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Lidl to build 40 new stores in Spain

German supermarket giant Lidl says it is planning the construction of 40 new stores in Spain as part of a record investment of €350 million in the country this year, a third higher than that of 2015.

German supermarket giant Lidl says it is planning the construction of 40 new stores in Spain as part of a record investment of €350 million in the country this year, a third higher than that of 2015.

Lidl’s chief financial officer in Spain Ferran Figueras said the discount chain’s commitment to Spain is stronger than ever. “We are confident we still have much potential to keep growing and winning market share, which is why we will continue to open new stores in order to reach more and more Spanish households.”

Lidl will continue working to maintain its business strategy and keep offering Spanish consumers the cheapest prices without skimping on the quality of all its products, he said.

In a press release, Lidl said the construction of the new stores is aimed at increasing its presence in areas in which the company is not yet present and at modernising and expanding its store network.

New logistics platforms, more jobs

It also said that in order to address the significant increase in sales it has seen in recent years and ensure sustainable growth in the future, it is planning new logistics facilities.

This September will see the first phase of what will be Lidl’s tenth logistics platform in Spain – located in Alcala de Henares – come into operation.

Lidl said that in order to further increase its logistics infrastructure, it recently acquired a 122,000 m2 site in Cheste, in Valencia.

And in addition to more than 1,200 new jobs in 2015, Lidl said it plans to create a further 800 new jobs this year in order to consolidate its strategy of expansion and of “offering consumers products of the highest quality at the best price.”

 

 

 

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Record numbers shop at Lidl in Ireland

The latest supermarket share figures from Kantar Worldpanel in Ireland, published today for the 12 weeks ending 22 May 2016, show a strong sales boost for the grocery market with sales increasing by 4.0% compared with last year.

Kantar Worldpanel’s latest supermarket share figures for – for the 12 weeks to May 22 – show a strong sales boost for the grocery market with sales increasing by 4.0% compared with last year, the global expert in shoppers’ behaviour reports.

Kantar Worldpanel director David Berry said the data shows consumers are making more frequent visits to supermarkets, averaging an additional four trips in the latest 12 weeks compared with last year. “Coupled with increased prices this means that the average household is spending an additional €50 on groceries this year, amounting to an extra €89 million for the market.”

In terms of grocery market share for the latest 12 week period, SuperValu, which enjoyed its tenth consecutive period of growth, was in the lead – for the eighth month in a row – with a 22.7% share of the market. It was closely followed by Tesco with 22.4% and Dunnes with 21.4%. Berry noted Tesco saw its first growth in footfall in 10 periods, “suggesting its investment in keeping prices down may be starting to pay off.”

“Lidl continues to post impressive sales growth as more consumers choose to shop with the retailer – a record 72.4% of all Irish households shopped in a Lidl store in the last quarter, widening the gap between it and rival discounter Aldi. Sales growth for Aldi stands at 2.4% in the latest quarter – a positive step up from the previous results for April and an early sign that sales growth might be starting to improve again,” he said.

 

source: ​Grocery spend continues to rise, record numbers shop at Lidl, 07/06/2016, Kantar Worldpanel Ireland

 

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Fresh produce delivers over a third of Lidl’s turnover

This month Lidl started a new marketing campaign centred on the slogan "If it's fresh, it's from Lidl" and focused on its assortments of meat, fruit, vegetables and ready-to-eat salad packs.

Fresh produce accounted for 35% of sales of its sales last year, says discount retailer Lidl.

That’s up five percentage points on the previous year and reflects the fact it puts freshness at the heart of its product strategy, the German global supermarket chain said in a press release.

Fresh produce section in a Lidl store

Lidl said it is also continuing to carry out major projects designed to strengthen its fresh produce assortment. It said in fresh fruit and vegetables it now has an offering of 110 references, 10% more than in 2015.

Head of purchasing for Lidl Spain Miguel Paradela said Lidl maintains its strong focus on fresh produce “because we are aware of how crucial it is when it comes to winning customer loyalty and making sales.” The retailer wants not only to offer a wide range of fresh produce, but at the cheapest price on the market, he said.

Lidl said it also remains the biggest buyer of Spain’s horticultural produce, last year buying 1.2 million tons of fruit and vegetables – up 11.6% on 2014 – and the equivalent of 6% of Spanish agricultural production. About 80% of this produce goes abroad to stock the 10,000 stores Lidl has across the 26 European countries in which it operates.

This month Lidl started a new marketing campaign centred on the slogan “If it’s fresh, it’s from Lidl” and focused on its assortments of meat, fruit, vegetables and ready-to-eat salad packs.

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Sainsbury’s, Lidl and Aldi gain share in UK grocery market

Kantar use this

“Not much festive chair for supermarkets collectively this month with growth falling to a feeble 0.1%.” That’s how Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, began discussing the company’s latest data on grocery share in the UK, covering  the 12 weeks to December 6.

Furthermore, like-for-like prices had fallen by 1.9% in the previous month, he said.

But in among the gloom, Sainsbury’s was the stand-out performer. It boosted sales by 1.2%, growing across its convenience, supermarket and online businesses and increasing its market share to 16.7%.

Meanwhile it was a familiar story of falling sales and shrinking share for Tesco, Asda and Morrisons, but for Aldi and Lidl, one of double-digit growth and they “are surely looking forward to a record Christmas market share,” McKevitt said.

