Aldi Nord 2019

Aldi Nord 2019


Release date: June 8th, 2019 (106 pages)
PDF/Powerpoint format. Price: GBP995.00

Abstract

• Currently Aldi and Lidl generate growth, measured in billion dollars, that only online players achieve. Already in the global Top ten, the discounters will climb up higher in the rankings. This has major implications for suppliers, competitors and the wider
industry.
• Aldi/Lidl are the only grocery players expanding with bricks and mortar (especially when taking an international perspective). Their new store locations are moving into convenience/inner city spaces, arguably the right future format.
• As competitors build out their online offerings and invest, Aldi and Lidl attack their b&m proposition, from which the competitors fund their digital transformation. This increases their competitors’ margin pressure and leads to overall price deflation in the wider market.
• What does this mean? As the industry becomes more concentrated and consolidated (M&As, bankruptcies) for suppliers only a number of key accounts will be left standing (big 4/big 3 etc). The more this happens the more influential the discounters
become as an alternative route to market.
• As Aldi/Lidl lose the cheap and cheerful tag, shopper perceptions change. This is pushed further along by the discounters’ move to quality, premium private label, fresh/organics.
• Due to their relentless expansion Aldi and Lidl have gained a wide footprint, ideal for global promotions. If a FMCG giant wants to push through a promotion in the entire EU and US/Australia – the only available avenues are Amazon/Alibaba or Aldi/
Lidl due to their massive reach, and simplicity inherent in the business model. Both discounters can get product on to shop floors at rapid speed, if required (e.g. Lego promotion before Christmas).
• The discounters benefit from their trading up strategies, lowering FMCG inhibitions to damage their brand perception by a listing, their excellent logistics set-ups and are also attractive to FMCGs due to them both competing against each other.
• This means the discounters will become more attractive to manufacturers as a new channel (quite apart from the fact that they will guarantee massive volume sales, because of their SKU level sales).

