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- Germany: Lidl and Aldi drastically reduce pasta price
Discount Retail Chains Aldi and Lidl Germany are currently outbidding each other when it comes to lowering the price of basic items to the delight of consumers. After the prices for fruit, vegetables, cheese and butter have already fallen, pasta is now hit. Inflation and a shortage of raw materials fuelled the ongoing upward spiral in supermarket prices, according to data from the Federal Statistical Office, food prices have risen by around 20 percent compared to the previous year. The inflation rate is increasingly weakening. Aldi, Lidl and Kaufland (both owned by the German Schwarz Group) simultaneously lowered the prices of their own private label brands from May 8th from to 99 cents to 79 cents. As the Lebensmittelzeitung reports, cheese suddenly became cheap at Lidl and Kaufland at the end of April. One crucial difference: Lidl and Kaufland, both trading subsidiaries of the Schwarz Group, went it alone and reduced the prices of selected cheese products by around 18 percent. Aldi did not follow suit until days later. But the tide should turn with the next price reductions: Not only the pasta in the cheapest price segment became cheaper, Aldi also reduced the spaghetti price of its own organic brand "Gut Bio" by 36 percent. Lidl and Kaufland (both sourcing parts of their pasta assortment directly from the Schwarz Production GmbH owned vertically integrated German based pasta factories) justified the price reductions with the recovered raw material prices. In addition, there are signs of a price war between discounters and their direct competitor Aldi. This recently fuelled the competition for price leadership with the introduction of a new, low-cost own brand. The large supermarket chains à la Edeka and Co. could also come under pressure from falling discounter prices. In addition to supermarket rivals, such price reductions are also causing problems for farmers and farmers. The German broadcaster MDR reported that dairy farmers in particular are angry about the benefits. Among other things, rising energy prices are currently causing production costs to skyrocket, but prices in supermarkets are falling. While farmers received 60 cents per litre of milk last November, it was only about 45 cents in March, according to MDR. Read more: Kaufland, Lidl und Aldi senken Nudel-Preise drastisch (msn.com) #smartdiscount #aldi #lidl #inflation #pricewar #pricing #strategy #growth #pasta #milk #dairy #farmers #verticalintegration #schwarzproduktion #germany #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting
- Turkey: Şok increased its net sales revenues in the Q1
Discount Retail Chain Şok Marketler's (listed TYR: SOKM) first quarter net sales revenues increased by 103.6 per cent to TL 20.8 billion compared to the same period last year. Şok Marketler announced its financial results for the first three months of 2023 to the Public Disclosure Platform (KAP). Accordingly, the company's first quarter net sales revenues increased by 103.6% compared to the same period last year and reached 20.8 billion TL, while the number of employees exceeded 46,000 and the number of stores reached 10,214. Commenting on the first quarter financial results, Uğur Demirel, CEO of Şok Marketler, said: "After the earthquake disasters we experienced, we continue our contribution to the economy and employment without slowing down. We have assumed an important responsibility in this regard by prioritising the people of the region in recruitment. In the coming period, we will continue to provide uninterrupted service to all our customers in 81 provinces of our country, open new stores and increase our investment and employment." Read more: Şok Marketler Investor Relations - Annual Reports (sokmarketyatirimciiliskileri.com) #smartdiscount #sok #turkey #expansion #growth #q1 #revenue #sales #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting
- Netherlands: Aldi Nord tests self-scanning and self-checkout with Shopreme
Aldi Netherlands (German family owned) will open a first store this week offering shoppers the option to scan their purchases with their smartphone or at a self-checkout. Not only the software, but also the hardware for the self-checkouts will be provided by Austrian specialist Shopreme. In the store in the village Berkel-Enschot near Tilburg in the Netherlands, which will be reopened this week after renovation, it will be possible to see for the first time what the discounter’s world of self-scanning could look like in the future throughout Europe. However, as with the scanless store in Utrecht, this was only a test for the time being, explains Aldi Nord Media Spokesman Dennis Boczek in response to an enquiry from Retail Optimiser. “In addition to Aldi Shop & Go, a checkout-less technology being tested in Utrecht, Aldi Netherlands is also testing Aldi Scan&Go, which combines a self-scanning solution via app and a self-checkout terminal into a seamless technology,” explains Dennis Boszek: “Both tests in the Netherlands contribute to gain the most comprehensive picture possible of the use of checkout technologies in our stores and to evaluate possible use cases for future checkout solutions not only in the Netherlands but for the entire Aldi Nord group of companies.” For the first time in the retail industry worldwide, self-checkout hardware from Shopreme will be used in the Aldi Nord store in Berkel-Enschot. The Austrian specialists will officially launch the hardware product to the industry next week. Together with its shareholder Umdasch, Shopreme has developed and produced the hardware solution in order to be able to offer retail companies an integrated solution for self-scanning with payment at the self-checkout plus optional scanning at the self-service checkout from a single source. Shopreme also delivers self-checkout hardware In this Dutch Aldi Nord store, customers have to use the discounter’s app to be able to scan the goods with their smartphone. Shopreme, which also counts Rewe Group including its discounter Penny among its major customers, has made a name for itself in the market with the fact that its self-scanning solution also runs without an app on the smartphone’s browser. However, this will not be used by Aldi Nord for the time being. Instead, customers can do without a printed receipt when paying at the self-checkout and receive it digitally in the app. In the store in Berkel-Enschot, customers will have the choice: They can scan the goods with their smartphone or at the new self-checkouts. Self-scanning users can pay either in the app or cashless at the self-checkout. Independently of this, the usual manned checkouts will also be available to customers. Read more: Aldi Nord tests self-scanning and self-checkout with Shopreme - Retail Optimiser (retail-optimiser.de) #smartdiscount #aldi #netherlands #selfcheckout #test #village #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #shopreme #shopngos #selfscan
- Germany: Aldi Süd continues to promote regional agriculture and focuses on German strawberries
Discount Retail Chain Aldi Süd Germany (German family owned) has only been buying German asparagus in the season, now the discounter is expanding its commitment to regional agriculture and is also seasonally relying on German strawberries. Aldi Süd will only trade fruit of German origin during the German strawberry season, thus siding with regional farmers. Farmers welcome this development: "This is an important step for us farmers. The decision gives us planning security and strengthens our backs as regional producers," says Uli Bonn, a farmer from Pulheim. The Association of South German Asparagus and Strawberry Farmers (VSSE) also supports the decision: "Aldi Süd's decision shows a high level of appreciation for domestic strawberry cultivation. We hope that other retailers will follow this example to further strengthen regional agriculture," says Simon Schumacher, Managing Director of VSSE. The fresh German strawberries are offered in plastic-free, open cardboard trays. Under its own brand "Best from the region", Aldi Süd also presents strawberry growers on the product packaging. This way, customers know where their fresh strawberries come from, what path they have taken and can look forward to a product from their region. The discounter has been relying on regional products for some time: Aldi Süd offers more than 350 products throughout the year and across the regions, which are marked with the regional window. This provides information about where a product comes from and where it has been processed. For the first time, Aldi Süd is launching a comedy mockumentary in collaboration with Accenture Song. With "Gut Stich!", the discounter tells of the annual asparagus craze in Germany. The five-minute comedy mockumentary has been available on YouTube, Instagram and TikTok since May 8. The mockumentary is about getting to the bottom of the asparagus hype. The focus is on the epicenter of the asparagus cult, the fictional village of "St. Asparagus". There, various people are accompanied in their everyday lives and interviewed about their special relationship with asparagus. Among them are a former asparagus queen, an abstinent asparagus addict, an influencer who wants to go viral with her asparagus content, and a financial guru who sells the "white gold" as the ultimate investment. Read more: Aldi Süd continues to promote regional agriculture and focuses on German strawberries | agrarwelt.com #smartdiscount #germany #aldi #regional #fruit #sustainable #strawberry #price #local #supply #farmer #vsse #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting
- Denmark: Lidl will remove all tobacco products from shelves by 2029
Discount Retail Chain Lidl Denmark (owned by the German Schwarz Group) will be the first grocery chain in Denmark, Lidl will phase out tobacco products. Sales will stop by the end of 2028. By the end of 2028 at the latest, it will no longer be possible to buy tobacco products in Lidl's 139 stores in Denmark. Already during the summer, Lidl will remove 20 percent of cigarettes from shelves, while a new tobacco-free store will open Thursday in Hjørring. Khalil Jehya Taleb, Vice Purchasing Director at Lidl Denmark, believes that the chain has a great responsibility towards the individual consumer. "It has to be done in the right way, and that's why we've chosen to phase it out over a period of five years," he said. "We hope customers will respond positively to the initiative and will choose Lidl based