Lidl And Kaufland 2015: Ramping Up, Relentless Rise From Copycat To Innovator
Release date: January 6th, 2015 (179 pages)
PDF/Powerpoint format. Price: GBP1,990.00
LIDL: KEY QUESTIONS
How big is Lidl in each respective country? What is its market share? How big will the retailer become?
How high are Lidl’s and Kaufland’s sales densities? Which are the most successful markets? In which markets is Lidl stronger than Aldi?
Where is the discounter furthest ahead in changing customer perceptions - moving its brand image from low cost to quality and freshness?
Where is the retailer most innovative with store refreshes? Will we see a convenience fascia stretched over two floors? What are Lidl’s plans to propel the outlet forward? What changes is the retailer making in store to drive greater footfall, increase loyalty and frequency?
How big are sales uplifts generated by store updates on average?
How much do fresh ranges account for in Lidl? How is this different from market to market?
What is happening with Lidl’s US expansion?
How big is Lidl’s online operation in Germany? Is this a blueprint for the rollout in the other markets? How does Lidl manage the transition to becoming multichannel?
What is the percentage of FMCG A brands of total SKUs in Lidl? Is this different from market to market?
What is Schwarz private label strategy? What is the main driving force behind vertical integration at Lidl? Unique private label? Cost benefits? Secure supply?
What are the key benefits of Lidl’s international sourcing strategy? Where does this fall short? What about Deluxe?
How much crossover is there between the two businesses, Kaufland and Lidl? How will this change in future?
What are the key differences to Aldi?
What innovative promotions, pricing strategies, store formats, expansion strategies and brand extensions will the discounter go for next? How big is Schwarz’s pledged investment for 2015?
KAUFLAND: KEY QUESTIONS
Is Kaufland the future of the hypermarket?
How does Kaufland manage the introduction of small scale private label new product developments? Why is shopper insight crucial at Lidl but not to the same extent at Kaufland? What exactly is the concept of Warendruck?
How big is Kaufland in each respective country? What is its market share? How big will the retailer become? How many stores will the retailer operate from in Germany? What about the CEE operations?
Why can Kaufland generate sales in locations others can’t? How can the retailer take over disused Karstadt buildings or beached whales of the competition and make them work?
What is the future location for Kaufland, is it the inner city? Will it compete with Lidl?
Why has there been a slowdown in Germany at Kaufland in 2014? What is the retailer doing about it?
What are the plans for Kaufland?
How does Kaufland reduce its input costs? How is the hypermarket leveraging its scale in the supply chain to drive efficiencies through? Is this a model for other markets? Is it a model for Lidl? By how much can the retailer reduce prices by leveraging its scale in the supply chain?
What percentage share will Schwarz take of retailing in its respective markets?
What does the German example suggest?
Table of contents
|Introduction: the concept||p24|
|Concept: product centricity, relentless process optimisation||p25|
|Concept: modernising one single format, internationalisation, buying power||p26|
|Concept: online, Schwarz is Germany’s and Europe’s biggest retailer||p27|
|A winning format: The Discounter – success factors||p28|
|The context: EU Grocery Retailing in 2014||p29|
|Grocery sizes: EU 27, 2009-2013 in ‘000 €bn, e||p30|
|Grocery sizes: shoppers cut back, shop around and go to hard discounters||p31|
|Grocery sizes: EU 27, 2008-2013 growth in %||p32|
|Grocery sizes: EU 27 growth 2008-13 in %||p33|
|Grocery per capita sizes: EU 27 in 2013 in €, from Finland to Bulgaria||p34|
|Hard discounters: Lidl in 2015||p35|
|Lidl: the copy cat overtaking Aldi, the original||p36|
|Lidl: the brands equilibrium, Kaufland the growth driver in CEE||p37|
|Lidl: OSA, Warendruck, operational independence for Lidl and Kaufland – until now?||p38|
|Lidl: category management, Kaufland the most successful EU hypermarket operator||p39|
|Lidl: always the second mover, threat to Tesco, more potential for Kaufland||p40|
|Lidl: all about expansion, solely focused on Europe||p41|
|Recent developments: Lidl in 2014||p42|
