ALDI SUED 2019

ALDI SUED 2019


Release date: May 10th, 2019 (112 pages)
PDF/Powerpoint format. Price: GBP995.00

Abstract

Changes to the business model in Germany will be replicated abroad,
so what does the listing of FMCG A brands mean for Aldi? On the
negative side, costs and complexity have gone up considerably. The
discounter has to spend much more on replenishment, category
management and buying and has started to use SAP to analyse its
business processes and shoppers. It has also meant that Aldi has
become price comparable for the first time and is being challenged by
the promotions of the competition.
Now the retailer has reached a point where Aldi can not afford the
listings of brands on a permanently lower level (around 5%) any more.
Instead Aldi will invest much more in promotions and move towards a
high/low model. (It should be noted that the private label ranges will still
follow the EDLP model).
On a more positive note, there is great potential to raise more synergies
with Aldi Nord on both private labels and brands, from buying to
advertising and promotions, and great potential in international.
Looking ahead, the question is how many of the FMCG A brands will still
be on Aldi’s shelves in 5 years time?

Table of contents

Executive summary p9
Executive summary: Aldi Sued 2019 Germany, FMCG A brands p10
Executive summary: wide ranging changes to the model p11
Executive summary: USA set to become the biggest market soon? Online p12
Executive summary: UK, breaking into the big 4? Brexit and online p13
Executive summary: China, Italy, store of the future, brands p14
The Concept p15
The concept: product centricity, relentless process optimisation p16
The concept: modernising one single format, internationalisation, buying power p17
A winning format: The Discounter – success factors p18
The concept: adaptability, agility, online opportunity, optimisation and efficiency p19
The concept: Aldi Sued expansion p20
Aldi Sued p21
Aldi: A completely underestimated business model p22
Aldi: Simplicity, simplicity, simplicity – fine tuning a single format over decades p23
Aldi: Efficient layout and product presentation and the all important SKU count p24
Aldi: Lean SKU count means bigger buying power than Wal-Mart p25
Aldi: Supplier relationships and the quality focus p26
Recent key developments p27
March 2018: Aldi buys dairy brand in Hungary, opens another six stores in Italy p28
March 2018: Aldi stores in China? Expanding online grocery in the USA p29
April 2018: taking share in Germany, due to brands and new listings p30
May 2018: Aldi Sued is opening its 1,000th store of the future in Germany p31
June 2018: tests LPG trucks, rising staffing costs in Germany p32
July 2018: Aldi is harmonising ranges in Germany p33
August 2018: builds fueling stations for electric cars p34
August 2018: Aldi is ramping up fresh selection by 40% in the USA p35
August 2018: US curbside pickup, Manhattan Associates warehouse software p36
August 2018: widening its business footprint in China p37
September 2018: tackling plastic waste, gas station collaboration in Germany p38
September 2018: hiring drive in US expansion, trialling e-trucks in Germany p39
September 2018: optimises buying operations in DE, Instacart partnership in USA p40
October 2018: Aldi sales exceed £10bn for first time in UK and Ireland p41
October 2018: lists FMCG A baby brand, UK online grocery delivery - Home Run p42
October 2018: Aldi is creating an EU wide buying alliance for fruit and veg p43
November 2018: Aldi launching baby food, tests new store design in Germany p44
December 2018: opens 8 UK stores on same day, new store concept in Switzerland p45
December 2018: subsidiary New Coffee supplies US stores, tackling plastic waste p46
January 2019: Aldi UK record Christmas week, launches vegan burgers in UK p47
February 2019: Aldi changes marketing strategy, Wolfgang Joop homewares in DE p48
February 2019: Aldi starts to readjust its promotions policy in Germany p49
February 2019: Aldi Sued’s strong growth in Italy, 200th store in Switzerland p50
March 2019: Price war between Aldi and Lidl in Germany p51
Financials and KPIs p52
Aldi: The original – split into two, an organising principle to manage complexity p53
Aldi: Benchmarks, sales densities, Sued ahead of Nord, profits and margins p54
The Data p55
Aldi Sued: Total Sales by country, 2014-2020f, in €bn p56
Aldi Sued: Total Sales Growth by country, 2014-2020f, in % p57
Aldi Sued: Total Stores by country, 2014-2020f p58