on our other food products. Lidl is a partner in "Smoke-Free Future", which is a collaboration between TrygFonden and the Danish Cancer Society with a vision to make Denmark smoke-free. For this reason, the chain has decided that it is the right measure to support the project and contribute to a "good agenda". The deputy purchasing director would not put a figure on how much revenue the discount chain will miss out on. He hopes the initiative spreads to Lidl's competitors. "There is no doubt that we will lose revenue. But it is more important that we support the Danish Cancer Society's agenda of a smoke-free generation", he says. "If our colleagues in the industry are interested in a faster phase-out, we will also look into it." Niels Them Kjær, project manager for tobacco prevention at the Danish Cancer Society, is confident that the initiative can boost solutions that reduce the number of smokers. "This is a big step and may one day lead to a definitive stop to the sale of tobacco and nicotine," he said. "It will only really have an effect if it spreads to more chains." Since January last year, a cigarette pack has cost around 60 kroner. At the same time, tobacco must not be visible on the shelves, and no more colourful packages. But it does not appear that legislation in this area has caused many more people to give up tobacco. According to the study "Danes' smoking habits 2022", prepared by the National Institute of Public Health, almost every fifth Dane smokes. Niels Them Kjær therefore looks at Lidl's initiative with great pleasure. "It opens up completely new opportunities for tobacco prevention, and it means that fewer children and young people start smoking. At the same time, it will be easier for those who try to quit, he believes. Lidl Netherlands has previously put an end to the sale of tobacco. The measure spread to large parts of the country, and from next year Dutch supermarkets will not be allowed to sell tobacco products. The project manager hopes that the same will happen in Denmark. "It might be a bit of a wild dream. But with the experience we have from the Netherlands, I think it could be a wave that spreads," he says. Lidl expects to open more than 60 new stores in Denmark in the coming years. All new stores will be tobacco-free. Read more: Lidl will remove all tobacco products from shelves by 2029 | BT Society - www.bt.dk #smartdiscount #lidl #denmark #netherlands #tobacco #ban #sales #sustainable #health #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting
- Spain: Aldi adds more than 1 million new customers and targets 50 store openings this year
Data from research agency Kantar shows that Aldi was the supermarket chain that has seen the highest growth in Spain during 2022, adding 1.05 million new customers from March 2022 to March 2023. Aldi also increased its penetration rate by 5.4%, the highest growth in the sector, with 36.5% of Spanish households now shopping at Aldi. The main pulling points for Aldi customers are the proximity of stores (25%), the good value-for-money of its products (23%) and low prices (21%), Kantar's study found. Store openings Aldi has opened ten new stores in Spain since the start of 2023, with two new openings planned in Madrid and the Balearic Islands. In the period from January to April, the discounter opened new outlets in Alzira, Andalusia, Catalonia, Madrid, Galicia, the Balearic Islands and the Canary Islands. With the opening in Alzira, Aldi has opened three new stores in the Valencia region in less than a month, taking its total in the Valencian Community to 67 supermarkets. Store Target During 2023, Aldi Spain, which is part of Aldi Nord, plans to open close to 50 new stores nationwide, including its entry into Melilla for the first time, as well as new openings in Galicia, the Balearic Islands, the Canary Islands and Asturias. At the same time, Aldi will continue to strengthen its presence in key regions such as Madrid, Andalusia, Valencia and Catalonia, which will account for almost half of the openings planned for this year. Aldi offers nearly 2,000 SKUs in Spain, 86% of which are private label and 80% of which are of Spanish origin..... Source: Kantar
- UK: Despite legal challenges Aldi don't want to change its copycat private-label strategy
UK: Aldi UK’s CEO has said that the retailer will continue to "benchmark" leading brands in the development of its private-label products, The Grocer reported. Aldi's comments follow on from the discounter facing numerous legal challenges over design infringement, most notably from Marks & Spencer. Aldi will continue to offer alternatives to market-leading products at a reduced price. “I don’t think there’s anything we need to avoid," Aldi's UK CEO, Hurley, told the publication. “Sometimes it’s big brands, sometimes it’s exclusive own-label products. We’re most focused on what our customers want, not what other retailers say.” Growing its store portfolio By 2025, Aldi UK aims to have a total of 1,200 stores. In 2022, the company invested £700 million (€788.1 million) and is planning to invest £600 million (€675.5 million) in 2023. In February, the discounter said that it plans to expand its store estate in London by almost doubling its current 60 stores. Despite the high demand, Aldi is underrepresented in the capital, which is partly due to the scarcity of suitable sites. To address this issue, Aldi UK is providing property agents with a finder's fee of either 1.5% of the freehold price or 10% of the first year's rent for leasehold sites to assist them in identifying potential sites that were previously unknown. Source: The Grocer, ESM
