect solution. The outlook for the coming years looks very optimistic. The concept of stores like ours will continue to gain popularity and remain the future of commerce. Polish market and development opportunities on it are changing dynamically. There are a lot of retail park and convenience center projects, but fewer or no traditional, large galleries are being built. How do you assess the availability of retail space in terms of the development of the Dealz chain of stores? Currently, Dealz is developing in 3 retail formats, i.e. retail parks, large malls and shopping centers, presence in each of them works very well for us. Of course, the results and profitability of individual stores may vary slightly depending on the location chosen. The market hates a vacuum, so we use locations that are already in the design phase or have been vacated by previous tenants. This allows us to effectively develop our business. The Dealz store is a "traffic driver" in every location. How does your cooperation with retail landlords look like? Landlords are aware of how strong Dealz's commercial offer is, how strong Pepco's offer is. These two brands generate very high customer traffic in shopping centers. We work as a group, so we no longer distinguish between those with the Dealz brand and Pepco. Our real estate team is tasked with leasing larger retail spaces for both brands, rather than separately for each brand. In this respect, the relationship and operation in certain commercial locations between Pepco and Dealz is strictly defined. Help from Pepco is very useful, especially where the Dealz store is not yet present, but Pepco is already there. We have a greater possibility of locating the second brand here. When asking about tenant-landlord relations, it is impossible not to notice that the position of the Dealz brand has recently grown significantly. I have the impression that in the past you were not a very desirable tenant, especially in shopping centers where premium or fashion brands were the focus. Dealz and Pepco appeared primarily in retail parks. Those times are long behind us. Awareness of both brands is currently very high. Both Dealz and Pepco are very desirable brands by customers and landlords. In addition, the new store concept is more modern, which translates into greater customer traffic, thanks to which we are much more attractive to landlords, including large shopping centers. What is the most important for you when signing a lease agreement? Under what conditions would Pepco and Dealz like to sign lease agreements? Of course, the decisive factors here are costs and location, which are key factors in our development. Lower rental costs translate directly into lower prices for the customer, and lower prices generate "traffic". This is a very simple mechanism. The Dealz chain has recently presented a new visual concept of its stores. The changes include, among others, new branding, navigation and communication in stores, as well as new product lines. How will the stores change and what is the schedule of this rebranding? The first new look was the Dealz store operating in Galeria Pestka in Poznań. The new concept can also be admired, m.in in Zamość, Kłodzko, Gorzów Wielkopolski and in all newly opened Dealz stores, which is natural and obvious. The rollout of the remaining facilities will take place in the first half of next year. Currently, we do not see the need to change the format or area of stores. We focus on developing product categories that are already strong at Dealz. We will also further strengthen the offer of articles for everyday use and introduce a greater choice of convenience assortment. This year, the first Dealz distribution centre was launched. This is certainly an element of supply chain optimization, but is it also the first step to launch online sales? As of today, Dealz has no plans to implement online sales. The distribution center will serve all stores of the chain. Optimization consisted in building a warehouse that would meet our needs and would be adapted to the specifics of the product. Its location in central Poland allows us to optimize transport costs and shorten the average distance to stores. On the other hand, the introduction of new processes in the warehouse increases its operational efficiency. Finally, I would like to ask you about the biggest challenges that Dealz is currently facing Last year, we all felt the limitations and difficulties of the Covid-19 pandemic, when suddenly even greater challenges arose. The war in Ukraine, the lack of availability of components, the energy and inflation crisis, the tightening of the belt by customers, delays in investments, all this had a negative impact on the market situation, the effects of which we as companies and society feel to this day. Nevertheless, Dealz has coped with these challenges very well, adapting its commercial strategy, logistics and purchasing to a dynamically changing environment. Last year, the like-for-like result was very strong, and this year we expect double-digit growth, and we are on track to achieve this goal. Our policy, strategy and execution are at a very good level and allow us to deal with difficulties. Read more: [INTERVIEW] Marcin Langowski, Dealz Poland: Our goal is to have over a thousand stores in the next 4 years – SCF News Retailnet

