7 strategies to combat the Discounters 2019

7 strategies to combat the Discounters 2019

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.


  • Executive Summary
  • EU Grocery market sizes
    • Discounters: The context, operating in a €1.0tr sector in the EU
    • Discounters: The context, France, UK, Germany, Spain
    • Discounters: Aldi and Lidl forcing consolidation, impact on suppliers
  • Grocery Retail
    • Grocery Retail: EU28 2015, 2016, 2017, in €, ranked by size
    • Grocery Retail: EU28 2017, in €, ranked by size, France - Denmark
    • Grocery Retail: EU28 2017, in €, ranked by size, Finland - Malta
    • Grocery Retail sizes: analysis and explanation
    • Grocery Retail: % share of Retail, EU28 2016, ranked by size
    • Grocery Retail: EU28 2017, in €, per capita, ranked by size, Sweden - Estonia
    • Grocery Retail: EU28 2017, in €, per capita, ranked by size, Greece - Romania
  • Growth
    • Grocery Retail: EU28 2012 - 2017, in €bn
      • Table Grocery Retail: EU28 2012 - 2017, in €bn
    • Grocery Retail: EU28 2013 - 2017, in y-o-y %
      • Table Grocery Retail: EU28 2013 - 2017, in y-o-y %
    • Grocery Retail: EU28 2012 - 2017, 5 year growth rate in %, ranked
    • Grocery Retail Growth: analysis and explanation
  • Aldi
    • Discounters: Aldi harmonises PL ranges, FMCG brands, advertising, promotions
    • Discounters: Aldi changes, what does this mean for the future?
    • Discounters: listing in Aldi is a golden opportunity
  • Lidl
    • Discounters: Lidl's new strategic paradigm, going omnichannel
    • Lidl: premiumisation, Vertical Integration, digitalisation, loyalty and US expansion
  • Private Label relaunch
    • PL proposition relaunch: the evolution of premium ranges
    • PL proposition relaunch: the evolution of premium ranges, Tesco's finest
    • PL proposition relaunch: from premium to value range opportunity
    • PL proposition relaunch: state of play, as discounters list FMCG A brands
    • PL proposition relaunch: Tesco's new brands
    • Strategies: private label proposition relaunch, Tesco PL switching data
    • Strategies: exclusively at Tesco data, spend change vs competition
    • Strategies: private label proposition relaunch, France organic PL, Carrefour
    • Recommendations: private label proposition relaunch
  • Price war
    • Price war: poor visibility into discounters, early missteps
    • Price war: It's all about the SKUs, the structural advantage of Aldi and Lidl
    • Price war: watch the German grocery market – as a warning
    • Price war: what has happened in France, Aldi to buy Leaderprice?
    • Recommendations: price war
  • Launching a discounter
    • Launching a discounter: launching or acquiring a discount fascia, fight fire with fire
    • Launching a discounter: Sainsbury and Netto
    • Discounters: Where Aldi and Lidl go high, Tesco's Jack's is going low
    • Discounters: Jack's store locations and business structure
    • Discounters: Jack's – a decidedly poor record
    • Recommendations: launching a discounter
  • Convenience
    • Convenience: Convenience, snap up sites, stop discounters from expanding
    • Convenience: Service counter renaissance, food to – go opportunity
    • Recommendations: convenience
  • Online
    • Online: opportunity as long as the discounters only engage sporadically
    • Recommendations: online
  • Co-location
    • Co-location: co-location and footfall sharing, Aldi partnering with dm
    • Co-location: co-location and footfall sharing, Aldi USA and Kohl's
    • Recommendations: co-location and footfall sharing
  • Buying alliances
    • Buying alliances: a French reaction
    • Buying alliances: going pan EU, Tesco Carrefour alliance, Leclerc legal troubles
    • Buying alliances: Casino and Intermarche falling foul of EU commission
    • Recommendations: buying alliances
  • Conclusion
    • Sources

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook