Aldi is aiming to bring lower food prices by securing more supermarket locations, as part of a multi-million-pound expansion plan in London. The German discounter has pledged to almost double its 60-strong estate within the M25 and create around 2,400 jobs. Aldi currently has more than 990 stores across the UK and will open its 1,000th store later this year. Aldi is looking for locations big enough for its standard 20,000 sq ft stores, which need around 100 dedicated parking spaces, preferably on main roads with good visibility and access. In addition, the supermarket says it is also on the lookout for sites to accommodate its smaller Aldi Local store format, which are around 5,000 sq ft in size. It is targeting empty office blocks and new housing locations as well as freehold town-centre or edge-of-centre sites suitable for property development. “We strongly believe that access to affordable, high-quality food is a right, not a privilege. But we’re conscious that there are still many areas, particularly in the capital and within the M25, that don’t have access to an Aldi,” regional managing director at Aldi, Ben Shotter said. He added: “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.” It comes as Aldi is set to create more than 6,000 new job roles as it looks to expand the business in 2023. Aldi was also named the nation’s favourite supermarket, according to the latest polling data from YouGov. Source: Grocery Gazette #uk #london #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy #expansion #growth #marketshare

Aldi is set to create more than 6,000 new job roles as it looks to expand the business in 2023. The discount grocer currently has more than 990 stores and employees around 40,000 people, however it is set to open new sites in cities such as Norwich and Newcastle this year. Next month, Aldi will also be opening the doors to two new stores in Huddersfield and Shrewsbury. Currently, the supermarket is recruiting for 450 jobs across its 11 regional distribution centres around the UK, offering store assistants a starting pay of £11 an hour nationally, rising to £11.90. For those within the M25, pay starts at £12.45, rising to £12.75, with all store assistants paid for breaks. Aldi also increased pay rates for 7,000 warehouse colleagues this month, with selectors now receiving a minimum starting salary of £13.18 per hour, up from £11.48 this time last year. “Demand for Aldi has never been higher as more and more people realise they can make significant savings on every shop without compromising on quality,” Aldi UK chief executive officer, said. “It’s more important than ever that we are making it even easier for more people to shop with us – including by opening dozens of new stores. “Our success is dependent on the amazing work that colleagues do, day in and day out, and we’re looking forward to welcoming thousands more colleagues to team Aldi throughout 2023.” Source: Grocery Gazette #uk #employment #jobroles #growth #marketshare #discounters #growth #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy

Aldi has been named the nation’s favourite supermarket, according to the latest polling data from YouGov. Shoppers ranked Britain’s fastest growing supermarket ahead of other German discounter Lidl and the big four supermarkets – Tesco, Sainsbury’s, Asda and Morrisons in the study. YouGov Ratings measure Aldi’s popularity and fame every quarter, with this latest data based on 1,200 consumer responses from the British public, collected during Q4 2022. It comes at the same time as the supermarket attracted an additional 1.3m shoppers, as consumers look to save money during the cost-of-living crisis. Additionally, Aldi was also recognised by Which? as the UK’s Cheapest Supermarket having won the accolade for two years running. “We know that with the rising pressures of the cost of living, customers are looking for ways to save more than ever, while still looking for high-quality affordable food,” communications director at Aldi, Richard Thornton said. “Aldi continues to offer great quality products at unbeatable prices, which is why we believe British shoppers have voted us the nation’s favourite supermarket yet again.” Aldi saw strong new year sales of 26.9% in the four weeks to 22 January 2023 as its market share now stands at 9.2%. It also donated 10,000 activity books to UK charities to help keep children entertained during February half-term. Source: Grocery Gazette #uk #popular #yougov #which? #favourite #growth #marketshare #discounters #growth #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy

Discount Non-Food Retail Chain MR D.I.Y. Group (M) Berhad (listed on the Malaysian MYX) reported revenue of RM1.1 billion, a 9.3% increase year-on-year (YoY) compared to the corresponding prior period. The growth was driven primarily by a 15.2% increase in transaction volume as the Company continued to grow its nationwide footprint further. The Group’s store network expanded from 900 stores in FYE2021 to 1,080 stores as of 31 December 2022 across its three brands, MR D.I.Y., MR Toy and MR Dollar. The Group’s profit before tax (PBT) for the period rose 5.5% y-o-y to RM188.9 million led by the higher revenue. Normalised net earnings for the 4QFY2022 increased 8.7% y-o-y to RM146.3 million. Reported net earnings was RM136.1 million, or RM10.2 million lower, as a result of the one off prosperity corporate tax levied on companies with chargeable income above RM100 million at a tax rate of 33% instead of the current normal corporate tax rate of 24%. Net normalised earnings margin for the 4QFY2022 was 13.7% compared to 13.8% in the correspondingly quarter of FY2021. The results benefitted from a rebound in gross profit margin offset by higher operating expenses, particularly from significantly higher employee cost in line with a 25% increase in the minimum wage rate, which came into effect on 1st May 2022. The Group reported cumulative revenue of RM4.0 billion for the financial year ending December 31, 2022 (FY2022). The figure marked an 18.2% increase y-o-y compared to the financial year ended 31 December 2021 (FY2021). Normalised net earnings improved 11.9% y-o-y to RM483.1 million, driven by solid revenue growth. However, the full year performance was impacted by inflationary cost pressures on the overall gross profit margin and higher operating costs due to an increase in the minimum wage which was implemented in May 2022. Reported net earnings was RM472.9 million, impacted by the one-off prosperity corporate tax. Since its IPO in 2020, MR D.I.Y.’s store network has grown by 82.1% from 593 at the beginning of 2020 to 1,080 as at the end of FY2022. Revenue has grown by 55.7% from RM2.6 billion in FY2020 to RM4.0 billion in FY2022 while normalised net earnings have grown by 43.3% from RM337.1 million in FY2020 to RM483.1 million in FY2022. Announcing the results, MR. D.I.Y.’s Chief Executive Officer Adrian Ong said, “MR D.I.Y’s performance is underpinned by a resilient business model backed by a value for money offering that benefits all our consumers. We have been fortunate to have delivered continuous growth with revenue reaching the RM4.0 billion mark on the strength of consistent quarterly and annual performances. These positive results are attributed to our loyal customers across the country, and our more than 15,500 employees, who ensured to stay on course with the expansion strategy while continuing to explore innovative retail experiences for its customers. Ong added, “The Group is optimistic about its prospects going forward, given the positive post pandemic sentiment. The more favourable freight environment and the strengthening of the Malaysian Ringgit against both the United States Dollar and Chinese Renminbi also favour a better performance. There are still concerns on the impact on household income given rising interest rate and increases in cost of living.” “We remain committed to long-term sustainable growth through a measured store expansion strategy, innovations in product offering and continuous focus on providing value for money to consumers under our “Always Low Prices” formula. Mr. DIY, Malaysias, target is to open 180 new stores across all brands in 2023, which will bring the total Malaysia store network to over 1,200 and further cement the Group’s position as the largest home improvement retailer in the country, whilst continuing to provide our customers with value, convenience, and a wide range of products at unbeatable prices.” MR D.I.Y declared a dividend of RM56.6 million for 4QFY2022, taking the full year’s dividend payout to RM204.2 million. About MR DIY MR D.I.Y. Group (M) Berhad is a home-grown enterprise with 1,080 stores in Malaysia and Brunei. The home improvement retailer has dedicated to make a positive difference in the lives of its valued customers by offering convenience at all its stores nationwide and online at www.mrdiy.com.my All MR. D.I.Y. stores are managed directly and the retailer often works in collaboration with owners of shopfront properties or owners of malls. MR. D.I.Y. stores offer a wide selection of SKUs across five major categories, namely hardware; household and furnishing; electrical; stationery and sports equipment products; and others (comprising toys, car accessories, jewellery, cosmetics and food and beverage). The Company strives to put its customers first by operating an innovative business that is flexible when it comes to providing a wide variety of products, good quality and value-for-money, holding true to the Company’s motto of “Always Low Prices”. Private Equity investor Creador backs MR. DIY Group, owning and operating over 1000 stores in Malaysia. With over 2,251 stores in 10 Asian and European markets, including Malaysia, Thailand, Indonesia, the Philippines, India, Turkey, Spain, Singapore, Brunei, and Cambodia. See here for more: Mr D.I.Y 4Q net profit rises to RM136mil, declares 0.6 sen dividend | The Star #smartdiscount #mrdiy #expansion #creador #malaysia #growth #profit #revenues #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Retail Chain Aldi Germany simplifies and modernizes shopping in its stores with self-service checkouts. The payment process is to be faster so that there are no queues at the checkout during peak hours. At the Cologne store in Germany, the modernization had an unintended effect. Soon after the introduction of the new system, it was taken out. Self-checkouts are especially popular with students. The Aldi Süd store in Niehler Kirchweg in Cologne is overcrowded at lunchtime. Due to the surrounding junior high schools and technical school, there is a commotion at the checkouts during breaks. Some people take advantage of it. It turns out that a lot of products were stolen in the store. It is said that young people bring with them more rolls and drinks than they bought. Especially items without a barcode cause blockages at checkouts during peak periods, because the code of each product has to be entered individually. Confusion quickly becomes and it is difficult to check whether everything has really been paid. The discount chain Aldi Süd has been introducing new payment systems since January. There will be at least one double cash register in all stores. This will allow two customers to be billed simultaneously by adding another freight shaft. This means that one customer can easily pay with an EC card and another purchase can be made at the same time. Cash registers receive two separate EC terminals and two receipt printers. It should also make packing a lot more stress-free. See here for more: Aldi liquidates self-checkouts due to theft (dlahandlu.pl) #smartdiscount #aldi #germany #selfcheckout #theft #cancel #drc #discount #retail #consulting #discountretail #discountretailconsulting #technology

Discount Retail Chain Aldi USA (German family owned) first put down roots in the United States back in 1976, 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. In January, the company with estimated annual sales of US$19 billion unveiled its 26th distribution center, which will supercharge the retailer’s expansion in the fast-growing Sun Belt. That same month, Dunnhumby market research agency named Aldi the No. 1 grocery leader in Price for the sixth year in a row. In an exclusive interview with Progressive Grocer, Scott Patton, Aldi’s VP of national buying, says the Aldi business model was built for these inflationary times. “Our greatest opportunity is introducing Aldi to new shoppers at a time when consumers need a tangible solution to the inflationary pressures they are feeling from every direction,” Patton notes. “Offering access to fresh foods and essential household products at incredible prices, like we have been doing for decades, is more important now than ever before. We look forward to welcoming even more new customers and earning their loyalty.” Of course, discount stores tend to perform well during times of economic pain and uncertainty, but Aldi has weathered the pandemic storm particularly well by expanding its assortment of fresh food, ramping up its digital offering, remodeling stores, curating assortments with local products and accelerating sustainability efforts, all while strictly adhering to its EDLP pricing philosophy. Fastest-growing grocer In 2017, Aldi said that it would invest $3.4 billion to accelerate store openings, with a goal of growing from 1,700 locations to a 2,500-store footprint by 2022. But the pandemic put a kink in that plan in 2020, with many of those planned openings taking a backseat to getting product on shelves and expanding contactless fulfillment options for shoppers too scared to enter physical locations. So where does that evolution stand now? “It is no secret that the pandemic created shifts in consumer shopping habits, and more specifically, how people shop,” Patton says. “But our efficient business model allows us to react in real time to meet consumer needs and preferences.” Part of that quick reaction includes leading the United States in new store openings. 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 2,270 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, Alabama, 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, Alabama, that is slated to open on March 2. Other stores in development include locations in Tampa and Callaway, Florida; Flowood and Hattiesburg, Mississippi, and in the Baton Rouge, Louisiana area. Driving all of this growth is a fervent customer base: A new report from Los Altos, California-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% YoY – 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 re-modeling 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. Omnichannel discounter 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 AldiI-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.” See here for more: Exploring Aldi's Unlimited Success With Limited Assortments | Progressive Grocer #smartdiscount #aldi #usa #expansion #love #concept #edlp #growth #success #development #sustainability #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Retail Chain Aldi Germany (German family owned) is taking the next step for animal welfare and changing its meat range! Aldi wants to completely dispense with meat from closed stables in the future. According to the Innovations in fresh meat chilled sausage and meat products are now also to follow. By 2030, these goods should only come from stables with an outdoor climate. The open buildings ensure that the animals can stand in the fresh air, get daylight and are still protected from the weather. On each meat package there is an information box on how the animals were kept. 1 meets the minimum standards of factory farming, 4 means outdoor climate stables with toys and additional exercise Almost half of the annual meat consumption is accounted for by meat and sausage products, Aldi explained. Customers can see how the animals are kept by the husbandry box on the meat packaging. In the future, there will only be the highest levels on the scale of 1 to 4. From level 3, the animals are in the outdoor climate barn, instead of indoors. At level 4, they also get even better food, toys and are allowed to run all year round. According to the discounter, a step-by-step plan is planned: ► Accordingly, goods from farming form one are to be completely dispensed with by 2025. Husbandry form one means: "stable keeping". This only corresponds to the legal minimum standards in animal husbandry. ► By 2026, one third of meat and sausage products should come from husbandry forms three and four. ► By 2030, the company is to switch completely to goods from the two higher farming methods. Agriculture Minister Cem Özdemir (57, Grünen) welcomed the step "explicitly". The market is changing, meat consumption is constantly declining and at the same time consumers want better animal husbandry. "Responding to this is a market economy," the minister said. The food retail trade is also sending an important signal to the farms "that the demand for products from more animal-friendly husbandry is increasing and money can be earned with it," Özdemir continued. All this gives the farmers a "reliable planning perspective". Meanwhile, the consumer protection association Foodwatch criticized that even with the forms of husbandry three and four, the "misery of the animals" does not change. "Millions of farm animals suffer massively from disease, injury and pain," the organization said. The form of husbandry, such as whether the animals are kept on an organic farm or conventionally, "hardly plays a role". A little more space and exercise did not protect against "pneumonia, abscesses and cannibalism". Only "complete laws for more animal health" would help. In the case of fresh meat, the gradual conversion to the higher farming methods at Aldi should also be completed by 2030. See here for more: Fleisch-Revolution bei Aldi: Discounter stellt Angebot um | Geld | BILD.de #smartdiscount #aldi #sustainability #meat #targets #reduction #foodwatch #pioneer #gruenen #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Retail Chain Lidl Netherlands (owned by the German Schwarz Group) has one in ten Dutch people shopping at their stores. This makes the market share of the discounter almost double that of Aldi, that other low-cost supermarket from Germany. Over the past fifteen years, Lidl has steadily increased its market share, from nearly 5 percent in 2008 to more than 10 percent today. What is the secret of the supermarket chain, which was founded in 1973 by Dieter Schwarz? These 6 ingredients explain the success of the Lidl formula. 1. Provide an affordable appearance It takes some getting used to when the Netherlands is introduced to Lidl in 1997. That year, the German chain opened branches in Uden in Brabant and Vriezenveen in Overijssel. It is a supermarket as we do not yet know it in our country. Yellow floors, no expensive brands and products sold out of boxes. By which Lidl means: by doing your shopping here, you are cheaper. After all, those who present themselves as a cheaper alternative do not wear expensive clothes. Market share of supermarket chains in the Netherlands (2022, NielsenIQ): Albert Heijn 37,0% Jumbo 21,5% Lidl 10,1% Plus 6,8% Aldi 5,4% 2. Use the power of simplicity Are you looking for peanut butter at Albert Heijn? There is no lack of choice. The retailer has almost thirty different brands, flavors and quantities on display on the shelf. Lidl, on the other hand, keeps it simple and comes with only two options: with and without nuts. No fuss, no fuss. It is a strategy that you see in almost all product groups. This makes shopping clear for the customer, but also beneficial for Lidl itself. Think about it: at Jumbo they deal with a range that consists of more than 30,000 products. Lidl has less than 3,000. This makes the company agile and ensures greater efficiency. For example, organizing the product flow is a lot less complicated. 3. Provide surprise in the assortment If we just talked about the power of simplicity, that does not mean that you will never be surprised at Lidl. That's what the formula does with products you don't expect one-two-three in the supermarket. Massage cushions, for example. But also cheaper laptops, vacuum cleaners or a pan set. In every edition of the action brochure, these kinds of striking non-food items are used. Lidl does this again with its own brands. For example, there is the Parkside budget drill, which was tested best by the Consumers' Association a year and a half ago. 4. Show off a product champion Lidl has been voted best supermarket in fruit and vegetables by GfK ten times. Photo: Lidl Anyone who starts a new supermarket today will receive the same advice for almost every retail expert: A-brands are needed to get traffic on the shop floor. Lidl did without it for almost twenty years, although a handful of well-known names such as Croky, Red Bull and Dr. Oetker have now been added to the range in the Netherlands. But the formula still relies heavily on its own private label. What do you do then? Making sure that there is at least one important product category in which you excel, in order to convince any doubters. That eye-catcher for Lidl became fruit and vegetables. GfK rated this department as the best in the Netherlands ten times (although Nettorama dethroned Lidl in 2022). That created confidence and a lot of curious newcomers to the store food. 5. Fully commit to sustainability In retail land it is now known, but for the average consumer it may be new: Lidl is the most sustainable supermarket of all the major players. For example, there are now 442,100 square meters of solar panels on the roofs of the 000 branches. More than 95 percent of the residual flows are reused, including the boxes on the shelf. Fruit and vegetables are no longer flown in and most vegetarian alternatives are now cheaper than meat. Moreover, Lidl was the first supermarket with waste-me-not stickers. Are products almost over the date? Then they can leave for 25 cents. For meat, fish and vegetarian 50 cents applies. Without Lidl, a company like Kipster (winner of the Challenger50 award in 2019) probably wouldn't have existed. The animal-friendly chicken farm found a partner in the supermarket who signed up for five years of guaranteed sales. Consider for a moment that the concept only existed on paper at that time. Not a single climate-neutral egg had been laid. 6. Make bold choices That partnership with Kipster can rightly be called a bold choice. And Lidl has a hand in that. Deciding things, not because the law requires it, but because you feel that the time is right. Another good example is the tobacco ban. The government announced in 2022 that supermarkets will no longer be allowed to sell cigarettes from 2024. Lidl said as early as 2018 that it would ban tobacco from the shelves, far ahead of the troops. Since the beginning of October 2021, no cigarettes are available in branches of the retailer. It's a good example of moral leadership. Moreover, these kinds of tough choices fit in with Lidl's strategy, in which it wants to make a sustainable and healthy lifestyle accessible and affordable for everyone. See here for more: Lidl in the Netherlands: 6 reasons why the supermarket is successful (mtsprout.nl) #smartdiscount #lidl #expansion #growth #netherlands #sustainability #surprise #simplicity #appearance #stores #drc #discount #retail #discountretail #discountretailconsulting

Discount Retail Chain Toujust is set to open its first store in Alès, in the Gard region, mainly selling private-label products, according to media reports. Toujust is the brainchild of Fabrice Gerber, an experienced manager in the retail trade, formerly of E. Leclerc, Système U and Aldi. It will function as a cooperative, with four main shareholders: Gerdis (Fabrice Gerber's company), RT Logistique, Mila Capital and Val Invest. In addition, Toujust works directly with suppliers to secure lower prices for shoppers. It also shares 25% of its profits with producers and suppliers directly and cuts out as many ‘middlemen’ as possible. About Toujust Significantly, there will be no intermediaries between the distributor and producers, as well as no central purchasing office, which the retailer hopes will enable it to offer reduced prices and operate a lower cost base. It plans to set up shop on the outskirts of medium-sized towns in France, with population ranging between 10,000 and 12,000. Toujust promises to offer prices up to 10% cheaper than other brands via a supplier partnership model. The store’s margin is 28%, which it uses to calculate its prices. The name Toujust is a play on the French phrase ‘tout juste’, which means ‘all fair’ or ‘just right’. Consumer prices will be at least 5 - 10% cheaper than those offered by competitors, Gerber said. The difference could be significant for some items, especially as a 2022 study showed that the same basket of goods can vary by as much as 17% depending on brand and location. Store Expansion Plans A dozen stores are set to follow in the first half of 2023, in Monéteau (Yonne), Cambrai (Nord), Lempdes (Puy-de-Dôme), Lens (Pas-de-Calais), Montauban (Tarn-et-Garonne), Terrasson (Dordogne), Saint-Quentin (Aisne), Saint-Maur (Indre) and Arbent-Oyonnax (Ain). The company plans to open approximately fifty stores by the end of the year, and 300 within five years. Each store will be spread across approximately 1,000 square metres and offer 7,500 SKUs, 80% of which will be food, including 45% in the fresh category. The company will mainly sell its own brands and rely on 100 small suppliers. It is advertising prices that are 5% to 10% lower than its direct competitors. See here for more: New low-cost supermarket in France aims to sell at up to 10% cheaper (connexionfrance.com) #smartdiscount #toujust #france #startup #expansion #store #suppliers #drc #discount #retail #consulting #discountretail #discountretailconsulting

Discount Retail Chain Netto (owned by the Danish Salling Group) takes over 21 remaining stores and store projects from Aldi, which leaves Denmark, and thus Netto approaches 550 Danish stores. Aldi sold 114 stores of its 188 stores to discount retailer Rema 1000, beginning of December 2022. The newly acquired stores and locations are distributed throughout Denmark from Rødby in the south to Skive in the north, and from Esbjerg in the west to Kastrup in the east. The plan for the existing Aldi stores is that they will be transformed into Netto's latest store concept called 'Netto 3.0', says Director of Netto Denmark Braw Bakir. "We look forward to reaching even more customers and continuing the growth we have seen in the past years. This is particularly true in neighbourhoods in, for example, The Netherlands. Aarhus and Esbjerg, where we are not today, but are now moving in with the market's strongest discount offer", says Braw Bakir. When the last Aldi closes, the German-owned chain completely leaves Denmark. The transaction is subject to approval by the competition authorities before Netto can formally take over the 11 existing stores and 10 projects that are either in progress or will be realized. The refurbishments will begin as soon as the deal is approved and will then take place on an ongoing basis. The same applies to the work on the projects that will be taken over from Aldi, says Braw Bakir. "We are awaiting the authorities' approval, but we are looking forward to the prospect of getting started. The new stores and projects fit well into Netto's existing store network, which thus reaches 549 stores in total. The agreement means, among other things, that we will need more new colleagues, and here it is natural that we talk to the now former Aldi employees to see if there is a match," says Braw Bakir. Lidl will take over 4 stores and COOP 1 store remaining Aldi stores. See here for more: Netto acquires stores from Aldi | Salling Group (ritzau.dk) #smartdiscount #denmark #netto #aldi #acquisition #stores #drc #discount #retail #consulting #discountretail #discountretailconsulting

Hypermarket retailer Lenta, one of Russian's food retail leaders, is testing a discount format, Lenta Ekonom. After X5 with Chizhik and Magnit with My Price, also Lenta understands that adding a discounter to their portfolio is necessary to keep up with the market developments in Russia. The discount store "Lenta Ekonom" was launched next to Lenta hypermarket in St. Petersburg on Energetikov Avenue. In the period between February - April the company will continue to implement a number of changes, based on feedback from customers and sales density indicators. "We are testing a number of innovations in stores with low operating performance in order to find the best options for reducing operating costs and increasing sales per square meter. We plan to build an optimal assortment matrix and offer customers a more favorable pricing model by reducing operating costs. The launch of the pilot is our response to the needs of the customer, who is inclined to save money and choose goods in lower price segments, "said Vladimir Sorokin, CEO of Lenta. Source: Подробнее на Retail.ru: https://www.retail.ru/news/lenta-testiruet-novyy-format-gipermarketov-7-fevralya-2023-225457/ #lenta #newdiscountformat #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy

In 2022, Aldi Spain avoided to emit more than 3,296 tons of CO2 emission into the atmosphere, thanks to the use of solar energy at their stores. Within the framework of Aldi's sustainability strategy, they closed last year with more than 17,500 photovoltaic panels, installed at 170 stores, achieving an electric self-consumption of more than 13 million kWh. Source: Aldi Spain #spain #aldi #sustainability #environment #solarenergy #smartdiscount #discountfoodretail #discounter #discount #foodretail #retail #drc #discountretailconsulting #retailconsulting #consulting #consultancy