Discount Variety Retail Chain Dollar General (listed NYSE: DG) is trying attract shoppers beyond its core low income consumers. Dollar General is trying very hard to be taken seriously as a place where consumers regularly buy their groceries. It recently opened a 85,000 square foot distribution center in Blair, Neb., that will help supply its stores with fresh food. The company also has plans to build a similar but much larger facility, 185,000 square feet, in Amsterdam, N.Y. The distribution centers are part of a massive effort by Dollar General called DG Fresh to transform its supply chain into one in which it can self distribute fresh and refrigerated products. By contrast, rivals like Target Corporation rely on third party wholesalers to manage such inventory. Building a supply chain that can reliably handle perishable items is a tall order. But Dollar General has yet to show it can consistently manage its inventory. Supply Chain Woes Like many retailers, the company struggled to supply its stores during the covid-19 pandemic. Much of the industry has since recovered, except Dollar General. The company admitted that it botched its supply chain for a good deal of last year, which resulted in “significant impact to our operating results.” “In the second half of 2022, we experienced a temporary shortage of available warehouse capacity, primarily due to delays in opening temporary warehouse space,” the retailer said in its annual report. “This shortage resulted in a significant impact to our operating results due to increased costs associated with delays in unloading inventory into warehouse space, as well as inefficiencies in moving goods throughout our internal supply chain,” the filing said. Too Much Going On? Part of the problem is that Dollar General has a lot going on despite claims in its annual report that it operates “a relatively simple business model.” The company is rapidly expanding. On top of the $1.6 billion in capital investments last year, Dollar General plans to spend another $1.8 billion to $1.9 billion on 3,170 real estate projects in 2023, including 1,050 new store openings, 2,000 remodels, and 120 store relocations. The company just opened its first international store in Mexico. And despite its moniker, Dollar General is aggressively expanding its merchandise mix to attract consumers from all income groups, not just its core group of bargain shoppers. The retailer has been rolling out its new pOpshelf formats that contain “treasure hunts” of unexpected products including home furnishings and arts and crafts. And then there’s DG Fresh “Going forward, we expect to realize additional benefits from DG Fresh as we continue to optimize our network, further leverage our scale, deliver an even wider product selection and build on our multi year track record of growth in cooler doors and associated sales,” CEO Jeff Owen recently told analysts. “We continue to believe that DG Fresh provides a potential path forward to expanding our produce offering to more than 10,000 stores over time,” he said. On top of all of that, president and CFO John Garratt, a respected veteran, is retiring. Some analysts have questioned the company’s furious pace of activity. “Last couple of quarters, (Dollar General) had some missteps that haven’t gone to plan,” Simeon Gutman, an analyst with Morgan Stanley, said during a recent conference call. “Not all of that I think is clear to us or The Street,” Simeon said. “And yet all these growth initiatives are still happening at the same time. So the open-ended question is have you debated balancing growth” against the core business? Owen said he was confident Dollar General will fix its execution problems. “What we do here at Dollar General is we control what we can control, and that has allowed us to emerge even stronger as we move forward,” he said. “So as I think about our balance between execution and innovation, one of the things I think it’s important to remember is we have a long track record of execution, and this team will continue to deliver on that.” Read more: Dollar General Makes Big Move to Challenge Target and Walmart - TheStreet

Discount Retail Chain Lidl UK (owned by the German Schwarz Group) could snap up a share of profits made from Tesco’s Clubcard scheme as a result of copying Lidl’s logo, London’s High Court heard this week. The German-owned grocer sued the UK’s biggest retailer back in 2020 shortly after Tesco adopted a yellow circle against a blue background to promote its Clubcard Prices discount scheme. In February, the two retailers traded allegations of copying brands and deceiving customers but Lidl won the case last month, with a judge ruling Tesco had “taken unfair advantage of the distinctive reputation” for low prices held by Lidl’s trademarks. Tesco was refused permission to bring an appeal against that decision at a brief hearing on Monday, but it can apply directly to the Court of Appeal, Reuters reported. Tesco lawyers said it could be impossible to establish how much profit may be linked to the use of Lidl’s logo for the Clubcard scheme, but Lidl’s legal team said it could be huge. Lawyer Benet Brandreth said in court filings: “Tesco is responsible for around a quarter of the UK’s entire supermarket share and Lidl for approximately 7%. “Over three years that amounts to many millions of customers and billions of pounds of turnover and profit. If even a fractional percentage of that trade is attributable to the infringement, the resulting sums are huge.” Lidl is seeking financial disclosure from Tesco, including revenue and operating profit for Tesco as a whole and from Clubcard holders to calculate what profit Tesco may have made from infringing its trademark. Both businesses agreed to try and resolve the issue of disclosure, after which Lidl must decide whether to seek damages or an account of profits made by Tesco. Lidl has also asked for an injunction to prevent Tesco from infringing its trademark. Both sides agree any steps to remove Clubcard Prices logos from Tesco stores should be put on hold pending any appeal. Read more: Lidl could take slice of Tesco's Clubcard profits after logo lawsuit win - Retail Gazette

Discount Retail Chain Lidl's owner, the German Schwarz Group, have successfully completed the 2022 financial year and, with over 575,000 employees across all business units, generated sales of 154.1 billion euros (sales increase: 15.4 percent). Despite inflation and higher interest rates, the companies of the Schwarz Group thus achieved stable annual financial statements. Cost increases for merchandise, raw materials, energy and transport were partially offset by efficient process management and were not passed on to customers in full. Furthermore, it was possible to win new customers through high availability of goods, attractive prices and innovative product range design. The number of stores increased by 400 to around 13,700. At Lidl and Kaufland are ringing the cash registers.... Supermarket Kaufland achieved an increase in store sales of 16.1 percent to 31.8 billion euros, including the integrated real stores, while discounter Lidl increased sales by 13.8 percent to 114.8 billion euros. Total online sales amounted to 1.9 billion euros, up 0.2 billion euros (8.5 percent) year-on-year. The environmental business division PreZero increased its sales 1.7 billion euros (84.7 percent) year-on-year to 3.9 billion euros, partly due to the acquisitions made in this financial year. The manufacturing companies of the Schwarz Group, "Schwarz Produktion GmbH", delivered private label foods items worth around 3.4 billion euros to Lidl and Kaufland at internal transfer prices. This corresponds to an increase of 29.7 percent compared to the previous year. This also includes the sales of the pasta factory acquired in October 2022 and the newly built digital coffee factory. Schwarz Group: Investments of around 8 billion euros With investments of around 8 billion euros, the brick-and-mortar business was strengthened and strategic projects and digital business areas were driven forward. This included, among other things, the expansion of Schwarz production. The main focus of activities was on securing supply chains as well as expanding and modernizing branches. In addition, investments in digital infrastructure and IT security have further developed key innovation drivers. The balance sheet date is February 28, 2023. The aggregated total turnover includes all sales under commercial law. Read more: Schwarz Gruppe (Lidl & Kaufland) macht über 150.0 Mrd.€ Umsatz!!! - Supermarkt Inside (supermarkt-inside.de)

Discount Retail Chain BİM Birleşik Mağazalar A.Ş. (listed BIST: BIMAS) ranked first in the Food/Kitchen category at the B2B Excellence Awards. The marketing research, which was conducted with 2,800 businesses from 20 sectors in 12 provinces with the cooperation of Marketing Turkey and Quantum Research is evaluated with the expertise of Deloitte Turkey. The research measures the reputation of brands before their business partners and creates the B2B Excellence index. BIM is market leading grocery retailer in Turkey. Read more: (+9) Reputable Business Partner of the Year award to BIM (ortakalan.org)