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Tag: Lidl

  • Lidl Expands Supply Chain Strategy by Tapping into Vietnam and Malaysia Markets

    Lidl Expands Supply Chain Strategy by Tapping into Vietnam and Malaysia Markets

    In a strategic move to bolster its supply chains amidst global uncertainties, Lidl, one of Europe’s largest supermarket chains, is setting its sights on sourcing more products from Vietnam and Malaysia. This shift marks a significant step in the company’s ongoing efforts to diversify its supply chain and mitigate risks associated with reliance on traditional markets.

    Part of Germany’s influential Schwarz Group, Lidl’s expansion strategy includes an impressive milestone: the establishment of its Tailwind Shipping Lines in 2022. This venture was launched in the wake of the COVID-19 pandemic, designed to streamline logistics and enhance control over its supply chain operations, specifically from regions such as China, Bangladesh, and Sri Lanka to its European stores. In a surprising twist, Tailwind has quickly risen to become Germany’s second-largest shipping company, boasting a fleet of nine container ships.

    As Lidl navigates these turbulent waters of the global marketplace, its focus on Vietnam and Malaysia not only reflects a pragmatic response to supply chain vulnerabilities but also highlights the increasing importance of Southeast Asia in global retail sourcing. The company’s proactive strategy serves as a case study for others in the industry, showcasing how adaptability is crucial for thriving in an ever-evolving economic landscape.

    Questions & Answers

    What motivated Lidl to increase sourcing from Vietnam and Malaysia?
    Lidl aims to diversify its supply chains amid global uncertainties, minimizing reliance on traditional markets, especially after disruptions caused by the COVID-19 pandemic.

    What is Tailwind Shipping Lines, and why is it significant for Lidl?
    Tailwind Shipping Lines, launched by Lidl’s parent company Schwarz Group, allows for tighter control over logistics and has quickly become Germany’s second-largest shipping firm, enhancing the efficiency of getting goods to Lidl stores.

    How does Lidl’s strategy reflect broader trends in global retail?
    Lidl’s move underscores the growing importance of Southeast Asia for retail sourcing, highlighting the need for companies to adapt quickly to supply chain challenges in a rapidly changing economic environment.

  • Tesco set to open new discount Jack’s store to rival Lidl and Aldi

    Tesco set to open new discount Jack’s store to rival Lidl and Aldi

    British supermarket operator Tesco is set to unveil a new network of Jack’s stores: a budget grocery concept it hopes will take the fight directly to German discounters Aldi and Lidl.

    While the company has not made an official announcement, sources are reporting details leaked from multiple sources.

    In the first phase of a roll-out program, Tesco plans to open 60 Jack’s stores, initially in main cities. A Liverpool outlet will reportedly open its doors within five weeks and staff are being recruited for at least another three stores, suggesting an opening is imminent.

    A source revealed the chain will be called Jack’s and advertisements for staff refer to small teams in a new company that is operationally independent of Tesco.

    Analysts suggest Tesco will be able to use its recently acquired wholesaler Booker to help supply stores and Jack’s limited range and compact footprint would differentiate it from full-service Tesco stores with large product ranges and Booker’s cash-and-carry model which primarily targets business and the foodservice sector, selling in bulk.

    Some media have quoted inside sources saying the designs of Jack’s stores show “striking similarities” with Belgian chain Colruyt.

    Tesco trialled a discount format called Victor Value in the 1908s, but scrapped the concept after four years, fearing it would cannibalise sales of its main network. But in today’s UK grocery market with Aldi and Lidl already accounting for 13 per cent of the British grocery market and achieving year-on-year sales growth around 8 per cent, cannibalisation is less of a concern than losing sales to rival chains.

  • Tesco trolleys accused of sexism and gender apartheid

    Tesco trolleys accused of sexism and gender apartheid

    Tesco is to introduce new safety warning stickers on its trolleys after a social media storm saw it accused of “gender apartheid”.

    The warnings feature drawings of a woman and a child demonstrating how to allow children to ride in trolleys safely. A Manchester woman took to social media complaining the warnings were sexist because they featured a woman and child, enhancing social stereotypes that it was a woman’s role to do the shopping.

    Matt O’Connor, from an organisation called Fathers4Justice, went even further, saying: “Tesco needs to stop this gender apartheid”.

    Using a hashtag ‘everyday sexism’, the original complainant Tweeted “Tesco, is it only women who do the food shopping and look after the kids?”

    Samantha Rennie, executive director at equality group the Rosa UK Fund for Women and Girls, told the Manchester Evening News: “It… plays a role in reinforcing stereotypical ideas of the woman being responsible for the weekly food shop.”

    However, newspaper readers took a saner perspective on the issue. An online survey of readers showed 90 per cent did not believe the trolley warnings were sexist, (although it did not disclose the number of votes).

    One local Manchester man Tweeted that the complaint showed “The world’s gone mad”.

    “The [Manchester] woman who complained needs to get a life. It may be a man dressed as a woman.”

    Tesco says it has ordered new warning signs featuring gender neutral characters which will be placed on the next 20,000 new trolleys to be put into service across the UK.

