LiDestri Foods’ Post

ALDI USA is having a moment. Well, probably more than a moment given how much the chain has grown in the US over the past few years. It's tempting to think that this is completely related to inflation and the quest for customers to find lower prices. And, certainly, that is an unashamed part of Aldi's appeal. But our data show high satisfaction levels in areas other than price among customers who have moved over to Aldi. Ease of shopping experience, quality, and interesting products, are all areas where Aldi performs well. This makes the proposition sticky. Consumers who came for price are not simply going to switch back to other grocers once inflation and their financial burden eases. More of my thoughts in this article from the Daily Mail... https://lnkd.in/gW3x28AS #retail #retailnews #grocery #supermarkets #valueretail

ALDI WIN THE GAME AND WRITE THE RULES! Tesco price match Aldi UK Asda price match Aldi & Lidl (whichever is cheaper) Sainsbury's price match Aldi Morrisons reduce prices to get closer to Aldi Waitrose & Partners price match Tesco, who price match Aldi Ocado Group price match Tesco, who price match Aldi The Co-Op aim to be 'competitive locally', meaning they compare prices to Tesco and Sainsbury's, who price match Aldi. All (grocery) pricing roads lead to Aldi (in the UK). Aldi therefore hold a huge amount of power. Here's the thing though, Aldi have a different business model to Tesco, Sainsbury's etc. Tesco's operating margin for example is 1.52%. Sainsbury's operating margin is 3.02%. Aldi's (which is not publicaly available) is likely to be closer to 6-7%. Aldi has a different supply and value chain to traditional big box retailers. Aldi has a limited range environment in their stores. Aldi focus more on own label than branded products. Aldi drive down cost by buying the same range in massive bulk for all of their stores. Aldi are prepared to lose money on some items in order to encourage purchase on non-food and other special items. Aldi is being price matched despite having a much higher profit margin overall. In the race to being cheapest therefore, Aldi can always win. But, here's the thing, for customers price isn't the only deciding factor. Range choice is a deciding factor. Store proximity is a deciding factor. Quality is a deciding factor. Product Availability is a deciding factor Home delivery availability is a deciding factor. Convenience is a deciding factor. Technology, shopping experience, locality, store format, collection, car parking, additional services and staff friendliness are all deciding factors. Retailers could focus on all these other deciding factors. They could, but instead they advertise themselves based on how close their prices are to Aldi, making less margin on best selling items at the same time. Aldi don't sacrifice their margin, but their competitors do. 25 years ago the grocery 'establishment' didn't want to see Aldi as a threat or a serious challenger. Today Aldi is not only the winner of the game but also the writer of the rules. Well done Aldi. #retail #grocery #groceryretail #groceryindustry #food #supermarket #price picture credit - https://lnkd.in/ezWacNTJ

Interesting - didn't know the world's first discount grocer was Aldi. Germans are famously stingy when shopping for food. No wonder that it was two German brothers, Theo and Karl Albrecht, who in the 1950s founded Aldi, the world’s first discount grocer. In 1961 they carved up the European market between Aldi Nord, led by Theo, and Aldi Süd, headed by Karl. But despite pioneering the business model, the two Aldis are having their lunch eaten in Europe by Lidl, a younger rival whose sales on the continent exceed their combined total. Aldi Süd, in particular, thinks it can get its own back across the Atlantic. According to JLL a property consultancy, it has been opening around 100 shops a year in America, faster than any other retailer—including Lidl. And Aldi Nord (which owns Trader Joe’s supermarkets but does not run Aldi shops there).

Aldi UK announced plans for a 50% increase in the number of stores as it unveiled its 1,000th store. The German discount retailer said it now eventually wants 1,500 stores across Britain, compared to its previous target of 1,200. Achieving its 1,500-store target would mean more outlets than Sainsbury's, which is currently the UK’s second-largest grocery chain by market share, has 600 #supermarkets and around 800 convenience stores. #Aldi is currently the fourth largest grocer in the UK, with a 10.2% market share, behind Asda which holds 13.7% of the market. #Tesco remains the market leader with close to a 30% share. Giles Hurley, the chief executive of Aldi UK and Ireland, said: “Our popularity is growing, and there is huge demand for people to have an Aldi store near to them to increase shoppers’ access to our unbeatable prices. More at #Proactive #ProactiveInvestors http://ow.ly/NlTq104TwU5

Morrisons challenges Aldi and Lidl with plans to open 400 new convenience stores Morrisons is set to open 400 more of its Morrisons Daily convenience stores as part of plans to take on Aldi and Lidl. The grocer wants to hit a total of 2,000 smaller stores in 2025, although it has not yet revealed a list of locations, the Mirror reported. The news comes as Morrisons delivered a “solid quarter of progress” with like-for-likes excluding fuel and VAT up 4.1% in its second quarter as the retailer cut down debt by 35% on peak levels. he group, which was snapped up by US private equity firm Clayton, Dubilier & Rice in 2022, reduced its debt levels to £4bn from a peak of around £6.2bn. In its latest results CEO Rami Baitieh flagged that its Aldi and Lidl Price Match initiative, which launched in February, had got off to a “great start“ and is “giving customers increasing confidence in the competitiveness of our prices across the shop”. Convenience has remained an “important and strongly growing” channel for the retailer, bolstered by the completion of the McColl’s conversion programme, which has led to over 1,600 Morrisons Daily convenience stores operating across the country as it targets 2,000 locations by 2025. #morissons #aldi #lidt #retail #supermarket #grovery #convenience #Competition #customerexperience #UK

It’s an exciting time for Aldi UK, whose discount supermarket empire continues to grow. Certainly in the UK, the company is sitting pretty having posted record annual sales of US$18.83 billion for the 12 months up to December 2022. This comes amid the ongoing cost-of-living crisis, which Aldi says has “changed the way Britain shops for groceries” and resulted in one million more customers visiting its stores. Last year, the German chain – which opened its first UK store back in 1990 – overtook Morrisons to become the country’s fourth-largest supermarket, signalling a significant departure from deep-rooted shopping habits. “We’re seeing a new generation of savvy shoppers who’ve turned their back on traditional, full-price supermarkets in favour of transparent, low prices, which is what we’re famous for,” says Giles Hurley, CEO of Aldi in the UK & Ireland. “That’s why we’re still welcoming more and more customers through our doors – people who come to us for our low prices but stay for award-winning quality." #Retail #Growth #Expansion

🇬🇧 Aldi overtakes Asda Discount Retail Chain Aldi UK's successful ascent over Asda, positioning itself as the third-largest grocery retailer. According to Total Till figures from NIQ, over the 12 weeks to 23 March, Asda's market share stood at 11.7%, while Aldi's surged ahead to 12.2%. Notably, Asda encountered a period of diminished performance, with their sales seeing a mere 0.8% growth. This underperformance has been attributed to the challenges stemming from new ownership and the weight of heavy debt post-acquisition by the Issa brothers and TDR Capital, a concern echoed by leading retail analyst Clive Black of Shore Capital. Asda has expressed determination to regain ground, and as the industry data fluctuates, it's imperative for branded suppliers to realign their customer portfolio strategies to accommodate the impact of Aldi and Lidl's continued growth. These developments elevate concerns about how retailers like Asda and Morrisons might grapple with their escalating debt burdens in the face of Aldi's and Lidl's persisting expansion. Read more: https://lnkd.in/es6crsDq #smartdiscount #asda #aldi #uk #position #overtakes #marketshare #drc #discount #retail #consulting #discountretail #discountretailconsulting #retailconsulting #google

Lidl Gains Ground as Aldi's Market Share Dips The latest grocery market share data shows Lidl is continuing its rapid ascent in the UK, while rival discounter Aldi has hit a slight speed bump. Lidl's sales surged by an impressive 9.5% over the past quarter, allowing it to chip away at the larger Aldi's market dominance. As a result, Aldi's share of the grocery sector slipped from 10.8% to 10.4%. This continues the broader trend of the two German discount chains collectively gaining around 800,000 new customers so far this year as cost-conscious shoppers seek out cheaper alternatives. Aldi and Lidl are now rapidly approaching a combined 20% share of the UK grocery market. While Aldi has been crowned the UK's cheapest supermarket for three consecutive years, Lidl's current momentum suggests the fierce battle for discount grocery supremacy is intensifying. Aldi has doubled down on its low price promise, but it remains to be seen if that will be enough to fend off Lidl's aggressive expansion across the country. Lidl's Ambitious Real Estate Expansion Plans To capitalize on its 8% market share and continue growing, Lidl is planning an ambitious expansion of hundreds of new stores across the UK[1][5]. This will create thousands of new jobs as the discounter aims to make its low-cost groceries even more accessible. Lidl is actively seeking prominent sites of 1.5 acres for standalone stores or up to 4 acres for mixed-use schemes. Ideal locations have easy access, strong foot traffic, space for 18,000-26,500 sq ft stores with over 100 parking spots. The company is open to freehold, leasehold or long leaseholds. To facilitate this growth, Lidl has invested heavily in infrastructure like its new global warehouse hub in Luton and expansions to distribution centers in Bridgend and Belvedere. The discounter is even offering finder's fees up to 1.5% of the purchase price to secure new sites. While Lidl had initially targeted 50 new stores per year, it has scaled back to around 25 annually to focus more on expanding warehouse capacity. However, the company states it sees "no ceiling" on its growth ambitions in the UK. The rise of Aldi and Lidl is putting immense pressure on traditional supermarket chains to keep prices low amidst the cost-of-living crisis. As the discounters close in on a 20% combined market share, the competitive landscape is shifting rapidly in the UK grocery sector.

Aldi have cut their prices again - on circa 25% of their range. This will help them to consolidate their position as Britain’s 4th biggest supermarket. This follows on from price cuts by Morrisons - who they have displaced in the Big 4. Whilst Aldi can sustain such a move, Morrisons must be careful not to cut prices too deeply at a time when - if anything - they need to grow margin. Rather than competing on price, which is a battle they cant win against the discounters, they must look for ways of differentiating themselves, such as renewing their past emphasis on quality fresh food. Focus exclusively on price will simply result in a race to the bottom.. Thanks to This Is Money and the Daily Mail for the opportunity to comment in this piece on Aldi’s price cuts here: https://lnkd.in/ehB2ZVn3 #aldi #morrisons #thisismoney #dailymail #retail #grocery #jdmretail