Aldi is to invest £400m in store development over the coming year as it opens and refurbishes branches. The discounter said today it was “stepping up its search for new sites across the country as it aims to continue rolling out new stores at pace”. It is Aldi’s third announcement of expansion ambitions in as many weeks since The Grocer revealed Lidl was dramatically scaling back store openings this year. Lidl has said it intends to focus investment on distribution capacity and will open 25 stores in 2023 – instead of the usual 50 – while property sources have told The Grocer the unofficial number coming from the retailer is eight. Last week, Ronny Gottschlich, Lidl’s UK CEO from 2010 to 2016, said it meant Lidl had effectively conceded to Aldi in the battle to be the UK’s dominant discounter. Aldi – which has about 990 stores to Lidl’s 950 – today also listed its most wanted new locations, including in the Midlands, north west, north east and Yorkshire. Aldi’s store openings have also slowed in recent years, with challenges in securing planning permission and finding suitable sites causing it to fall short of a target of 1,000 stores by 2022. Its estate has numbered ‘more than 990’ since the start of the year, with 40 in the pipeline for 2023, according to the retailer. Aldi and Lidl have been pursuing store number targets for the end of 2025, of 1,200 and 1,100 respectively. Aldi told The Grocer today it still wanted 1,200 stores by the end of 2025, but stopped short of saying it was on track to reach the number within the timeframe. “Having 1,200 stores remains our long-term target, but there are obviously factors outside our control that will impact the timings of that,” said a spokeswoman. “Expansion programmes aren’t always linear and it’s difficult to predict the precise number of stores we will open each year, but our will, capital and appetite to achieve it by 2025 is unwavering.” Aldi CEO Giles Hurley said: “Demand for Aldi has never been higher here are still some towns and areas that either don’t have access to an Aldi or have capacity for additional stores. “To meet that demand, we need to open more stores and it’s our mission to keep driving our ambitious expansion plan to achieve that.” Aldi remained the fastest-growing supermarket in new Kantar data published this week, with sales up 26.7% in the 12 weeks to 19 February, pushing its market share to a record 9.4% and widening the gap on Morrisons’ 9%. Last week Aldi said it wanted to “almost double” its 60-store London estate in the long term. The week before that it said would create more than 6,000 new jobs this year. Aldi has also reiterated its finder’s fee for suitable sites, of either 1.5% of the freehold price or 10% of the first year’s rent for leasehold sites. It would mean a £22,500 fee for finding a location that leads to a £1.5m freehold purchase. Source: the Grocer More details can be found at aldi.co.uk/about-aldi/property. Aldi’s current priority locations are: 1. Birmingham 2. Warwick 3. Wellingborough 4. Cathcart, Glasgow 5. Drylaw, Edinburgh 6. Bonnyrigg 7. Wilmslow 8. Wigan 9. Penwortham 10. Barry 11. Torquay 12. Saltash 13. Basildon 14. Rayleigh 15. St Albans 16. York 17. Harrogate 18. Scarborough 19. Sunderland 20. Chesterfield 21. Ossett 22. Formby 23. Upton 24. Liverpool 25. Chesterton 26. Tunbridge Wells 27. Worthing 28. Bath 29. Oxford 30. Dorchester

Discount Retail Chain TJ Maxx (owned by the TJX Companies) CEO Ernie Herrman said in a call with investors last month, announcing its fourth-quarter and fiscal 2023 earnings, that the company is in an extremely strong position when it comes to sourcing inventory, describing the current inventory availability as "phenomenal." TJ Maxx sells products at 20% to 60% cheaper than department stores and retailers. It does so by buying surplus inventory from retailers. Recent store closures and a slowdown in consumer spending have given it access to more inventory. Recent store closures, and a slowdown in consumer spending because of inflation, have meant that many retailers are being left with a surplus of stock that they want to offload in a quick and discreet way, and TJ Maxx is often the perfect solution for this. The chain buys up excess inventory at a discounted rate and sells it to the consumer at bargain prices, typically 20% to 60% less than full-price retailers. It is an attractive place for retailers to offload inventory because TJ Maxx is happy to buy incomplete assortments, buys without asking for returns privileges, and mostly sells in-store so there's limited risk of discounted brand names being splashed all over the internet which could harm the brand image. So, how does it keep its prices so low? A network of experienced buyers TJ Maxx has a team of more than 1,200 buyers who source products from its 21,000 vendors globally. These buyers are the "secret sauce" to its success, Neil Saunders, managing director of GlobalData Retail, told Insider. They know where to look for the best deals and cast their web wide. Brands that want to offload inventory TJ Maxx's buyers know how to negotiate the best prices but they're also in a strong position to do so. Essentially, parent company TJX buys other companies' mistakes when they've ordered too much inventory or demand has tailed off, Simeon Siegel, managing director of BMO Capital told Insider. "Inventory doesn't get better with age," he said, and because retailers are aware of this, TJ Maxx pays much less upfront for this product. 