Lidl’s latest private label developments

Maxime Delacour
Senior Retail Analyst
@RetailAnalysis

Date : 28 May 2020

We look at the discounter’s latest private labels developments in Europe, from premium pet food to the growth of regional labels.

New range of premium and quality pet food products

During summer 2020, Lidl Finland will expand its assortment of Orlando and Coshida pet food products. It will add a new line of premium products to align with shoppers’ growing expectations of choice and quality.

The new premium line, Pure Taste, includes snacks, wet and dry food products for cats and dogs. It is produced with high quality meat and MSC-certified fish. The recipes are grain free, without added sugar and preservatives and have a high animal protein content, which provides an improved nutrition for pets.

 

Source: Lidl Finland

 

Cien: new vegan products and limited summer edition

This is another example of the segmentation of the discounter’s private label brands. In Q4 2019, it launched Nature’s Best by Cien. The new line of beauty products is vegan and made with 100% cold-pressed avocado oil.

For several years, the discounter has released, in several markets, a limited summer edition of Cien beauty products, including lip sticks, face masks and hand creams.

 

Source: IGD Research, May 2020

 

Both developments contribute to raise shoppers’ awareness of the Cien private label brand. This is one of the most advanced examples of a retailer’s private label moving closer to becoming a brand.

Dedicated fixtures for premium private labels

In France, Lidl has introduced new fixtures to promote some of its premium private labels. The highly popular Italian range, under the brand Italiamo, are being displayed on a dedicated gondola end, while chilled products are clearly signposted in fridges. It shows the discounter’s strategy of investing in its more premium private labels to offer quality and value.

 

Source: IGD Research, May 2020

 

In dairy, premium cheeses are displayed in quality baskets and clearly signposted. It creates differentiation with other cheese products displayed, which are in shelf ready packaging. It helps to improve products’ quality perception.

 

Source: IGD Research, May 2020

 

More locally sourced products

The discounter continues to increase the number of locally sourced products in its assortment. In Spain and Italy, more than 80% of its food assortment is produced in the country, while this is nearly 100% for its fruits and vegetables.

The pandemic has accelerated its local sourcing initiatives. In Bulgaria, 92 branded and private label products from small and local suppliers were added to its assortment. In only three weeks, the new products generated sales of more than €1.1m.

Meanwhile in France, the Saveurs de nos regions (Tastes from our regions) private label continues to grow. Products are grouped together in chillers and clearly signposted to raise their visibility for shoppers.

 

Source: IGD Research, May 2020

 

Shoppers’ needs at the heart of the strategy

Lidl’s various and recent developments underlines how the shopper is now, more than ever, at the heart of its strategy. The decentralised management structure offers each country’s operation some flexibility to evolve and adapt its assortment to align with shoppers’ expectations and latest market trends.

The pandemic is accelerating the evolution of the discounter’s assortment. We expect the range to continue to grow with the addition of more products covering further shopper needs and to cater to one-stop shopping missions.

Looking for more insights?

Retail Analysis subscribers looking for more insights on discounters’ digital transformation and Lidl can access the following reports: