7 Strategies To Combat The Discounters 2019Release 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 |