Aldi Nord 2019

Aldi Nord 2019

Currently Aldi and Lidl generate growth, measured in billion dollars, that only online players achieve. Already in the global Top ten, the discounters will climb up higher in the rankings. This has major implications for suppliers, competitors and the wider
industry.

Aldi/Lidl are the only grocery players expanding with bricks and mortar (especially when taking an international perspective). Their new store locations are moving into convenience/inner city spaces, arguably the right future format.

As competitors build out their online offerings and invest, Aldi and Lidl attack their b&m proposition, from which the competitors fund their digital transformation. This increases their competitors’ margin pressure and leads to overall price deflation in the wider market.

What does this mean? As the industry becomes more concentrated and consolidated (M&As, bankruptcies) for suppliers only a number of key accounts will be left standing (big 4/big 3 etc). The more this happens the more influential the discounters become as an alternative route to market.

As Aldi/Lidl lose the cheap and cheerful tag, shopper perceptions change. This is pushed further along by the discounters’ move to quality, premium private label, fresh/organics.

Due to their relentless expansion Aldi and Lidl have gained a wide footprint, ideal for global promotions. If a FMCG giant wants to push through a promotion in the entire EU and US/Australia – the only available avenues are Amazon/Alibaba or Aldi/Lidl due to their massive reach, and simplicity inherent in the business model. Both discounters can get product on to shop floors at rapid speed, if required (e.g. Lego promotion before Christmas).

The discounters benefit from their trading up strategies, lowering FMCG inhibitions to damage their brand perception by a listing, their excellent logistics set-ups and are also attractive to FMCGs due to them both competing against each other.

This means the discounters will become more attractive to manufacturers as a new channel (quite apart from the fact that they will guarantee massive volume sales, because of their SKU level sales).