|October 2013: first UK TV advert, Slovakia, Switzerland, Sweden, DE and Be expansions||p43|
|Nov/Dec 2013: recipe generator, Finnish expansion, Italian conversion||p44|
|January 2014: successful Christmas, health innovation in UK checkouts||p45|
|Jan/Feb 14: Coca-Cola delisting, Italian promotion, home-grown Swedish tomatoes||p46|
|March 2014: Irish gains, change at the top, DHL contract extension, Swedish trial||p47|
|March/April 14: expansion, store format innovation, £220mn UK expansion drive||p48|
|July 2014: Lidl UK reveals tax bill for first time, pop ups in Belgium||p49|
|July 2014: Lidl to enter Australia?||p50|
|August 2014: new fashion range launch in UK||p51|
|August 2014: Danish expansion, modernising UK marketing, Now or Never in NE||p52|
|September 2014: first UK brand campaign, ninth distribution centre||p53|
|September 2014: e-commerce debut in NE, h&b added to German online store||p54|
|October 2014: expansion in Sweden, Lidl mocks Sainsbury’s and Morrisons||p55|
|November 2014: UK Christmas advert, menswear, Netto’s return, new store format||p56|
|November 2014: Lidl’s toy offer for Christmas rush, Northern Ireland expansion||p57|
|December 2014: Lidl launches Deluxe online in Spain||p58|
|Financials and KPIs: Lidl in 2014||p59|
|Schwarz: sales 2008-13, growth, domestic share of total, LFL growth||p60|
|Schwarz: Germany’s biggest retailer – and on track to become the EU’s||p61|
|Lidl: the synergy challenge, structural efficiency rather than widening the ranges||p62|
|Schwarz: benchmarks, sales, stores, space, average space, sales densities in 2013||p63|
|Lidl: the most internationalised retailer in the EU||p64|
|Lidl: countries, benchmarks, net sales, stores, space, sales densities in 2013 1/2||p65|
|Lidl: countries, benchmarks, net sales, stores, space, sales densities in 2013 2/2||p66|
|Lidl: tackling the 10,000 stores barrier again, 10 million sq m under the Lidl banner||p67|
|Lidl: adjusting the store estate in Germany, clear KPIs||p69|
|Lidl: recycling old sites, stretching footprints in Germany||p70|
|Lidl: stopping self cannibalisation in Germany||p71|
|Lidl: international markets||p72|
|Lidl: 2014, sales per country in €m, market shares of total grocery universe in % ½||p73|
|Lidl: 2014, sales per country in €m, market shares of total grocery universe in % 2/2||p74|
|Lidl: France, private label “Saveurs des nos Regions” frenchifies the discounter||p76|
|Lidl: French wine, German beer, HQ move, advertising campaign||p77|
|Lidl: every store renovation in France generates a sales increase of 30-40%||p78|
|Lidl: Lidl momentum disrupting grocery order in the UK||p80|
|Lidl: wider choice, store design improvements||p82|
|Lidl: creative marketing||p83|
|Lidl: UK, fresh accounts for 40%, 40 stores to follow in 2014||p84|
|Lidl: ”Italianisation” of Lidl Italia||p87|
|Lidl: a market of growing importance||p90|
|Lidl: launching Deluxe online, staying through the tough times||p91|
|Lidl: extension of fresh, regional suppliers||p92|
|Lidl: other countries||p93|
|Lidl: 30 new Polish stores, €100m Finland investment, Danes trying something new||p94|
|Lidl: Switzerland – market entry lowering price points of the entire retail universe||p95|
|Lidl: Switzerland – waiting for the second DC||p96|
|Lidl: location, format and expansion strategy||p97|
|Lidl: revamping the store format towards a convenience fascia, focus on fresh and food||p98|
|Lidl: low branded SKU count, the cash desk innovation||p99|
|Lidl: drawbacks of the new model, analysis, cost drivers, space considerations||p100|
|Lidl: optimising check out||p101|
|Lidl: tunnel scanners in Sweden||p102|
|Lidl: self checkout in UK, healthy food check outs||p104|
|Lidl: new store formats||p105|
|Lidl: new formats in Belgium, outlet store and inner city convenience||p106|
|Lidl: climate friendly store in Brussels translates into huge operational savings||p107|
|Lidl: online relaunch||p108|
|Lidl: online operations, huge branded non food presence online, international||p109|
|Lidl: tackling the non food issue, easier at Lidl than at Kaufland||p110|
|Lidl: online relaunch in Germany, coffee world, wine, pet foods, nappies etc||p111|
|Lidl: online turnover figures in Germany||p112|
|Lidl: online health & beauty launch, private label and FMCG A brands, multichannel||p113|
|Lidl: the future potential, h&b online||p114|
|Dia: the first discounter to launch a click & collect service||p115|
|Dia: cheaper than in store, faster than drives and €30 average baskets||p116|
|Dia: catering to pedestrians, trial widened out, France only for now||p117|
|Lidl: brands in discounters||p118|
|Lidl: going soft and widening the SKU count – up to a degree||p119|
|Lidl: core strength of private label proposition, a clear limit for brands||p120|
|Lidl: private label segmentation and vertical integration as key strategic objective||p121|
|Lidl: the premiumisation strategy||p122|
|Lidl: the Coca Cola wars in Germany, delisting … for a few days||p123|
|Lidl: Coke losing €150mn in sales through the boycott, Lidl losing shoppers||p124|
|Lidl: the Coca Cola wars and Lidl’s warning to FMCG||p125|
|Lidl: Pan-European promotion on premium wines, €349 per bottle||p126|
|Lidl: range extension into wine – going for premium and luxury||p127|
|Lidl: wine driving footfall to online, becoming multichannel, copying Aldi’s playbook||p128|
|Lidl: using toys as footfall draw and to shift quality perceptions||p129|
|Lidl: cleaning up promotional activity, Deluxe reigned back||p130|
|Lidl: concentrating on the fastest sellers, cost of Deluxe missteps||p131|
|Lidl: vertical integration||p132|
|Lidl: vertical integration achieved in soft drinks, WIP in confectionery, the PET system||p133|
|Lidl: vertical integration in fruit and vegetables, DCs built, owned and run by Lidl||p134|
|Lidl: even bigger suppliers completely out of capacity when dealing with Lidl||p135|
|Lidl: expansion to the US||p136|
|Lidl: plans shelved due to new board composition||p137|
|Lidl: plans shelved||p138|
|Lidl: outlook & forecasts||p139|
|Schwarz: one format at a time, cost control, lean processes, reduced complexity||p140|
|Schwarz: online threat, website as a template for the future, drive solution potential||p141|
|Lidl: €4.0bn expansion investment, renewing half the store network||p142|
|Lidl: the expansion opportunity, strengthening the core, the EU’s biggest retailer||p143|
|Kaufland: the stand out hypermarket operator in the EU||p144|
|Kaufland: Schwarz’ best innovation? Saturation in Germany?||p145|
|Kaufland: SKU range, private labels, online retailing, 30th anniversary||p146|
|Recent key developments: Kaufland in 2014||p147|
|Oct 13 – Nov 14: domestic ad campaign and activities abroad||p148|
|Financials and KPIs: Kaufland in 2014||p150|
|Kaufland: countries, benchmarks, sales, stores, space, sales densities in 2013||p151|
|Kaufland: sales slowdown in Germany, process optimisation, change management||p152|
|Kaufland: process re-organisation leads to staff disquiet||p153|
|Kaufland: still in much better shape than the competition||p154|
|Kaufland: 2014, sales per country in €mn, market shares of total grocery universe in %||p155|
|Kaufland: Czech Republic and Romania, shrinking the store size||p156|
|Kaufland: Poland, Slovakia, Bulgaria and Croatia||p157|
|Kaufland: location, format and expansion strategy||p158|
|Kaufland: store modernisation||p159|
|Kaufland: experimenting with self check out and updating the format||p160|
|Kaufland: continued expansion in Germany, aiming for 800 stores||p161|
|Kaufland: looking east once again||p162|
|Kaufland: betting on the future of the hypermarket||p163|
|Kaufland: continued expansion around DC and integrated production facilities||p164|
|Kaufland: taking the competition’s duds and opening completely new sites||p165|
|Kaufland: private label, vertical integration and logistics strategy||p166|
|Kaufland: K-Classic, a hugely successful private label line, vertical integration||p167|
|Kaufland: network effects between Kaufland and Lidl||p168|
|Lidl/Kaufland: supplier relationships, no traditional category management||p169|
|Lidl/Kaufland: benefits of the sourcing model, supply chain collaboration||p170|
|Kaufland: launching a private label product at Kaufland, simplicity, simplicity, simplicity||p171|
|Kaufland: logistics strategy||p172|
|Kaufland: the logistics secret, the potential of the return trip, eradicating empty runs||p173|
|Kaufland: higher capacity utilisation and lowering overall costs, supplier collaboration||p174|
|Kaufland: outlook & forecasts||p175|
|Kaufland: reason behind the success, slow and steady adaptation, first class execution||p176|
|Kaufland: synergies across Lidl and Kaufland, board exits||p177|
|Kaufland: kick-starting domestic growth, expansion, new formats||p178|