    Discount brand mooted

    Meanwhile, Tesco has not commented on reports it is planning a bare-essentials style grocery chain to tackle German rivals Aldi and Lidl head on.

    The Sunday Times newspaper has reported that Tesco will launch a separate brand where goods are price matched to Aldi and Lidl’s offer, to try to win back customers lost to the German brands over the last decade.

    The stores would likely stock around 3000 SKUs and the brand and store format would be designed to stand apart from Tesco so as not to cannibalise its main brand’s sales. A typical Tesco supermarket stocks up to 30,000 items.

    The discounters are continuing to eat into the market share of Britain’s so-called ‘big four’ chains. In the latest quarterly data published by Retail Gazette, Tesco’s sales rose 2.6 per cent while Aldi and Lidl reported 16.2 and 16.3 per cent increase respectively.

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  • Lidl Stiftung enters China via JD Worldwide

    Lidl Stiftung enters China via JD Worldwide

    European supermarket chain Lidl Stiftung has opened a flagship store on JD Worldwide, introducing the Lidl brand to China through cross-border e-commerce.

    The German group’s flagship store sells snacks, healthcare products, personal and beauty care products, and food and drinks, such as biscuits, nuts and milk. It also plans to introduce home brands.

    Lidl has more than 10,000 stores across 30 countries, and 150 distribution centres in 28 countries.

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  • Aldi, Lidl and rivals to thrive as UK discount retail market soars

    Aldi, Lidl and rivals to thrive as UK discount retail market soars

    The UK Discount Retail market is set to soar by 36.1 per cent by 2022, reaching £32.5 billion by 2022 according to research by GlobalData.

    The company’s latest report UK Discounters 2017-2022 reveals discount retailers could gain an extra £9 billion slice of the total retail market as they become a more appealing destination for consumers looking for bargains as inflation continues to squeeze their disposable income.

    “This will be good news for Aldi, Lidl and B&M Bargains which dominate the channel, with a combined share of over 70 per cent of the discount retail market,” observes Molly Johnson-Jones, senior food & grocery analyst with GlobalData Retail.

    DIY & gardening, health & beauty and homewares will deliver the strongest category growth.

    About 89.4 per cent of the UK population have shopped at a discounter in the last 12 months with food & grocery (F&G), non-discretionary household goods and health & beauty (H&B) the most popular product categories with shoppers.

    “Our report findings confirm that discounters have done an exceptional job in gaining market share of frequently purchased items by changing the perception of discounter own label products in F&G while at the same time undercutting mainstream retailers on branded items in H&B and household. This combined approach has proven to be very disruptive in the market and has contributed to their success.’’

    Food & grocery is the sector with the highest market value, worth £15.7 billion in 2017, and will grow to £21.8 billion by 2022 – taking away another £6 billion from the mainstream grocers.

    “As perception and trust in own-label has been earned by the discounters in groceries, this is the sector which the mainstream retailers should be the most concerned about as the barriers to entry have already been overcome.

    “Food & grocery has enjoyed strong growth over the past decade as even when incomes have been more pressured by inflation and lower real wage growth, people still need to buy the same amount of food. The F&G discounters have taken advantage of this by extending their range to cater for all consumer needs and growing their premium and fresh ranges to ensure that they can be a one-stop-shop for the weekly shop.”

    GlobalData forecasts DIY & gardening and homewares will grow 46.6 per cent and 42.6 per cent respectively for the period 2017-2022, as discount retailers gain market share from mainstream DIY retailers by offering consumers lower cost solutions for household maintenance and upgrades.

    “Indeed, the rollout of larger out-of-town store formats has facilitated broader ranges, providing them with more authority in the home sectors,” says Johnson-Jones.

    “Consumers are likely to perform fewer and smaller upgrades on their homes during the forecast period due to declining disposable income. This will benefit discount retailers homewares sales as they continue to improve their shopper appeal by increasing their range and incorporating greater trend influence – while ensuring affordability which is crucial for driving impulse and gifting purchases.

    “The discounters have expanded their range in the DIY & gardening market at a time when consumers are seeking reduced cost solutions for doing up their homes and gardens – B&M will particularly outperform in this area as it adds garden centres to its retail estate over the next few years,” she concluded.

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  • Lidl launches Chinese web shop

    Lidl launches Chinese web shop

    German supermarket chain lidl launched its own web shop in China on Alibaba’s online platform, Tmall Global, similar to what many other Western companies have done.

    The web shop, launched this week, will offer several of Lidl’s private labels. European products have been very popular in China and Lidl therefore wants to introduce its Combino, Bellarom and Sondey brands to the nation. For the time being, it will focus on cereal and dry food brands, but the company will most likely expand its product range if the web shop is deemed a success.

    Lidl will ship the products straight from Germany, imported through a subsidiary in Hong Kong. It is a different approach to competitor Aldi, which also has a shop on Tmall Global, but imports its products from Australia.

    This is yet another Western company that will try to please the Chinese consumer through Tmall, thanks to Alibaba’s attempts to entice Western companies to use its platform. Chinese consumers have little faith in their own local products and are yearning for alternatives, which they now find on Tmall Global.