  • Executive Summary
    • Executive summary: Aldi Nord 2019 - first ever losses in Germany
    • Executive summary: Aldi Nord 2019 - contribution from foreign markets
    • Executive summary: Aldi Nord 2019 - ANIKO store refurbishments
    • Executive summary: Aldi Nord 2019 - rising costs
    • Executive summary: Aldi Nord 2019 - brands and private label sales declines
    • Executive summary: Aldi Nord 2019 - the hard road to recovery
  • The concept
    • The concept: product centricity, relentless process optimisation
    • The concept: modernising one single format, internationalisation, buying power
    • A winning format: The Discounter - success factors
    • The concept: adaptability, agility, online opportunity, optimisation and efficiency
  • Aldi Nord
    • Aldi: A completely underestimated business model
    • Aldi: Simplicity, simplicity, simplicity - fine tuning a single format over decades
    • Aldi: Efficient layout and product presentation and the all important SKU count
    • Aldi: Lean SKU count means bigger buying power than Wal-Mart
    • Aldi: Supplier relationships and the quality focus
  • Recent key developments
    • April 2018: taking share in Germany, due to brands and new listings
    • April 2018: Aldi uses brands in price comparison ads in Germany
    • May 2018: first signs of trouble for Aldi Nord in Germany
    • May 2018: suffers from unsold non food products in DE, plans 28 stores in Spain
    • June 2018: mixed use stores in Belgium, restricts energy drinks in NL
    • July 2018: Aldi is harmonising ranges in Germany
    • July 2018: Aldi is growing in Poland, Aldi Nord extends fruit and vegetable ranges
    • August 2018: Aniko fine-tuning in Germany
    • September 2018: tackling plastic waste
    • October 2018: Aldi is creating an EU wide buying alliance for fruit and veg
    • November 2018: Aldi launching baby food
    • December 2018: Nord with first ever losses in DE
    • February 2019: Aldi changes marketing strategy, Wolfgang Joop homewares in DE
    • February 2019: Aldi starts to readjust its promotions policy in Germany
    • March 2019: Price war between Aldi and Lidl in Germany
    • March 2019: Aldi with strong double digit growth in Poland
  • Financials and KPIs
    • Aldi: The original - split into two, an organising principle to manage complexity
    • Aldi: Benchmarks, sales densities, Sued ahead of Nord, profits and margins
  • The Data
    • Aldi Nord: Total Sales by country, 2014-2020f, in €bn
      • Table Aldi Nord: Total Sales by country, 2014-2020f, in €bn
    • Aldi Nord: Total Sales Growth by country, 2014-2020f, in %
      • Table Aldi Nord: Total Sales Growth by country, 2014-2020f, in %
    • Aldi Nord: Total Stores by country, 2014-2020f
      • Table Aldi Nord: Total Stores by country, 2014-2020f
    • Aldi Nord: Total Stores Growth by country, 2014-2020f, in %
      • Table Aldi Nord: Total Stores Growth by country, 2014-2020f, in %
    • Aldi Nord: Total Sales per Store by country, 2014-2020f, in €m
      • Table Aldi Nord: Total Sales per Store by country, 2014-2020f, in €m
    • Aldi Nord: Total Sales per Stores Growth by country, 2014-2020f, in %
      • Table Aldi Nord: Total Sales per Stores Growth by country, 2014-2020f, in %
    • Aldi Nord: Total Selling Space by country, 2014-2020f, in m sq m
      • Table Aldi Nord: Total Selling Space by country, 2014-2020f, in m sq m
    • Aldi Nord: Total Selling Space Growth by country, 2014-2020f, in %
      • Table Aldi Nord: Total Selling Space Growth by country, 2014-2020f, in %
    • Aldi Nord: Average Store Space by country, 2014-2020f, in sq m
      • Table Aldi Nord: Average Store Space by country, 2014-2020f, in sq m
    • Aldi Nord: Average Store Space Growth by country, 2014-2020f, in %
      • Table Aldi Nord: Average Store Space Growth by country, 2014-2020f, in %
    • Aldi Nord: Sales Densities by country, 2014-2020f, in €/sq m
      • Table Aldi Nord: Sales Densities by country, 2014-2020f, in €/sq m
    • Aldi Nord: Average Store Space Growth by country, 2014-2020f, in %
      • Table Aldi Nord: Average Store Space Growth by country, 2014-2020f, in %
  • The SKU Data
    • Aldi Nord: SKU count by country, 2015-2020f
      • Table Aldi Nord: SKU count by country, 2015-2020f
    • Aldi Nord: SKU Count Growth by country, 2015-2020f, in %
      • Table Aldi Nord: SKU Count Growth by country, 2015-2020f, in %
    • Aldi Nord: Sales per SKU by country, 2015-2020f in €
      • Table Aldi Nord: Sales per SKU by country, 2015-2020f in €
    • Aldi Nord: Sales per SKU Growth by country, 2015-2020f, in %
      • Table Aldi Nord: Sales per SKU Growth by country, 2015-2020f, in %
    • Aldi Nord: Number of branded SKU by country, 2015-2020f
      • Table Aldi Nord: Number of branded SKU by country, 2015-2020f
    • Aldi Nord: Number of branded SKU Growth by country, 2015-2020f, in %
      • Table Aldi Nord: Number of branded SKU Growth by country, 2015-2020f, in %
    • Aldi Nord: Sales of branded SKUs by country, 2015-2020f in €m
      • Table Aldi Nord: Sales of branded SKUs by country, 2015-2020f in €m
    • Aldi Nord: Sales of branded SKU Growth by country, 2015-2020f, in %
      • Table Aldi Nord: Sales of branded SKU Growth by country, 2015-2020f, in %
    • Aldi Nord: Sales share of branded SKUs by country, 2015-2020f in %
      • Table Aldi Nord: Sales share of branded SKUs by country, 2015-2020f in %
    • Germany: Aldi widens ranges, SKU count almost on Lidl level
    • SKU Analysis: sales potential of a global brand in Aldi, the 80/20 principle
    • SKU Analysis: estimates for Coke, Fererro, Haribo, Nivea et al
    • SKU Analysis: Aldi seeks to raise synergies in pan European buying of brands
    • SKU Analysis: Aldi advertising coordination between Nord and Sued
  • FMCG A Brand Strategy
    • Strategy: Aldi and FMCG A brands - how long will this alliance last?
    • Strategy: Aldi and FMCG A brands - 9 reasons to be sceptical
    • Strategy: the reaction from the competition, margin destruction
    • Recommendations: what FMCGs should do, when listing at Aldi
    • Recommendations: Who are the winners and the losers from Aldi's strategy?
    • Recommendations: How can other retailers react?
  • Aldi EDLP/promotions change
    • Strategy: strategy change from pureplay private label to FMCG A brands listings
    • Strategy: Aldi uses tactical promotions for FMCG A brands
    • Germany: Aldi considers discounting and moving away from EDLP
    • Germany: Aldi discounting permanently listed FMCG A brands in promotions
  • Future store strategy
    • Germany: Aldi Nord opens new pilot store in Germany
    • Germany: Aldi Nord's new pilot store in Germany
    • Germany: Aldi Nord's new pilot store in Germany - store pictures
    • Germany: Aldi Nord is planning bn store investments for ANIKO
    • Germany: Aldi Nord is building residential mixed use schemes in Berlin
    • Germany: Aldi Nord Berlin store pictures
    • August 2018: Aniko fine-tuning in Germany
  • Outlook
    • Outlook: Quo vadis Aldi? - work on FMCG A brands continuing
    • Outlook: Quo vadis Aldi? - strategic risks
    • Outlook: Aldi Nord rebuilding in its domestic market
    • Outlook: Aldi Nord looking to abroad to generate funds, issues with Aniko
  • Sources
  • A bit more on ResearchFarm

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