Listen to his analysis and read more here: http://www.kantarworldpanel.com/en/Press-Releases/Sainsburys-stands-out-in-the-run-up-to-Christmas

 

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German discounters now command a tenth of British grocery sales

Discount retailers Aldi and Lidl have reached a combined 10% share of the British grocery market for the first time, new grocery share figures from Kantar Worldpanel for the 12 weeks to November 8, 2015, show.

Discount retailers Aldi and Lidl have reached a combined 10% share of the British grocery market for the first time, new grocery share figures from Kantar Worldpanel reveal.

The data, for the 12 weeks to November 8, show Lidl’s market share reached a new record high of 4.4%, up 0.7 percentage points on last year thanks to 19% sales growth. Aldi grew sales by 16.5%, keeping its market share at 5.6% for the fifth consecutive month.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said the discounters show no sign of stopping and with plans to open hundreds of stores between them will further widen their reach to the British population.

“If you look back as recently as 2012, Aldi and Lidl only held a 5% share of the market, and it had previously taken them nine years to double their combined share from 2.5%. In the last 12 weeks the two retailers have attracted another additional million shoppers compared with last year while average spend per trip has increased by 4% to £18.85, which is 78p ahead of the total retailer average,” McKevitt said.

Other highlights from the latest data:

  • Sainsbury’s: has seen its fourth consecutive period of growth despite the tough market, with sales up 1.5%
  • Tesco: sales were down by 2.5%
  • Morrisons: sales fell 1.7%
  • Asda: sales dropped 3.5%
  • Waitrose: sales up 2.7%
  • The Co-operative: sales up 1.5% & a 0.1 percentage point gain in market share

Shoppers paying less

Grocery inflation stood at -1.7% for the 12 weeks to November 8, which means shoppers are now paying less for a representative basket of groceries than they did in 2014. “This is the same fall as reported last month. Falling prices reflect the impact of Aldi and Lidl and the market’s competitive response, as well as deflation in some major categories including eggs, butter, bread, crisps and fresh poultry,” Kantar Worldpanel reported.

 

sources
http://www.kantarworldpanel.com/en/Press-Releases/Aldi-and-Lidl-reach-10-per-cent-share-of-the-British-grocery-market-for-the-first-time
http://www.kantarworldpanel.com/en/grocery-market-share/great-britain

 

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Big ad spends help Aldi, Lidl grab more of UK market

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German discounters Aldi and Lidl now hold an 11% slice of UK grocery sales.

According to Nielsen figures for the 12 weeks to March 28, Aldi’s sales grew 17.9% year-on-year, to reach a 6.2% share of the grocery market, and Lidl’s sales rose 10.8%, for a 4.9% share – cementing their positions as the UK’s 5th and 7th biggest supermarkets, respectively.

Lidl biggest spender on TV & press ads

In the four weeks to March 28, Lidl spent the most on TV and press advertising (£5.9 million) – up 160%  on the same period last year – followed by Asda (£4.0 million) and Aldi (£3.5 million).

“Aldi and Lidl have become the fifth and seventh biggest supermarkets partly due to their large ongoing investment in advertising. Not only do they consistently spend the most in relation to each percentage of market share they hold, their advertising has changed the perceptions and expectations of UK shoppers,” Nielsen’s UK head of retailer and business insight Mike Watkins said.

Bad month for the Big Four

Over the same period, all of the big four supermarkets saw a decline in year-on-year grocery sales. Asda’s slipped 1.7%, Tesco’s 1.1% and Sainsbury’s and Morrisons 0.6% each.

However, Tesco remained in top ranking, with a share of 27.5%, followed by Sainsbury’s with 16%, Asda with 15.7% and Morrisons with 10.7%.

Outlook for next 3 months more positive

Watkins said the current trading environment is challenging for the supermarkets. “…people (are) spending less on groceries than they used to.”

“Consumer spend continues to be impacted by a combination of record-low food inflation and supermarkets’ competitive pricing policies – good news for shoppers but not retailers, whose margins are continually under pressure. However, the outlook for the next three months is more positive than we’ve seen for some considerable time,” he said.

Read the Nielsen press release.
image source

 

 

 

 

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LIDL explains how to recognise quality in fruit and veg

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Global discounter LIDL has launched a quality campaign in its German home base teaching how to recognize good quality.

The campaign includes a TV ad now on air in Germany which asks “How can you tell what really is good?”

The initiative focuses on six product groups: fruits and vegetables, fresh baked goods, fresh meat products, wine, coffee and chocolate.

An accompanying web site says how fresh, crisp and juicy they are is a guide to quality in fruit and vegetables “and not the fact someone made a colourful pyramid out of them.” Good vegetables are usually plump, crisp and firm. For many types – such as tomatoes, cucumbers and bell peppers – a strong and uniform skin colour is an indication of ripeness, it says.

Lidl has included a fruit and vegetables ‘horoscope’ to guide consumers as to the ‘stars of the season’. It provides an overview of Lidl’s changing range according to the time of year. Being in season is another factor in good quality fruit and vegetables. “We only offer a product when it has reached the ideal level of maturity and thus tastes really good,” it says.

See the web site (in German)