Table of contents

Executive summary p9
Executive summary: Aldi Nord – first ever losses in Germany p10
Executive summary: Aldi Nord – forcing higher contribution from foreign markets p11
Executive summary: Aldi Nord – ANIKO store refurbishments p12
Executive summary: Aldi Nord – rising costs p13
Executive summary: Aldi Nord – FMCG A brands introduction and private label sales declines p14
Executive summary: Aldi Nord – the hard road to recovery p15
The Concept p16
The concept: product centricity, relentless process optimisation p17
The concept: modernising one single format, internationalisation, buying power p18
A winning format: The Discounter – success factors p19
The concept: adaptability, agility, online opportunity, optimisation and efficiency p20
Aldi Nord 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
April 2018: taking share in Germany, due to brands and new listings p28
April 2018: Aldi uses brands in price comparison ads in Germany p29
May 2018: first signs of trouble for Aldi Nord in Germany p30
May 2018: suffers from unsold non food products in DE, plans 28 stores in Spain p31
June 2018: mixed use stores in Belgium, restricts energy drinks in NL p32
July 2018: Aldi is harmonising ranges in Germany p33
July 2018: Aldi is growing in Poland, Aldi Nord extends fruit and vegetable ranges p34
August 2018: Aniko fine-tuning in Germany p35
September 2018: tackling plastic waste p36
October 2018: Aldi is creating an EU wide buying alliance for fruit and veg p37
November 2018: Aldi launching baby food p38
December 2018: Nord with first ever losses in DE p39
February 2019: Aldi changes marketing strategy, Wolfgang Joop homewares in DE p40
February 2019: Aldi starts to readjust its promotions policy in Germany p41
March 2019: Price war between Aldi and Lidl in Germany p42
March 2019: Aldi with strong double digit growth in Poland p43
Financials and KPIs p44
Aldi: The original – split into two, an organising principle to manage complexity p45
Aldi: Benchmarks, sales densities, Sued ahead of Nord, profits and margins p46
The Data p47
Aldi Nord: Total Sales by country, 2014-2020f, in €bn p48
Aldi Nord: Total Sales Growth by country, 2014-2020f, in % p49
Aldi Nord: Total Stores by country, 2014-2020f p50
Aldi Nord: Total Stores Growth by country, 2014-2020f, in % p51
Aldi Nord: Total Sales per Store by country, 2014-2020f, in €m p52
Aldi Nord: Total Sales per Stores Growth by country, 2014-2020f, in % p53
Aldi Nord: Total Selling Space by country, 2014-2020f, in m sq m p54
Aldi Nord: Total Selling Space Growth by country, 2014-2020f, in % p55
Aldi Nord: Average Store Space by country, 2014-2020f, in sq m p56
Aldi Nord: Average Store Space Growth by country, 2014-2020f, in % p57
Aldi Nord: Sales Densities by country, 2014-2020f, in €/sq m p58
Aldi Nord: Sales Densities Growth by country, 2014-2020f, in % p59
The SKU Data p60
Aldi Nord: SKU count by country, 2015-2020f p61
Aldi Nord: SKU Count Growth by country, 2015-2020f, in % p62
Aldi Nord: Sales per SKU by country, 2015-2020f in € p63
Aldi Nord: Sales per SKU Growth by country, 2015-2020f, in % p64
Aldi Nord: Number of branded SKU by country, 2015-2020f p65
Aldi Nord: Number of branded SKU Growth by country, 2015-2020f, in % p66
Aldi Nord: Sales of branded SKUs by country, 2015-2020f in €m p67
Aldi Nord: Sales of branded SKU Growth by country, 2015-2020f, in % p68
Aldi Nord: Sales share of branded SKUs by country, 2015-2020f in % p69
Germany: Aldi widens ranges, SKU count almost on Lidl level p70
SKU Analysis: sales potential of a global brand in Aldi, the 80/20 principle p71
SKU Analysis: estimates for Coke, Fererro, Haribo, Nivea et al p72
SKU Analysis: Aldi seeks to raise synergies in pan European buying of brands p73
SKU Analysis: Aldi advertising coordination between Nord and Sued p74
FMCG A Brand Strategy p75
Strategy: Aldi and FMCG A brands - how long will this alliance last? p76
Strategy: Aldi and FMCG A brands – 9 reasons to be sceptical p77
Strategy: the reaction from the competition, margin destruction p78
Recommendations: what FMCGs should do, when listing at Aldi p79
Recommendations: Who are the winners and the losers from Aldi’s strategy? p80
Recommendations: How can other retailers react? p81
Aldi EDLP/promotions change p82
Strategy: strategy change from pureplay private label to FMCG A brands listings p83 Strategy: Aldi uses tactical promotions for FMCG A brands (I) p84
Strategy: Aldi uses tactical promotions for FMCG A brands (II) p85
Germany: Aldi considers discounting and moving away from EDLP p86
Germany: Aldi discounting permanently listed FMCG A brands in promotions p87
Future store strategy – Project ANIKO p88
Germany: Aldi Nord opens new pilot store in Germany p89
Germany: Aldi Nord’s new pilot store in Germany p90
Germany: Aldi Nord’s new pilot store in Germany – store pictures (I) p91
Germany: Aldi Nord’s new pilot store in Germany – store pictures (II) p92
Germany: Aldi Nord is planning €bn store investments for ANIKO p93
Germany: Aldi Nord is building residential mixed use schemes in Berlin p94
Germany: Aldi Nord Berlin store pictures p95
August 2018: Aniko fine-tuning in Germany p96
Outlook: Quo vadis Aldi? p97
Outlook: Quo vadis Aldi? – work on FMCG A brands continuing p98
Outlook: Quo vadis Aldi? – strategic risks p99
Outlook: Aldi Nord rebuilding in its domestic market p100
Outlook: Aldi Nord looking to abroad to generate funds, issues with Aniko p101
Sources p102
A bit more on ResearchFarm p104
Chart 1: The Discounter Success factors p19
Table 1: Aldi Nord: Total Sales by country, 2014-2020f, in €bn p48
Table 2: Aldi Nord: Total Sales Growth by country, 2014-2020f, in % p49
Table 3: Aldi Nord: Total Stores by country, 2014-2020f p50
Table 4: Aldi Nord: Total Stores Growth by country, 2014-2020f, in % p51
Table 5: Aldi Nord: Total Sales per Store by country, 2014-2020f, in €m p52
Table 6: Aldi Nord: Total Sales per Stores Growth by country, 2014-2020f, in % p53
Table 7: Aldi Nord: Total Selling Space by country, 2014-2020f, in m sq m p54
Table 8: Aldi Nord: Total Selling Space Growth by country, 2014-2020f, in % p55
Table 9: Aldi Nord: Average Store Space by country, 2014-2020f, in sq m p56
Table 10: Aldi Nord: Average Store Space Growth by country, 2014-2020f, in % p57
Table 11: Aldi Nord: Sales Densities by country, 2014-2020f, in €/sq m p58
Table 12: Aldi Nord: Sales Densities Growth by country, 2014-2020f, in % p59
Table 13: Aldi Nord: SKU count by country, 2015-2020f p61
Table 14: Aldi Nord: SKU Count Growth by country, 2015-2020f, in % p62
Table 15: Aldi Nord: Sales per SKU by country, 2015-2020f in € p63
Table 16: Aldi Nord: Sales per SKU Growth by country, 2015-2020f, in % p64
Table 17: Aldi Nord: Number of branded SKU by country, 2015-2020f p65
Table 18: Aldi Nord: Number of branded SKU Growth by country, 2015-2020f, in % p66
Table 19: Aldi Nord: Sales of branded SKUs by country, 2015-2020f in €m p67
Table 20: Aldi Nord: Sales of branded SKU Growth by country, 2015-2020f, in % p68
Table 21: Aldi Nord: Sales share of branded SKUs by country, 2015-2020f in % p69