SUPER DISCOUNTERS

1
SUPER DISCOUNTERS
DEPARTMENT STORES
DISCOUNTERS
2
Department Stores are Losing the Battle
3
Who is 2?

• 1 is WalMart 1T in 2010
• 2 is _______
• Groceries is the name of the new game Customers
  TRAFIC

4
As we talk.
5
The new Phenomena
6
What is all about?

• Price, Price Price
• Value
• Easy shopping
• Low Margins
• Efficient operation S.C

7

• Best quality for the lowest price
• Simple retail, easy access
• Limited assortment
• Tuff vendors policy
• International expansion

8

• To millions of shoppers around the world, Aldi
  represents superb quality at unbeatable prices
• SKUs We dedicate our shelf space to the most
  frequently purchased grocery and household items.
  
• Buying power This allows us to get the lowest
  prices from our suppliers then pass on the
  savings to you. And because most of our range is
  own label, youre not paying inflated brand-name
  prices either.

9
ALBRECHT DISCOUNT

• Streamlined shoppingWe cut out anything that
  increases costs and pushes up prices. That
  includes elaborate displays, fussy presentation
  and in store gimmicks. It keeps overheads to a
  minimum so you pay for food, not unnecessary
  frills.
• Strict quality standardsAll our buyers are
  experts in their chosen fields, whether its our
  premier quality, Specially selected range, our
  Be light products for healthier eating,
  award-winning wines, mouth-watering deli section
  or freshly sourced bread, fruit and vegetables.
  By only selling the best, weve earned  accolades
  from all sorts of organizations, including The
  Good Housekeeping Institute, best magazine,
  chat magazine and The Grocer.
• Our fresh approach to food adds up to big savings
  for you. In fact our normal prices usually beat
  supermarket sale prices. Thats incredible
  value every day.

10
NON FOOD
UTILIZING THE TRAFIC
CREATES THE TRAFIC
11
CREATES THE TRAFIC

• TV STAR
• SELLS MORE THEN BABANAS

12
In a taxi heading towards Aldi's head office in
Atherstone, Warwickshire, the driver shows off
his new sat-nav. His daughter had seen the gadget
advertised at her local Aldi store at the bargain
price of 119.99 and snapped one up for her
father. And while she was there, she did her
weekly grocery shop too.
Coming SOON
13
ENJOYS THE TRAFIC
14
Lidl promotions
15
Aldi Reaches Tipping Point as Discount Enters
MainstreamRetail Week, 28 August
From
To
16
Aldi Reaches Tipping Point as Discount Enters
MainstreamRetail Week, 28 August
Consumer perception of Aldi has fundamentally
shifted and it has finally been accepted as a
mainstream UK grocer, managing director Paul
Foley believes. Speaking to Retail Week, Foley
said "We have reached our tipping point. We are
convinced if we open in a new location, people
would automatically try us. There is more good
news about us now than the old scepticism."
17
BRANDS
Brand

Equity
Price

• Discounter understand that they need brands to
  attract youngsters and upper class
• Lidl is pushing in Brands to differentiate itself
  from Aldi

18
SUMMARY - Marketing

• Tons of outlets Europe wide
• On-line - direct relationship with end
  consumers
• Customer expects to find fair quality at great
  price
• Easy to shop (park) model
• 90 of public awareness in Germany
• 1 quantity movers per week
• Fairly small in North America

19
SUMMARY - Operations

• Professional expert buying team
• Item selection and price are due to tough
  negotiation
• Special packaging to meet EUR pallet
• The artwork sells colored packaging
• Logistic ability to ship at once all over EUROPE
• Tough Q.A demands and tests certificates
• Smaller quantity test
• Recurrence for 3-4 seasons
• Tough fines policy cutting knife finger

20
ALDI 1
Aldi North
Aldi South
- established in 1913- owned by Karl Albrecht
(Aldi South)and Theo Albrecht (Aldi
North)totally family owned- turnover in 2006
38,6 billion Euro- www.aldi.com - stores in
Germany Aldi North 2.500 storesAldi South 1.600
stores- profit between 3-4
21
ALDI
Aldi North
Aldi South
- number 5 in food afterEdekaMetroReweSchwarz
Groupnumber 8 in textile with 1,1 billion
turnover in 2005
22
ALDI WORLDWIDE
- in total 7.600 stores / means 3.500 outsideof
Germany- each week a new store worldwideAldi
North- Belgium 380- Netherlands 405-
Luxembourg 12- France 680- Spain 130- Portugal
5- Denmark 230
Aldi South- Austria Hofer 369- UK 310-
Irland 34- USA 818- Australia 140- Swiss 31-
Slovenia 29
23
store Aldi North
store Aldi South
Aldi inside
store Aldi in USA
first store in Essen
24
leaflet Aldi South
leaflet Aldi North
25
Lidl 2
store in Germany
- established around 1930- turnover in 2006 30,6
billion Euro- www.lidl.de - stores in Germany
2.700 - Europe total 7.200- profit between 4-5

Wal Mart315 billion 2006USA 3.702 stores
store inside
26
Lidl EUROPEWIDE
- Poland- Greek- CZ- Croatia- Slovenia
Lidl- UK- Ireland- Spain- Portugal- France-
Italy- Austria- Luxembourg- Belgium-
Denmark- Sweden- Norway
27
Lidl leaflet
28
PLUS 3
PLUS store
- established in 1972- Belongs to Tengelmann
Group- turnover in 2007 9,5 billion Euro-
www.plus.de - stores in Germany 2.912 /
worldwide 4.168 stores- soft discounter more
brands / more fresh itemsdifferent locations /
more innovations
29
PLUS - Germany - Austria Zielpunkt- Poland-
Rumania- Spain- CZ- Hungary- Greece - Portugal
PLUS inside
30
Penny Markt 4
- established in 1973 - Belongs to Rewe Group-
turnover in 2006 8,7 billion Euro-
www.penny.de - more than 2.400 stores in
Germany- Stores in ItalyHungaryRomaniaCZ
Penny Markt store
31
Penny Markt stores inside
32
Netto South 5
- established in 1928- Belongs to Edeka Group-
turnover in 2006 3,2 billion Euro-
www.netto-online.de - stores in Germany 1.200
we work already together withhad an turnover of
1,5 mio Euro in 2006 /2007 we will have around
800.000 Euro
Netto store
33
NORMA 6
- established in 1921- turnover in 2006 2,8
billion Euro- www.norma-online.de - stores in
total 1.300- stores inFranceAustriaCZ
34
Norma leaflet