 | ALDI SUED 2019Release date: May 10th, 2019 (112 pages) PDF/Powerpoint format. Price: GBP919.00 |
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 |
