According to a local newspaper, Aldi Süd is planning to enter the Italian market in summer 2017 with an investment of €200m.
First store in Trento
Italy will be Aldi Süd's tenth market across the globe, and an addition to the significant European presence it currently has. Aldi is focusing its market entrance on the north of Italy, with the city of Trento as its first store location. The 1,500 sq m store is expected to be followed by openings in Bolzano and Verona; the latter being the location of the discounter's head office. The stores will be served by a distribution centre in Nogarole Rocca, located c.20 kilometres southwest of Verona.
Sales area between 1,000-1,500 sq m
Aldi is looking for sites with catchment areas of at least 30,000 people, with good visibility and easy access. Sites must be at least 5,000 sq m, allowing for a sales area of 1,000-1,500 sq m and 80 parking spaces. This is closest in size to the Aldi store we visited in Munich, which has a sales area of 1,100 sq m.
Challenging market but retailers look to grow
Despite the economic backdrop remaining challenging in the market, expansion remains a focus for some retailers in Italy, such as Conad and Selex, which are top two and three respectively in terms of market share. Along with these grocery developments, the discount channel has two big players, Eurospin and Lidl, while some of the multiples also have their own discount fascias, making this a competitive market for Aldi to enter.
As Aldi introduces new and contemporary stores in some of its markets, it will be interesting to see how it will bring this fresh feel to Italy and how its stores will be received by the local market. To read more about the Italian market in our country presentation, click here.
To view our latest Aldi store visit reports from the UK, USA, Australia and Germany, click here.
To read our new report on understanding the Aldi shopper, click here.
|Priya Chandarana is a Retail Analyst at IGD, specialising in research on the growing discount channel. To learn more about how IGD's research can benefit your business further, please get in touch - [email protected]|