Aldi the hard discount phenomenon

It is controversial, to say the least. Think of a discount chain like ALDI but without sticking to stocking only the generic stuff. How do they do this? What is the reaction of the pueblo?

Aldi the hard discount phenomenon

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If your browser does not support JavaScript, please read the page content below: The two German-based hard discount food retailers are expanding rapidly across Europe. Lidl entered Norway, Hungary and Slovakia in with more eastward expansion expected. In other countries such as the UK, the hard discount impact is insidious — growing slowly and unnoticeably.

The impact is not limited to Europe. Lidl is eying Canada. The hypermarket boom has given way to multi-format strategies that span from big boxes to small formats. Others, such as Ahold, have pulled out of hypermarkets to focus on core formats such as supermarkets.

What would it look like?

Direct global sourcing is expanding access to lower cost product. Carrefour is depending on its new Number One private label to help turn Aldi the hard discount phenomenon tide in France. The Lidl hard discount chain is the largest division of the Schwarz Group.

Aldi and Lidl are among the most internationalized retailers, each present in more than a dozen countries. Aldi Sud manages expansion in English- speaking countries and Austria, which borders its operations in Southern Germany.

Aldi Nord manages expansion in the rest of Europe as well as Northern Germany.

Europe’s hard discount threat Aldi and Lidl represent one of the biggest threats to retailers across Europe. The two German-based hard discount food retailers are expanding rapidly across Europe. Aldi’s plans for an apparel brand in the UK highlight a growing impact on non-food categories. Aldi: The Hard Discount Phenomenon Nirmalya Kumar, Professor of Marketing, London Business School, UK talks about different ways to teach with his case Aldi: The Hard Discount Phenomenon. I wrote the Aldi case 1 with Professor Daniel Corsten given our interests in retailing and supply chain. Nirmalya Kumar, Professor of Marketing, London Business School, UK talks about different ways to teach with his case Aldi: The Hard Discount Phenomenon.

Aldi Sud logo Aldi Nord logo 8 Aldi store characteristics Both Aldi companies operate with the same limited assortment, private label strategy. A typical store is about 15, sq. The Aldi format in the US reportedly aims to grow by stores to reach 1, by Published reports, EuroStat, country statistics offices, www.

Its Kaufland hypermarkets are also spreading into Eastern Europe. Dieter Schwarz is the primary owner of the Schwarz Group, structured largely to minimize union and other legal requirements.

Aldi the hard discount phenomenon

While the Group dates to the s, the first Lidl store opened in as a copy of Aldi. Lidl is more promotional than Aldi, which uses an EDLP strategy with non- food promotions to boost traffic.

Lidl is known for squeezing suppliers more so than Aldi and reacting faster to new consumer demands. Lidl has moved into Scandinavia with Finland inSweden last year and soon Norway.

An eastern push began with Poland inCzech Republic last year and Hungary and Slovakia in Lidl is also looking beyond Europe. Stretched resources kept it from entering Canada this year.

Aldi the hard discount phenomenon

The impact of hard discounters will vary to degree by country. Cultural differences mean that the impact of hard discounters will likely never approach the German outcome for most countries.

At same time, hard discounters have room to make significant gains in most countries around the world, including the US. The gains will be driven by an expanding down market in many parts of the world, as economic growth increasingly diverges among the poorest and wealthiest households.

For more information, contact program manager Frank Badillo at One senior executive at a leading supplier says Aldi and Lidl drive a hard bargain in initial negotiations – typically percentage points lower than the traditional grocers.

Aldi: The Hard Discount Phenomenon Nirmalya Kumar, Professor of Marketing, London Business School, UK talks about different ways to teach with his case Aldi: The Hard Discount Phenomenon. I wrote the Aldi case 1 with Professor Daniel Corsten given our interests in retailing and supply chain.

Europe’s hard discount threat Aldi and Lidl represent one of the biggest threats to retailers across Europe.

The two German-based hard discount food retailers are expanding rapidly across Europe. Aldi’s plans for an apparel brand in the UK highlight a growing impact on non-food categories. Hard-discount stores are about one-tenth the size of a Wal-Mart, with comparably lower staffing levels, and are usually located in low-rent districts.

Jan 08,  · Hard discount stores: A supply chain management challenge? Well, it has a name: Hard discount stores.

If you are interested in the world of logistics and supply chain management, pay attention, because your business might have to adapt to this kind of formats of sale and distribution of goods. this is a growing phenomenon.

How would a hard discounter justify the cost of selling online? The answer may be found in the operating efficiency of the hard discount model. Start with the number of products handled.

While there’s significant churn, Aldi stores typically carry no more than – items.

Hard Discount Definition