2022 was a good example of how the market can turn in TJ Maxx's favor. While the company was subject to industry-wide rising supply chain costs, the snafus in this pipeline meant that many retailers were receiving the wrong inventory at the wrong time and an easy way to get rid of it was to sell to the off-price channel. TJ Maxx continues to have the "pick of a large pool" when it comes to inventory, Morningstar analyst Zain Akbar wrote in a note to clients in January. Buying in bulk The scale and size of TJ Maxx, it has vendors in over 100 countries and stores in nine, mean that its buying team is often buying product in bulk, which gives it more room to negotiate deals with sellers. According to Morningstar research, it also buys up inventory when it's cheaper to store up for future seasons. And as it's happy to buy a limited assortment rather than the full collection of sizes and styles from a retailer, it is an attractive option for these stores and therefore has more leverage to bargain on price. It sells its own brands TJ Maxx also sells products that are manufactured especially for the chain, which means it has direct control over the pricing in this area. This is an area of its business that is growing, Siegel said. Well-known brands like Ralph Lauren have been known to make items for TJ Maxx in the past, but pulled back in a bid to address worries about brand exclusivity. Low maintenance stores TJ Maxx's low-frills stores also help to keep costs down. These stores are typically stuffed with racks of product. The appeal here is the treasure hunt shopping experience, where customers care more about assortment and price than the store design. See here for more: Here's How Discount Giant TJ Maxx Keeps Its Prices so Low (businessinsider.com) #tjmaxx #usa #smartdiscount #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Retail Chains such as Aldi USA (German family owned) has quickly increased its footprint in the U.S. and seen a 9.3% increase of visits per venue since 2019, according to Placer.ai. Aldi has grown in popularity in the U.S. as consumers look for more value in grocery, according to Placer.ai. The German grocery chain is undergoing a significant expansion in the U.S., which can explain part of the overall increase in foot traffic. Aldi doesn’t offer a loyalty program and instead focuses on everyday low prices and a wide selection of its private label. As consumers continue to face pressures of rising food prices and inflation in other retail categories, value grocer Aldi has made headwinds in wooing more consumers in the U.S. According to a new report from retail location intelligence firm Placer.ai, Aldi has seen both an overall increase in traffic in the U.S. as it has expanded its U.S. footprint and an increase in visits per venue. The grocer, which is based in Germany and headquartered in Illinois in the U.S., saw a 7.3% increase in visits per venue compared to 2021 and an even larger 9.3% increase in visits per venue compared to 2019. Overall visits to Aldi in the U.S. increased 30.8% between the fourth quarter of last 2022 and the same quarter in 2019. While the store has clearly grown in overall popularity with consumers in the U.S., the overall increase in nationwide visits can be attributed largely to Aldi’s growing footprint in the country during the past several years. The grocer, for example, opened its first California store in 2016, it now has 95 stores in the state, Placer.ai noted. On its website, Aldi lists more than three-dozen stores that opened in 2022 or are slated to open in 2023. The retailer operates more than 2,000 stores located across the U.S. in Alabama, California, Delaware, Florida, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Ohio, Pennsylvania, South Carolina, South Dakota and Virginia. While loyalty programs have become increasingly important to consumers, Aldi doesn’t offer such a program. Instead, it lures shoppers with a promise of everyday low prices and its wide assortment of private-label products, which have become increasingly popular with shoppers. Aldi ranked 12th on Dunhumby’s annual “Retailer Preference Index,” which found that consumers’ top choices for groceries include H-E-B, Amazon, Costco, Wegmans and Sam’s Club. Other hallmark features of an Aldi store include shopping carts that consumers must return themselves and Aldi Finds, an assortment of discounted non-grocery items offered once a week. Consumers are more regularly turning to value grocery chains or even dollar stores to get better prices on groceries amid economic hardship, Retail Leader Pro’s Chief Analyst Elizabeth Lafontaine noted earlier this month. According to Coresight Research, one in five shoppers now buy groceries at a dollar store in the U.S. See here for more: Visits to Aldi increase as consumers prioritize value | Retail Leader #smartdiscount #ALDI #expansion #growth #usa #popular #discounters #discount #retail #consulting #discountretail #discountretailconsulting #drc

Product of the Year USA recognized 36 winning items in the 2023 Product of the Year Awards, with food and beverages accounting for over half of the products and Aldi as one the top-winning companies. Each of the winning products, announced Friday, was honored as the most innovative in their category by New York-based Product of the Year (POTY). The items were chosen by 40,000 American shoppers in a nationally representative survey conducted by consumer and retail research firm Kantar. Among the 2023 winners, consumables led the way with 20 products, following by health and beauty care with 11 products and home care with five products. Of the winning companies, discount grocer Aldi tallied the most Product of the Year Awards with nine and represented the only other retailer to garner a POTY award. Other companies taking home multiple awards included Nestlé with four (Nestlé USA one, Nestlé Health Science three), PepsiCo and Sanofi Consumer Healthcare with three apiece, and S.C. Johnson & Son with two. The winning products, unveiled each February, get the right to use the Product of the Year logo in marketing communications for two years. Product of the Year USA has noted that its red seal is proven to boost consumer awareness and build product sales and distribution. The 36 winning products can use the Product of the Year red seal in marketing communications for two years. / Photo: Product of the Year USA The 2023 Product of the Year Award winners, by category, were the following: CONSUMABLES Bread: Aldi-exclusive Specially Selected French Baguette (Aldi) Breakfast: Quaker Puffed Granola (PepsiCo) Cheese: Aldi-exclusive Emporium Selection Feta Block Assortment (Aldi) Coffee Creamer: Lactose-Free Flavored Creamer in French Vanilla and Sweet Cream (Organic Valley) Condiment: Aldi-exclusive Burman's Dipping Sauces (Aldi) Convenience Meals: Hot Pockets Deliwich – (Nestlé USA) Entree: Pasta-Roni Heat & Eat (PepsiCo) Frozen Dessert: Aldi-exclusive Sundae Shoppe Gelato (Aldi) Keto: Aldi-exclusive Bento’s Keto Cookies (Aldi) Meal Replacement: Complete Nutrition Shakes (Soylent) Meal Solution: Bob Evans Mashed Cauliflower (Bob Evans Farms) Non-Chocolate: Haribo Berry Clouds (Haribo of America) Non-Dairy: Aldi-exclusive Friendly Farms Non-Dairy Whipped Topping (Aldi) On-the-Go Snack: Aldi-exclusive Park Street Deli Sweet Snack Selects (Aldi) Premixed Drink: Aldi-exclusive Zarita Margaritas (Aldi) Salty Snack: Takis Hot Nuts Fuego (Barcel USA) Smoothie: Dole Boosted Blends Berry Spark Smoothie (Dole Packaged Foods) Snack & Appetizer: El Monterey Chili Cheese Chimichanga (Ruiz Foods) Soft Drink: Nitro Pepsi (PepsiCo) Wine: Aldi-exclusive Don’t Mind If I Do Sauvignon Blanc (Aldi) HEALTH & BEAUTY CARE Body Cleanser: Dial Body Wash (Henkel) CBD: CBD Sleep Gummies (Sky Wellness) Children's Health: Children’s Zyrtec Allergy Chewables (Johnson & Johnson Consumer Health) Digestive Health: Dulcolax Chewy Fruit Bites (Sanofi Consumer Healthcare) Hair Growth: Nature’s Bounty Optimal Solutions Hair Growth (Nestlé Health Science) Immediate Relief: Carmex weather Guard Lip Balm (Carma Laboratories) Topical Pain Relief: Icy Hot Pro (Sanofi Consumer Healthcare) Weight Management: Nature’s Bounty Optimal Solutions Metabolism Booster (Nestlé Health Science) Wellness Device: Aspercreme Flexi-Motion (Sanofi Consumer Healthcare) Wellness Supplement: Nature Made Wellblends (Pharmavite) Women’s Daily Supplement: Nature’s Bounty Optimal Solutions Advanced Hair Skin & Nails (Nestlé Health Science) HOME CARE Auto Dish Care: Cascade Platinum Plus (Procter & Gamble) Car Care: Rain-X Truck & SUV Wiper Blade (ITW Global Brands/Rain-X) Home Cleaning: FamilyGuard Brand Disinfectants (S.C. Johnson & Son) Home Essentials: Ziploc Endurables (S.C. Johnson & Son) Mattress: Nectar Premier Mattress (Resident Home) The 2023 Product of the Year winners also are featured in a shoppable article on People Online created with publisher Dotdash Meredith, the largest digital and print publisher in America. “The level of access consumers have to products today is unprecedented. Far beyond retail aisles, they have DTC options, grocery delivery in the palm of their hands, and they can watch their favorite influencer review items they're considering purchasing in real time,” Mike Nolan, global CEO of Product of the Year Management, said in a statement. “Product of the Year is an established and increasingly relevant resource for CPG companies, helping their products stand out and be understood and trusted by their customers. Entirely new 2023 categories of Product of the Year award winners further demonstrate the ever-evolving trends we are seeing in the U.S. market.” For over 30 years globally and 15 years in the USA, Product of the Year has recognized products that demonstrate innovation in function, design, packaging and/or ingredients. See here for more: Aldi leads in winning brands at 2023 Product of the Year Awards (winsightgrocerybusiness.com) #smartdiscount #privatelabel #ownbrand #aldi #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Variety Retail Chain TEDi (owned by the German Tengelmann group) is coming to Belgium and France. The chain with 2,750 shops in a dozen countries plans to double its store network in the not-so-distant future. “The German Action” TEDi is preparing to enter Belgium and France. For the latter, a store in Evreux is planned; for the former, real estate partner Retail Point exclusively reveals to RetailDetail that it is looking for stores of around 1,000 sqm across Belgium. This year alone, the non-food discounter wants to open five to ten branches in Belgium. Tedi is a rather formidable competitor for Action: the Germans are also aiming for cheap and attractive items at low prices, from stationery and decoration to toys and DIY products. TEDi also aims to offer a one-stop shop solution for bargain hunters. Doubling store network The range comprises some 15,000 references, with an extra focus on aesthetics and design. The permanent offer is complemented by stock clearance items and seasonal products. TEDi also has a house brand: TEDi Black. The hard discounter, known in full as Top Euro Discount, has more than 2,750 shops in a dozen countries in Central Europe (Austria, Czechia, Germany, Hungary, Poland and Slovakia) and Southern Europe (Croatia, Italy, Portugal, Romania, Slovenia and Spain). In the medium term, the chain plans to almost double its network to 5,000 shops, with shops in Belgium, France and the United Kingdom as well. See here for more: German Action rival TEDi to conquer Belgium and France - RetailDetail EU #smartdiscount #tedi #tengelmann #germany #belgium #france #action #expansion #growth #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Retail Chain DIA Group (listed BMAD: DIA and owned by the UK based LetterOne) reported €7.3 billion in net sales for 2022, a 9.6% increase on the previous year, fuelled by a 7.3% LFL sales increase in the fourth quarter of the year, to €1.8 billion. Gross sales in Spain increased 6.3% to €5.3 billion in 2022, with like-for-like sales growth of 11.6% in the fourth quarter, with the retailer also gaining market share. Performance Outside Spain Argentina saw 30.8% sales growth to €1.36 billion, despite a drop in consumption during Q4. Net sales in Portugal grew 0.5% to €596 million (+3.7% LFL), while Brazil delivered €890 million in net sales, reporting 10.9% growth (+7.4% LFL). Despite this growth, there was a 0.9% decrease in the size of the average shopping basket, DIA said. There were 23 store openings in Spain and 101 in Argentina, while 809 and 255 stores were remodelled, respectively. Divestment Of Business During the year, DIA sold a number of large-sized stores to Alcampo in Spain and also divested its personal and home care banner, Clarel. Both transactions await the fulfilment of certain transactional conditions and should be concluded during 2023. Net sales from stores sold to Alcampo and the Clarel stores amounted to €761 million, excluding these stores, Spain delivered a LFL growth of 8.3% in FY and 12.5% in Q4. DIA has 5,699 stores, some 2,323 stores are now operating under the new trading model, representing 60% of its proximity network. Sales of private label products grew 4% in Spain, accounting for 52.6% of the shopping basket, on average. During 2022, the group revised 690 DIA products, taking the total number of private-label products that have undergone renewal to 1,810 since 2020. See here for more: Spain's DIA Delivers 9.6% Sales Growth In 2022 | ESM Magazine #smartdiscount #dia #spain #growth #expansion #argentina #brasil #brazil #portugal #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Variety Retail Chain Action (owned by 3i group and eurofund V) has this effect on many customers: we enter with the idea of buying only what is on the shopping list, we come out with twice as many products, paid between 1 and 2 euros. A real mine of "good business". Because this is the model of the chain store: sell everything, as cheaply as possible. Founded in 1993 in the Netherlands, in the small town of Enkhuizen, Action has gradually been exported throughout Europe and today operates in ten countries with 2,263 stores. The brand will conquer an eleventh market, Slovakia, from March 2023. After 10 years of activity in France, Action has established itself as one of the leaders in discount products on non-food products and is multiplying store openings. Recipe of a company that has managed to seduce French and Europeans, and whose model is timely in this period of high inflation on the Old Continent. 1. The France, the largest share market In 2021, Action already operated 653 stores in France, the first of which opened in 2012. It is the busiest country in Europe. In 2022, two new stores opened every week in France, where the company now employs more than 15,000 people. Most French shops have opened in rural towns or in commercial areas on the outskirts of large metropolises. Blue and white stores have an almost identical format regardless of the country. They allow a fluid route of customers, with a multiplication of checkouts, automatic or not, to make the purchase journey even more attractive. The France was the fourth country in Europe invested by Action. If the number of stores exceeds that of its country of origin, the Netherlands, it is mainly because there, the territory is now saturated. The company has been turning more towards southern European countries lately, with the opening of the Italian market in 2021 and the Spanish market this year. Today, it is the fastest growing non-food brand in Europe. 2. A variety of products at discounted prices Housekeeping, hygiene, decoration, storage, electronics... Action stores sell a wide variety of products, all with a large restocking. Only 35% of the overall range is fixed, out of about 6,000 items sold in a store. But above all, prices are broken, according to the brand's main selling point. The average cost of items is less than two euros. A "hard discount" model that has seduced Europeans, especially in times of inflation where buying cheap has become a challenge. To display low prices, the company recovers destocked batches from major brands, which allows it to sell them significantly cheaper than in supermarkets. 3. A female clientele with little education Thanks to a difficult economic situation for European households, hard-discount brands are doing well. Action took advantage of the trend and saw its sales explode in 2022: they took 30%, amounting to 8.9 billion euros. This interest in low prices is also reflected in the profile of Action en France's clients. The average French consumer is a woman (61% of customers), aged over 50 and generally with little education, implying a low standard of living. It is in France that the proportion of people with few degrees going to Action is the highest. In the rest of Europe, the clientele is much more diversified. But it remains predominantly female, a sign that households have postponed part of the shopping from home to Action. In total, 12 million customers pass through the doors of the brand every week on the continent. 4. A post-covid rebound Like the entire retail sector, the health crisis has had a significant impact on Action's results. By 2021, the company's net sales had rebounded by more than 20% as the economy restarted. But the pandemic has also pushed the company to take the turn of e-commerce, with a dedicated mobile application and click & collect points during the health crisis. Share is valued at ten billion euros in the accounts of its shareholder 3i Capital in 2019. Not far behind the valuations of major French retailers. The sign that the brand has established itself as an essential store in the lives of Europeans. In addition, Action ranks third in the ranking of favorite brands of the French in 2022, after the usual Leroy Merlin and Decathlon, of the Mulliez family empire. 5. Outstanding environmental issues If Action attracts a clientele with reduced purchasing power thanks to a particularly affordable offer, corresponding to the economic concerns of the moment, the question of the sustainability of the model arises. This mode of consumption is still far from the sustainable commitments increasingly put forward by brands. At Action, more than half of the products are made in China. And the idea of always buying more for less remains the watchword. However, carbon neutrality is a goal, set for 2030. See here for more: Cinq choses à savoir sur Action, le champion du discount qui monte | Les Echos #smartdiscount #action #nonfood #variety #france #expansion #growth #drc #discoun #retail #consulting #discountretail #discountretailconsulting #eurofundV #3igroup

It looks like US shoppers are head over heels in love with Aldi. In January, the company with estimated annual sales of $19 billion unveiled its 26th distribution center, which will supercharge the retailer’s expansion in the fast-growing Sun Belt. That same month, dunnhumby named Aldi the No. 1 grocery leader in Price for the sixth year in a row. In October, Aldi revealed that more than 1 million new shoppers had lifted same-store sales growth by double digits year over year at the chain, as inflation drives consumers to look for bargains on food. Fastest-Growing Grocer In early 2022, the discount grocer revealed plans to open 150 new stores by the end of the year. While the retailer was able to open and remodel 139 locations last year, that’s still more new openings than any other grocer in the country, according to a new report from JLL, a Chicago-based professional services firm. Aldi is now the third-largest grocer in the United States by store count, with a current total of 2,285 stores. Aldi currently has its sights set on establishing a dominant presence in the Sun Belt, a swath of the United States that has attracted scores of new residents since the pandemic. Last month, the retailer opened another regional headquarters and distribution center, in Loxley, Ala., which will ultimately serve as many as 100 stores across the Gulf Coast. Historically, Aldi distribution centers have been designed to service 70 to 75 stores in a 150-to-200-mile radius. “At a time when inflation is putting pressure on American wallets, we believe our mission to save people money on the food and products they need is more important than ever,” says Heather Moore, Aldi divisional VP for the Loxley region. “We are thrilled to see so much customer love for the 20 stores we’ve opened in the Gulf Coast area in the last year alone. Once they see the quality, selection and value Aldi offers, they keep coming back. That’s why we’re committed to providing our customers the lowest possible price and the best possible value — that’s something that will never change.” The 564,000-square-foot Loxley facility (most Aldi DCs range between 400,000 to 525,000 square feet) is equipped to service stores across Louisiana, Alabama, Mississippi and the Florida Panhandle. In total, the 100 stores that will be supported by the Loxley facility represent an opportunity to reach more than 8 million customers. As the company's sixth regional headquarters in the southern United States, Loxley aims to support the grocer’s rapid expansion in the region. Aldi is now operating 30 stores in the Gulf Coast, having opened 20 stores in the area in the past year alone. It plans to add another 13 stores in 2023, including one in Fairhope, Ala., that is slated to open on March 2. Other stores in development include locations in Tampa and Callaway, Fla.; Flowood and Hattiesburg, Miss.; and in the Baton Rouge, La., area. Driving all of this growth is a fervent customer base: A new report from Los Altos, Calif.-based Placer.ai shows that Aldi saw some of the greatest gains in foot traffic during the fourth quarter of 2022. Specifically, the grocer saw store traffic increase 6.8% YoY and 30.2% Yo3Y – in large part thanks to the brand’s ongoing U.S. expansion. “Within grocery, there are two subcategories that generally overperformed in 2022: those that serve as a primary one-stop shop for the bulk of grocery needs, and those with a value orientation,” explains Ethan Chernofsky, VP of marketing for Placer.ai. “The latter segment also benefited from the massive expansions in overall footprint for some of the leaders within that group. Even as the impact of inflation dissipates, there is ample reason to expect both of these groups to continue to show strength.” The other part of Aldi’s value proposition for shoppers comes from the design of its smaller, easier-to-shop stores. “At Aldi, we offer a store experience that is fast, efficient and fun,” notes Joan Kavanaugh, VP of national buying at Aldi. “A typical store is approximately 12,000 square feet of retail space, making Aldi stores easier and quicker to navigate. Every Aldi has a similar easy-to-shop layout, so it feels familiar to customers no matter where in the country they’re shopping.” According to Kavanaugh, the company is working to make the shopping experience “even more convenient by remodeling stores in select markets to include self-checkout lanes. “So far, the customer reaction has been extremely positive, and shoppers are excited about the added option for quick shopping trips,” she adds. Aldi fine-tunes its assortment to provide shoppers with what it considers a perfect mix: 90% private label and 10% branded products that are on-trend, local and seasonal, with a little treasure hunt mixed in. E-commerce When the pandemic hit, Aldi was ready for the grocery e-commerce boom. The retailer had already partnered up with Instacart in 2018 on delivery, so it was well prepared to offer e-commerce options when shoppers drastically cut back on trips to its physical locations. In 2020, Aldi was the first grocery retailer to work with San Francisco-based Instacart on launching and then expanding shopper access to the Electronic Benefit Transfer and Supplemental Nutrition Assistance Program (EBT SNAP). As part of this program, EBT SNAP participants were able to shop from ALDI via the Instacart online site and mobile app at a critically important time: the peak of the pandemic. “We pivoted to accelerate our e-commerce operations to give our customers more ways to access fresh groceries and essential household items,” Patton says. “This included investments in services like curbside grocery pickup and grocery delivery. Since the world has opened back up, the shift to e-commerce has not slowed and we are seeing shoppers continue to use these options as a convenient way to shop with.” Recently, Aldi has moved to invest further in its omni operations. The retailer has been working with Spryker, a German technology company, to develop a new online food and grocery shopping experience for the U.S. market, offering grocery delivery or curbside pickup. The new digital commerce platform is currently being tested with a select group of U.S. shoppers and is planned to be introduced nationally in a phased approach. Aldi’s new digital commerce platform follows through on the grocer’s pledge made last year to increase access to convenient online shopping options. During that time, Aldi indicated that it would expand its curbside grocery pickup offering from 1,200 to 1,500 stores by the end of the year. “Our partnership with Spryker will allow our shoppers another way to access the incredible value they expect from Aldi,” Patton says. The new Aldi DC in Alabama features efficient design components, including roof-mounted solar panels, LED lighting, an environmentally friendly refrigeration system and metal panel insulation. Trip Consolidator Destination One of the many repercussions of inflation and elevated fuel prices during the past year has been trip consolidation: Consumers are shopping fewer stores, trying to get everything they need in one shop. They simply don’t want to burn gas driving to multiple stores, or to stores too far from their homes. “The impact of inflation and other economic headwinds are likely to continue affecting consumers in the coming months,” Placer.ai’s Chernofsky says. “While a degree of continued ‘trading down’ is to be expected, another important effect has been the lengthening of visit duration driving greater opportunity for those chains that succeed in driving the visits. This understanding is going to be critical for chains to best position themselves for an extended period where the effects of continued economic headwinds are felt.” Trip consolidation has been a bon for Aldi, which fine-tunes its assortment to provide a perfect mix of 90% private label and 10% branded products that are on-trend, local and seasonal, with a little treasure hunt mixed in. “We do things differently at Aldi by design,” Patton asserts. “We’re passionate about offering Aldi shoppers fresh and delicious foods, and on-trend products we know they’ll love, always at great prices. Customers can always shop with confidence because one in three of our Aldi-exclusive products are award-winning, and we back that up with our Twice as Nice Guarantee.” As sales of natural food products continue to rise as a result of post-pandemic-related health concerns, Aldi is doubling down on better-for-you, organics and non-GMO. Aldi-exclusive brand Simply Nature offers customers many organic options at affordable prices. All Simply Nature foods are certified organic or Non-GMO Project Verified, and meet USDA National Organic Program Standards. On top of that, nearly 100 Simply Nature foods have earned the Good Housekeeping Nutritionist Approved Emblem. Aldi is also focused on making sure that assortments reflect local communities. “What makes shopping at Aldi fast and easy is the consistent experience and product assortment in our stores from coast to coast,” Patton says. “That said, we know preferences vary across the country, which is why about 5%-10% of the products in each store are regional items. Shoppers are likely to find their favorite local brands, craft beers, and various types of breads or cuts of meat that are particularly popular in the area.” The discounter also offers rotating seasonal items and flavors, and its treasure-hunt program, Aldi Finds. These limited-time specialty items range from unique foods and home goods to other unexpected items like workout equipment, furniture or décor. “We make sure to offer our shoppers the items they need during that time of year,” Patton explains. “If you visit Aldi over the summer, you may find grilling essentials, and during the holidays, we will have shelves dedicated to meats and cheeses for charcuterie boards, and kitchen items needed for hosting.” Aldi has also attributed some of its success to offering more fresh produce over the past two years; in fact, produce now makes up two-thirds of what Aldi customers put into their carts. Lean & Green As Aldi continues its rapid expansion across the United States, and as consumers increasingly shop with sustainability concerns in mind, the retailer remains committed to becoming a more eco-friendly company. For instance, the new DC in Alabama features some of the most innovative and efficient design components included in any Aldi facility to date, including roof-mounted solar panels, LED lighting, an environmentally friendly refrigeration system and metal panel insulation. These elements work together to create a thermally tight and efficient building. The retailer has also remodeled more than 1,100 existing stores to be more eco-friendly, and has invested more than $5 billion to support making new and remodeled stores more environmentally friendly. “Sustainability has always been a driving force at Aldi, and we’re proud that the Aldi model is inherently more sustainable,” Kavanaugh affirms. “Our commitment to reduce greenhouse-gas emissions by 26% in 2025 can be seen throughout many of our new and remodeled stores, which may feature environmentally friendly building supplies, energy-efficient HVAC units, more environmentally friendly refrigerants, and/or solar panels.” Last year, Aldi released its first-ever “Corporate Responsibility Progress Report,” which outlined progress toward its environmental goals. Also, the grocer is working to reduce its use of plastic and increase the recyclability of its packaging. To date, 62% of Aldi-exclusive packaging is reusable, recyclable or compostable. The company additionally plans to eliminate all plastic shopping bags from stores by the end of 2023 and to reduce operational food waste, all while ensuring that its products are responsibly sourced and remain affordable. It’s a value proposition that’s helping Aldi outperform competitors and grab greater market share as more shoppers seek quality products and relief from inflationary prices. As Patton notes, “Our business is built on maximizing cost savings that we pass along to our customers — an approach that we have been practicing since we opened our first store, and one that is more important than ever before.” Source: Progressive Grocer #usa #aldi #smartdiscount #expansion #growth #stores #dc #scm #drc #discount #retail #discountretail #discountretailconsulting #consulting

Discount Retail Chain Lidl USA (owned by the German Schwarz Group) is planning to expand its supply chain capacity in Pennsylvania. Lidl has purchased nearly 70 acres in Bucks County, Pa. for a future warehouse at the site of the Keystone Trade Center, located along the Delaware River across from Trenton, N.J. Lidl Spokesperson Jessica Shangle didn’t give specifics about the sale, pegged to be close to US$145 million, but did note that a project is in the works. “We are still in the early planning phase for the site and will have more to share over the coming months,” she said. Lidl acquired the property from NorthPoint Development, which owns the 1,800-acre campus on which the warehouse will sit. According to local media, the campus will eventually include more than 20 buildings. Lidl currently operates several stores in Pennsylvania, including locations in Philadelphia, Lancaster and Reading. The construction of a warehouse comes as Lidl is set to build out a store in the town of Warminster in Bucks County. In January, Lidl held a grand opening for its newest 36,000-square-foot store in Long Island, N.Y. The grocer runs about 170 stores in nine East Coast states, and has seen recent success as consumers continue to flock to private brands. See here for more: Lidl Plans New Pennsylvania Warehouse | Store Brands #smartdiscount #lidl #warehouse #dc #growth #expansion #usa #scm #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Retail Chain Aldi aims to “almost double” its 60-store London estate, creating about 2,400 jobs. The discounter has reiterated its finder’s fee for suitable sites, of either 1.5% of the freehold price or 10% of the first year’s rent for leasehold sites. It would mean a £22,500 fee for finding a location that leads to a £1.5m freehold purchase. The discounter is looking for 20,000 sq ft sites for its standard store format as well as much smaller units of as little as 5,000 sq ft for its Aldi Local stores. The larger sites will preferably be on a prominent main road with good visibility and access, and room for a 100-space car park. A spokesman said the supermarket was also targeting a wider brief of properties, including empty office blocks, in light of changed working patterns. He said Aldi would “bring lower food prices to more Londoners” by “ramping up efforts as others scale back”. It is a clear signal of intent from Aldi, for the second time in a week, that it will press on with store openings at pace as rival Lidl slows. Both discounters have aimed for about 50 news stores a year for a number of years but, as revealed by The Grocer earlier this month, Lidl is now planning just 25 in 2023, with property sources predicting only sites already agreed to will be completed. Lidl has said it will focus investment on warehouse capacity instead. The news was followed by Aldi announcing last week that it will create 6,000 jobs this year as it opens “dozens” of stores across the country. Until recently, both discounters were also toe-to-toe in a race for sites in the south east of England, the region that accounted for nearly one in three of each of their store openings in 2022, according to data location analytics firm Maximise UK. With both making big gains from traditional supermarkets in the cost of living crisis, the prize for reaching more customers in new places has never been bigger. Aldi’s market share has climbed from 7.8% to 9.2% in the past year, and Lidl’s has grown from 6.2% to 7.1% [Kantar 12 w/e 22 January 2023]. Aldi has about 990 UK stores, while Lidl has about 950. “We strongly believe that access to affordable, high-quality food is a right, not a privilege,” said Aldi regional MD Ben Shotter. “But we’re conscious there are still many areas, particularly in the capital and within the M25, that don’t have access to an Aldi. “As a result, too many people have to make do with big prices at the big supermarkets. We want to give more people a new Aldi store with our award-winning products at unbeatable prices. We are looking for locations across the UK, but particularly in London.” See here for more: Aldi aiming to ‘almost double’ its London store count | News | The Grocer

Packaged goods private brand sales saw record growth last year, jumping 11.3% to a whopping $228.6 billion in the U.S. for the 52 weeks ending January 1, 2023, versus the prior year. Retailer-owned Brands grew at nearly twice the rate of national brands, which were up 6.1% in dollar sales, according to IRI Unify sales data. The dollar share increased to 18.9%, up from 18.2% in 2021. Unit share grew to 20.5%, from 19.9%. Private brands also outperformed national brands when it came to unit sales in 2022. The products were off slightly by 1% compared to national brands which decreased 4.1%, producing an overall industry decline of 4%. While private brand unit sales slipped by 1% in 2022, they outperformed national brand unit sales, which dropped -4.1%. Private brand growth in 2022 was distributed across the store. Looking at the 17 individual food and non-food IRI Unify departments for the trailing 52 weeks January 1, 2023, store brand dollar sales increased in 16 of them, including double-digit increases in nine: Beverages (the leader at plus 19.1%), Deli Prepared, Refrigerated, Liquor, General Food, Floral, Bakery, Produce, and Deli Meat. Only in the small ($67m in sales) Tobacco department was store brand sales off, down 10.9%. See here for more: Private Label Manufacturers Association’s 2023 Private Label Report #smartdiscount #iri #plma #privatelabel #ownbrand #usa #growth #expansion #drc #discount #retail #consulting #discountretail #discountretailconsulting