7 strategies to combat the Discounters 2019

7 Strategies To Combat The Discounters 2019


Release date: November 24th, 2019 (81 pages)
PDF/Powerpoint format. Price: GBP1,041.00

Abstract

Want to avoid the pain of telling shareholders, employees, suppliers and shoppers that you’ve screwed up? Dave Lewis Tesco, 2019: (…) Jack's (…) We’ve tried a different model, big store, rolling store, it didn't go right. And by the way, completely my fault, completely my fault. Don't let me make the decision about how we try a new format. Just don't let me do that. We got it wrong. These guys are now picking it up. We will try it again somewhere. Wherever one looks the discounters are outperforming, and one of the strategies competing retailers tend to - always - get wrong is launching their own discount fascia. The historical record speaks for itself, be it in Germany, France, Spain or the UK. … We have tracked the two hard discounters Aldi and Lidl for decades. 2019 has probably been the year of most upheaval for their business models. Aldi is looking to bring its two subsidiaries (South and North) much closer together and is using BIg Data solutions for the first time, all a consequence of listing FMCG A brands and becoming more price comparable. Lidl is disrupting itself on an unprecedented scale, becoming omni-channel and digitalising every business process, which includes the launch of a mobile payment and loyalty solution, quite a departure for a retailer that just ten years ago was a no thrills hard discounter.

Table of contents

Executive Summary p7
EU Grocery market sizes p10
Discounters: The context, operating in a €1.0tr sector in the EU p11
Discounters: The context, France, UK, Germany, Spain p12
Discounters: Aldi and Lidl forcing consolidation, impact on suppliers p13
Grocery Retail, Defensive sector in transformation p14
Grocery Retail: EU28 2015, 2016, 2017, in €, ranked by size p15
Grocery Retail: EU28 2017, in €, ranked by size, France - Denmark p16
Grocery Retail: EU28 2017, in €, ranked by size, Finland - Malta p17
Grocery Retail sizes: analysis and explanation p18
Grocery Retail: % share of Retail, EU28 2016, ranked by size p19
Grocery Retail: EU28 2017, in €, per capita, ranked by size, Sweden - Estonia p20
Grocery Retail: EU28 2017, in €, per capita, ranked by size, Greece – Romania p21
EU28 Retail, Growth p22
Grocery Retail: EU28 2012 - 2017, in €bn p23
Grocery Retail: EU28 2013 - 2017, in y-o-y % p24
Grocery Retail: EU28 2012 - 2017, 5 year growth rate in %, ranked p25
Grocery Retail Growth: analysis and explanation p26
Price war, Strategy 2 p46
Price war: poor visibility into discounters, early missteps p47
Price war: It’s all about the SKUs, the structural advantage of Aldi and Lidl p48
Price war: watch the German grocery market – as a warning p49
Price war: what has happened in France, Aldi to buy Leaderprice? p50
Recommendations: price war, does it work? p51
Launching a discounter, Strategy 3 p53
Launching a discounter: launching or acquiring a discount fascia, fight fire with fire p54
Launching a discounter: Sainsbury and Netto p55
Discounters: Where Aldi and Lidl go high, Tesco’s Jack’s is going low p56
Discounters: Jack’s store locations and business structure p57
Discounters: Jack’s – a decidedly poor record p58
Recommendations: launching a discounter, does it work? p59
Convenience, Strategy 4 p60
Convenience: Convenience, snap up sites, stop discounters from expanding p61
Convenience: Service counter renaissance, food to – go opportunity p62
Recommendations: convenience, does it work? p63
Chart 13 Grocery Retail: EU28 2015, 2016, 2017, in €, ranked by size p61
Chart 14 Grocery Retail: EU28 2017, in €, ranked by size, France - Denmark p62
Chart 15 Grocery Retail: EU28 2017, in €, ranked by size, Finland - Malta p63
Chart 16 Grocery Retail: % share of Retail, EU28 2016, ranked by size p65
Chart 17 Grocery Retail: EU28 2017, in €, per capita, ranked by size, Sweden - Estonia p66
Chart 18 Grocery Retail: EU28 2017, in €, per capita, ranked by size, Greece – Romania p67
Chart 19 Grocery Retail: EU28 2012 - 2017, 5 year growth rate in %, ranked p71