- Italy: all new MD discount stores to use high energy saving chillers
Italian discounter MD decides to use Honeywell’s energy-efficient Solstice refrigerators. The new chillers will drive MD's carbon neutrality targets, reducing energy bills and reducing the operating costs in general. Michele Aiello, Technical Director of MD commented, "MD is committed to using solutions that support our energy-efficiency and sustainability initiatives, which currently include refrigeration control through remote electricity monitoring systems as well as the use of refrigerated trucks powered by clean energy. "We are now engaging with Honeywell to further our work in this area and implement Solstice L40X in our new San Giovanni in Persiceto store, which is projected to support a lifetime cost saving of approximately €260,000 and 25% lower lifetime emissions compared with carbon dioxide for that store alone. Selecting HFO solutions like Solstice L40X is critical for us, as we continue to grow our food retail chain and focus on making choices that are better for the environment." Honeywell has invested more than $1 billion (€900 million) in research, development and new capacity for its Solstice technology, having anticipated the need for lower-GWP solutions to combat climate change more than a decade ago. Source: ESM
- Russia: Magnit opens first B1 discount store in Moscow
Since February the largest European retail chain, Magnit, runs 2 discount concepts, My Price and B1. The latter shows a bit more features of a hard discount model. Now they opened their first B1 store in Moscow, at Izmaillovskoye prospect. The store covers 350 m2 and also has its own bakery. The assortment of the discount store includes about 1,000 items of food and non-food products that cover basic consumer needs, including fresh vegetables and fruits. The store presents weight products, which account for more than 10% of the assortment structure (cereals, pasta, sweets, berries, frozen fish and seafood). The share of fresh food products accounts for more than a third of the assortment. Pallet and box display of goods allows you to instantly place products on the trading floor, bypassing the storage stage in the store after delivery. For the convenience of customers, the outlet is equipped with self-service checkouts in addition to the usual cash registers. Magnit launched the hard discounter format in February 2023. Currently, the B1 chain of stores unites ten outlets: one in Moscow, the rest in different cities of the Moscow region. Magnit tests various store configurations and types of locations to form an optimal model of a hard discounter, and then will decide on scaling the format. A key feature of the format is low prices, which are achieved through deep optimization of operational processes in stores and logistics. Source: Retail.ru, DRC #smartdiscount #b1 #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #myprice #magnit #newdiscountformat #retailconsulting #consulting #consultancy
- Russia: Magnit launches its second discount concept B1
Russian largest retail chain Magnit (owned by Marathon Group and list on MCX: MGNT, LSE: MGNT) launches its second discount format B1. The first three pilot stores were opened in Stupino, Elektrostal and Tuchkovo in Moscow region. For this new discount project, Magnit appointed Anzhela Ryabova who has a wide spread retail experience where off discount retail at the Siberian-based store chain Baton (part of Krasny Yar). The new format B1 will strengthen the presence of Magnit in the segment of discounters, where Magnit is represented from 2020 by the soft-discount proximity small size concept "My Price", and will allow to cover even more consumer missions. B1 are stores with a focus on a limited quality assortment at attractive prices, covering the basic needs of the consumer. The new discount format is close to the classic discount concept and is aimed at consumers who do not accept compromises in quality, but strive for rational purchases. The range of B1 with 1,000 SKU is narrower than the soft discounters "My Price" (average of 2,500 SKUs), and own brands (private labels) in the future will occupy about 50% of the B1`s product offer. B1 will adhere the EDLP (every day low prices) pricing strategy. But the basis of the assortment of the discount format will be products of the middle price segment with a small share of goods of the "first price". Due to a deeper optimization of operational processes in stores and logistics, prices in B1 will be lower than in "My Price" and in "Magnit" stores. In the B1 assortment emphasis is placed on offering high-quality fresh categories, as well as fruits and vegetables. Another key category of the new format is fresh pastries: in B1 stores there will be bakeries for the production of fresh bread, buns and pies. Another distinctive feature of B1 will be a wide offer of weight goods such as cereals, confectionery, frozen foods, seafood, etc. At