Aldi Sued: Total Stores Growth by country, 2014-2020f, in % p59
Aldi Sued: Total Sales per Store by country, 2014-2020f, in €m p60
Aldi Sued: Total Sales per Stores Growth by country, 2014-2020f, in % p61
Aldi Sued: Total Selling Space by country, 2014-2020f, in m sq m p62
Aldi Sued: Total Selling Space Growth by country, 2014-2020f, in % p63
Aldi Sued: Average Store Space by country, 2014-2020f, in sq m p64
Aldi Sued: Average Store Space Growth by country, 2014-2020f, in % p65
Aldi Sued: Sales Densities by country, 2014-2020f, in €/sq m p66
Aldi Sued: Sales Densities Growth by country, 2014-2020f, in % p67
The SKU Data p68
Aldi Sued: SKU count by country, 2015-2020f p69
Aldi Sued: SKU Count Growth by country, 2015-2020f, in % p70
Aldi Sued: Sales per SKU by country, 2015-2020f in € p71
Aldi Sued: Sales per SKU Growth by country, 2015-2020f, in % p72
Aldi Sued: Number of branded SKU by country, 2015-2020f p73
Aldi Sued: Number of branded SKU Growth by country, 2015-2020f, in % p74
Aldi Sued: Sales of branded SKUs by country, 2015-2020f in €m p75
Aldi Sued: Sales of branded SKU Growth by country, 2015-2020f, in % p76
Aldi Sued: Sales share of branded SKUs by country, 2015-2020f in % p77
Germany: Aldi widens ranges, SKU count almost on Lidl level p78
Germany: Aldi extending SKU range to record levels p79
SKU Analysis: sales potential of a global brand in Aldi, the 80/20 principle p80
SKU Analysis: estimates for Coke, Fererro, Haribo, Nivea et al p81
FMCG A Brand Strategy p82
Strategy: Aldi and FMCG A brands - how long will this alliance last? p83
Strategy: Aldi and FMCG A brands – 9 reasons to be sceptical p84
Strategy: the reaction from the competition, margin destruction p85
Recommendations: what FMCGs should do, when listing at Aldi p86
Recommendations: Who are the winners and the losers from Aldi’s strategy? p87
Recommendations: How can other retailers react? p88
Aldi EDLP/promotions change p89
Strategy: strategy change from pureplay private label to FMCG A brands listings p90 Strategy: Aldi uses tactical promotions for FMCG A brands p91
Strategy: Aldi uses tactical promotions for FMCG A brands p92
Germany: Aldi considers discounting and moving away from EDLP p93
Germany: Aldi Sued is relaunching its private label ranges p94
UK: store pictures, Mamia branded displays p95
Germany: Aldi discounting permanently listed FMCG A brands in promotions p96
Future store strategy p97
Germany: Aldi Sued showcases new Frankfurt store p98
Germany: Aldi Sued remodeled store of the future Frankfurt p99
Germany: Aldi Sued Frankfurt store pictures p100
Germany: Aldi Sued in convenience stores push, to trial new format p101
May 2018: Aldi Sued is opening its 1,000th store of the future in Germany p102
November 2018: tests new store design in Germany p103
November 2018: store pictures, latest version bake off station p104
Outlook: Quo vadis Aldi? p105
Outlook: Quo vadis Aldi? p106
Sources p108
A bit more on ResearchFarm p110
Chart 1: The Discounter Success factors p18
Table 1: Aldi Sued: Total Sales by country, 2014-2020f, in €bn p56
Table 2: Aldi Sued: Total Sales Growth by country, 2014-2020f, in % p57
Table 3: Aldi Sued: Total Stores by country, 2014-2020f p58
Table 4: Aldi Sued: Total Stores Growth by country, 2014-2020f, in % p59
Table 5: Aldi Sued: Total Sales per Store by country, 2014-2020f, in €m p60
Table 6: Aldi Sued: Total Sales per Stores Growth by country, 2014-2020f, in % p61
Table 7: Aldi Sued: Total Selling Space by country, 2014-2020f, in m sq m p62
Table 8: Aldi Sued: Total Selling Space Growth by country, 2014-2020f, in % p63
Table 9: Aldi Sued: Average Store Space by country, 2014-2020f, in sq m p64
Table 10: Aldi Sued: Average Store Space Growth by country, 2014-2020f, in % p65
Table 11: Aldi Sued: Sales Densities by country, 2014-2020f, in €/sq m p66
Table 12: Aldi Sued: Sales Densities Growth by country, 2014-2020f, in % p67
Table 13: Aldi Sued: SKU count by country, 2015-2020f p69
Table 14: Aldi Sued: SKU Count Growth by country, 2015-2020f, in % p70
Table 15: Aldi Sued: Sales per SKU by country, 2015-2020f in € p71
Table 16: Aldi Sued: Sales per SKU Growth by country, 2015-2020f, in % p72
Table 17: Aldi Sued: Number of branded SKU by country, 2015-2020f p73
Table 18: Aldi Sued: Number of branded SKU Growth by country, 2015-2020f, in % p74
Table 19: Aldi Sued: Sales of branded SKUs by country, 2015-2020f in €m p75
Table 20: Aldi Sued: Sales of branded SKU Growth by country, 2015-2020f, in % p76
Table 21: Aldi Sued: Sales share of branded SKUs by country, 2015-2020f in % p77