How can grocery supplier get listed at ALDI?
ALDI NORD and ALDI SÜD are two of the most important retailers in Europe. With their discount concept, they have repeatedly been able to set new benchmarks in the retail sector. This was also recently examined in a study by “Edge by Ascential Retail Insight”. For us, this Retail Insight is about the opportunities, which arise for FMCG producers by cooperating with ALDI.
According to all forecasts, ALDI will continue growing fast in the next few years. Measures are being currently implemented in order to achieve this. Some of these courses of action, such as the introduction of a cashless payment system or the expansion of the delivery system, are processes that won’t have much of an impact on suppliers.
Measures in the following sectors will have a greater bearing on cooperation:
ALDI has built up size and dominance in many of its European markets and is now focusing on high-value markets such as Germany and Austria, where on the one hand it wants to improve significantly in terms of operations, and on the other hand it wants to invest a lot in higher-value assortments and fresh products.
Internationally, the focus is on growth. Numerous new shop openings are planned in emerging regions such as Australia, as well as in already established markets such as the UK and all across the USA.
ALDI is working on revitalizing its store network by renovating and remodeling it´s chain stores. While ALDI is sticking to the discounter model, it is aiming to improve the appearance and quality of its shops by creating brighter, more spacious shops and actively considering more brand listings.
Although ALDI’s product range is more limited, compared to other retailers, it is focusing on the expansion of healthier, organic and fresh foods that are also suitable for the ‘food-to-go’ consumption.
Maintaining the price advantage
ALDI’s retail offer is based on providing consumers with low prices and maintaining the price-quality ratio. If competitors consolidate and form purchase alliances, price pressure will increase, so ALDI will need to optimize efficiencies, created by increasing volumes. This will inevitably lead to closer cooperation between ALDI North and ALDI South in the areas of purchasing, supply chains, product development and marketing, in the future.
On the other hand, we are currently seeing indications of an adaptation of the pricing strategy in Germany. Promotions are being undertaken more regularly, especially with listed branded products. However, every-day low pricing continues to apply to the private label range.
Expanding the digital focus
Recent online initiatives include a wine e-commerce platform in the UK and a transactional website in China (Tmall). ALDI is also working with intermediaries such as Deliveroo in the UK and Instacart in the US to handle online deliveries, which, due to the COVID pandemic, have gained importance among customers.
THIS is what you can do as a supplier in each area for your general success:
- Evaluate food trends and look for opportunities to fill gaps in the ALDI assortment.
- Increase innovation, develop exclusive products or new premium varieties for individual categories where ALDI is expanding.
- Develop smaller packaging units that are also suitable for “food-to-go” consumption.
- Review the repercussions of ALDI’s sustainability programs and revise packaging requirements.
- Look for solutions to enhance plastic reduction.
- Invest in inventory management to support ALDI’s expansion of its online grocery pick-up service in the UK and US and meet fast delivery deadlines through middleman delivery partnerships.
- Brands need to align with ALDI’s promotional calendar in order to be included in weekly offers. Placing branded products in the so-called “middle-isle” is a good start for demonstrating brand strength, thus creating a “door opener” in ALDI’s limited assortment core range.
To be successful with a customer like ALDI, the introduction strategy and the assortment concept must be well planned and elaborated (e.g. private label vs. branded product). Often, you only get one chance to present yourself to the respective country buyer. If you need assistance with this or have any other questions about discount development, please contact us.