the same time, a significant proportion of goods in B1 will be presented in large packages, which will also help customers optimize their spending. The store area of B1 stores will be 330 - 400 sqm. Only pallet and boxed goods are presented, which requires additional merchandising space. In addition, the B1 layout provides wide aisles for the convenience of buyers, fast shopping and store productivity. Another element of B1 will be the use of modern technologies in stores, such as self-service cash registers. It will test the so-called "cold rooms", separate rooms with a special temperature regime for chilled products (meat, fish, salads, dairy products). Cold rooms will allow B1 to reduce operating costs, as well as the time of personnel for laying out goods. B1 is managed by Angela Ryabova, who joined Magnit in November 2022. Before that Ryabova headed the Krasny Yar group of companies, developing the Baton discounter successfully. In the future, B1 will set-up a separate logistics, maximally adapted to the needs of the format in terms of speed and cost of operations. It is assumed that the first own B1 distribution center will be opened in the fourth quarter of 2023. In the near future, Magnit will open up to 15 pilot B1 stores in different configurations and types of locations in different cities of the Moscow region to test several hypotheses, operating models and business processes. After that, the company will form the optimal model of the hard discounter and will decide on scaling the format, supported by DRC. "Discounters remain one of the fastest growing segments of the market and retain high potential for further development. We want to create a standard of "high-quality" hard discounters on the Russian market, a format that is very poorly represented in our country. Our hard discounter is a store for modern consumers who rationally approach their budget and time, but are not ready to sacrifice the quality of life," says Angela Ryabova, Director of B1. Magnit is presented in all grocery retail formats covering basic consumer missions. The company develops a network of convenience stores for frequent purchases of basic basket goods, large-format stores (supermarkets and superstores) with a wider range for future purchases, drug stores for purchases of non-food products. The new B1 format is focused on purchasing a basic food basket for a few days and daily purchases of fresh goods, while "My Price" covers the wider needs for daily purchases of basic goods on a smaller space. In 2022, Magnit expanded its network of soft discounters to 700 stores and in 2023 it will continue to expand this format. Source: retail.ru #b1 #myprice #magnit #newdiscountformat #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy
- Germany: BrewDog and Aldi brew private label Hop Fiction beer
Discount Retail Chain Aldi Süd Germany (German family owned)and the experimental beer brand BrewDog are continuing their successful partnership in Germany. After four successful joint campaigns in the past two years, there will also be a joint, exclusively brewed beer in 2023. Hop Fiction, a tropical fruity, light beer, will find its way onto the shelves of over 2,000 Aldi Süd stores in April. Fruity Pale Ale for the warm season BrewDog has brewed a clear pale ale in Berlin with notes of pineapple, mango and passion fruit combined with citrus notes. A fine pine note rounds off the taste experience, the light malt character corresponds with a pleasant bitterness. Hop Fiction not only scores with its outstanding taste, BrewDog and Aldi Süd have also come up with something special for the own private label design: the pink tin with yellow accents and distinctive shadow lettering catches the eye. "We at BrewDog are pleased to continue our successful partnership with Aldi South and to build on the success of our ALD IPA collaboration," says Martin Balke, Head of Sales BrewDog Germany, who initiated the collaboration. "After last year's Hazy IPA, we are providing the necessary variety with a Pale Ale." "With Hop Fiction, we can offer our customers a super fruity beer for spring and summer. It combines the perfect entry point for a Pale Ale with very distinct, taste characteristics of this beer style. The can design is a tribute to this beer," adds BrewDog Germany CEO Adrian Klie. Back in March 2021 and September 2022, BrewDog and Aldi Süd launched a joint beer on supermarket shelves with ALDI IPA. Hop Fiction is brewed exclusively for Aldi Süd, where it will be available as an exclusive item for six months from May 2023. It comes in a 0.33 liter can and is available now. About BrewDog BrewDog was founded in 2007 when two men and a dog set out on a mission to revolutionize the beer world. Tired of the uninspiring beer scene in the UK, the two founders, Martin Dickie and James Watt, started brewing their own beer as homebrewers and getting their friends as excited about beer as they are. Today, BrewDog is the market leader in craft beer and one of the fastest growing companies in the UK. BrewDogs Punk IPA is the number 1 craft beer in the UK and Europe. Since 2020, BrewDog has been brewing the complete headliner range for Germany, Punk IPA, Pale Ale, Elvis Juice, Kiezkeule and Lost Lager, as well as many special bottlings for the German and international market at the brewery in Berlin-Mariendorf. BrewDog now exports beers to over 60 countries and operates over 100 bars worldwide as well as breweries in Ellon (Scotland), Columbus, Ohio (USA), Berlin and Brisbane (Australia). BrewDog has been Co2 negative since 2020. This means that the company removes twice as much CO2 from the atmosphere as it emits its. Read more: BrewDog and ALDI SÜD brew Hop Fiction - about-drinks.com #smartdiscount #aldi #germany #brewdog #beer #privatelabel #ownlabel #IPA #design #development #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting
- South-Africa: Don’t underestimate discount low-cost retail in South Africa
Discount Retail Chains like Boxer, QualiSave to Cambridge Food stores enable consumers to ‘buy two’, ‘buy three’, even ‘buy more’, to ‘shop now and save’. These retailers are often structured to provide goods to people through divisions that sell a broad range of products, from basic household goods and groceries to house-building goods. This retail category has spending power in and through what is called the kasi economy, which is said to be in the region of hundreds of billions of rands. Discounters have a significant footprint in townships. And as major contributors to this market, they are a lifeline for almost half of South Africa’s urban population, particularly as so many people battle unemployment and low household income. This is seen in both the consistent thrum of sales volumes and non-stop foot traffic through these stores. These shops are integral to the future growth of this critical economy. Consider the traction shown by established kasi brands, such as Boxer, which towards the end of 2022 opened its 400th store. Many of these spaces are also synonymous with routine and comfort for many people as they shop for supplies after a long week of very early mornings and equally late nights, travelling between work and home. The community roots of these trusted supply stops is clear from a comment by Boxer Hebron Mall Store Manager Keamogetswe Mashaba who said, “We’re the community champion. We offer an ‘all under one roof’ service underpinned by a deep passion to be part of, and grow, our community.” One of the strongest foundations of the kasi market is that it is a cash-based economy in a shaky credit-based financial sector. Another key trend and buying behaviour to note when it comes to this retail segment is highlighted in the 2022 Township CX Report. The study found that township residents put convenience first and foremost, strategically planning their shopping trips due to limited access to transport and associated costs. This is important to keep in mind in terms of the harsh reality that at the bottom of the pyramid (BOP) in South Africa, an average of five to eight people can occupy one room in a house. As such, price over personal choice remains the ultimate decision maker for the majority of consumers in the current context of shoestring budgets. This point is unpacked in statistics from the Department of Employment and Labour that pinpoint the country’s minimum wage, averaging R21.41/hour between 2019 and 2022. The heavy reliance on the informal sector for jobs, linked to this exceptionally low rate, makes for meagre household budgets that need to provide for many people. Comparatively, the September 2022 report by Stats SA confirmed that the average salary in South Africa was R24,574, which also impacts trade volumes for this economic contributor segment. Spaza shops, according to the report, are starting to compete more with low-cost retailers. The rise of independent retailers is key to consider as consumers turn to them for on-route convenience – and with growing levels of trust in supply. This shift, reflected in a 29% growth among spaza shops, has been driven in part by technology, as well as a growing preference to buy local products over and above known and trusted discount brands. A further variable that impacts purchase decisions in this market segment, suggests Retailing Africa, “is versatility – one product with multiple uses such as the sunlight brick soap, considered ideal for bathing, and washing clothes; or mielie meal, which is an essential calorie-providing carbohydrates and can be had as either a porridge at breakfast; or the starch at supper time.” Added to that, new shopping precincts and corridors are an area of interest for development in emerging markets such as South Africa. Whilst investment in this infrastructure remains unstable and slow on the uptake, nodes that integrate transport corridors with relevant retail spaces, have the potential to create new trade value for the likes of low-cost retail brands. So while there is still significant work to be done to maximise high volume, low cost trade growth, at the beginning of every day – not just at the end of the day – we must remain invested in discount supermarkets. It is with certainty that we know that their growth in market share will have a material positive impact on the growth of our economy. Read more: Don't discount low-cost retail in South Africa - Retail Brief Africa #smartdiscount #qualisave #southafrica #expansion #growth #marketshare #boxer #qualisave #cambridgefood #picknpay #shoprite #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting












