We bring you the latest news from Lidl and Aldi Süd in Germany.

Aldi Süd modernises 1,000 stores

Aldi Süd's store modernisation programme, which was launched in 2016, has now reached 1,000 stores. With nearly 1,900 stores in Germany, it plans to complete the revamp of all stores by 2020 and remains on track to achieve this. The new concept includes a larger fresh produce area, a wider bakery offer with some products made in-store, along with a modernised wine area and new lighting. It has also been promoting brands more prominently in store. The retailer has introduced digital screens to display offers and has improved the signage, making it easier for customers to navigate the aisles. Overall, the new design showcases an increased focus on the customer and demonstrates consideration of the shopper journey. A total of 771 stores have been modernised to the new concept, along with 157 that have been expanded and a further 72 new stores opened under the new concept. 

Lidl focusing on health

Lidl in Germany has been working to reduce sugar and salt in a number of its products, in response to changing customer requirements. It initially launched a sugar and salt reduction strategy, planning to reduce the sugar and salt content of its products by 20% by 2025. Through this, it has started with children's products and is also looking at particularly high sugar products such as soft drinks. However, the retailer is keen to gradually reformulate recipes, to ensure that the taste and quality are not compromised.

To see the latest Aldi store concept see the store visit report here.

Lidl to invest €100m in Portugal 2018, whilst in Spain, Lidl furthers its sustainable programme by eliminating plastic bags.

Investment in Portugal

According to Hipersuper, Lidl Portugal will split its investment between opening new stores and remodelling exiting ones. €20m of the €100m will be spent on the modernisation of the Torres Novas warehouse. The warehouse will be extended by 10,000 sq m.

€70m will also be invested over three years to build a new warehouse of 50,000 sq m. This will replace the Famalicão warehouse and should be operational by 2020.

Reducing plastics in Iberia

In Portugal and Spain Lidl aims to reduce plastic consumption by at least 20% by 2025. Furthermore, it will ensure that all plastic used in its private label products is 100% recyclable by 2025. This effort is part of Lidl’s sustainability strategy.

Lidl will achieve this through adapting the packaging of its private label ranges, which represent 80% to 90% of the products it stocks. Measures like reducing plastic packaging, using more sustainable alternatives, and selling unpackaged/bulk items will be used.

In Spain, Lidl will eliminate plastic bags by the end of 2018 . The initiative was rolled out first in Lidl’s Balearic Island stores from May 2018 and will continue to be rolled out nationwide throughout the year.

The campaign is being advertised on Lidl.es, as the company seeks to promote its sustainable vision.

These plastic reducing initiatives fit into the European strategy for plastics, presented by the European Commission at the beginning of 2018 – by 2030 all plastic should be recyclable or reusable. Lidl’s engagement with circular economy principles aligns with the European Commission’s plan for circular solutions, particularly when considering the entire lifecycle of plastics.

Source: Lidl

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The latest data from Kantar Worldpanel, for the 12 weeks to 20 May 2018, shows that the British grocery market enjoyed improving growth over the previous month, with total sales up 2.7%.

While the inflation rate remained unchanged at 2.1%, the sector benefited both from some excellent weather over the early summer national holiday, as well as the celebratory mood surrounding the wedding of Prince Harry to Megan Markle on the 19th of the month.

Morrisons and Asda ahead of the market

Amongst the biggest four retailers Morrisons has continued its run as the fastest growing, with implied sales up 2.9%.  However, Asda has been the biggest gainer of the four in this latest data, accelerating to +2.8% from 1.4% in the April release.  Tesco's growth remained more or less level with last month's figures on 2.2%, with its performance not benefiting from the wider improvement in the market.  Sainsbury's proved furthest adrift from the market average with 1.0% growth, losing two points of market share as a result.

Discounters' performance diverging

While both Aldi and Lidl continue to perform well ahead of the market average, Aldi in particular has slowed progressively, with its growth dropping back to 6.7% in this latest period. This is Aldi's slowest rate of growth in some years. Meanwhile Lidl successfully regained some of its pace lost in recent months, accelerating to 10.4%, up from the 9.1% seen in the April data.

Onset of summer good for convenience

Though Co-op's performance is still being impacted by the disposal of almost 300 stores in the first half of 2017, the arrival of good weather proved an excellent boost to its increasingly convenience-dominated store estate, nudging its growth positive to +1.5% from -0.4% in April. 

Source: Kantar Worldpanel

 

IGD Sainsbury's Trade Briefing 2018

 

5 June, London

 

Hear from Mike Coupe, CEO and Paul Mills-Hicks, Commercial Director, along with their leadership team who will provide a business and commercial update.

Find out more »

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UK retail sales slow in April
The latest release from the British Retail Consortium Retail Sales Monitor (BRC-RSM) indicates that UK retail sales slowed markedly in April 2018.

Sector performance slows in latest Kantar data
The latest data from Kantar Worldpanel shows that in the 12 weeks to 22 April 2018, the GB grocery market grew by 2.0%, a slowdown on the 2.5% seen in the previous period.