The colossus discount German ALDI – in celebrating its first 5 years of success in Italy in Milan – presents a development plan which envisages an increase in sales outlets in the north of the country and the internationalization of Made in Italy in eleven of the countries where the group operates globally.
I discount in Italy they have conquered a third of the market share retail. And their growth continues despite inflation which, according to Nielsen data, is in the segment low price it would have reached peaks of 20% (equal to double that recorded in supermarkets).
1) 'ALDI price' and 'private labels', the German discount's recipe discount tedesco
'Inflation it is everyone's problem with which we too must measure ourselves', explains the country managing director of ALDI Italy Michael Gscheidlinger. 'We decided to keep our 'ALDI price', i.e. the policy of the best value for money on the market'. As? 'By absorbing cost increases with a reduction in margins, but also thanks to theoptimization of processes and resources. For example, we have replaced all glass packaging with recycled plastic packaging, while maintaining the quality of the product'.
La private-label it is the second ingredient of the ALDI formula and expresses about 80% of the offer. With different product lines such as, in the department food, 'The colors of flavour' (fresh fruit and vegetables), 'Region you go''Bio Nature','The Farm'. The assortment is rich in DOP and IGP products Made in Italy, from the Lagorai cheese of the Province of Trento to the bresaola of Valtellina IGP and the burrata of Andria IGP, always at private-label. Rather than the manufacturer's branded Grana Padano DOP such as. Everyone, ca va sans dire, to 'ALDI price'.
2) ALDI, the expansion plan of the German giant in Italy
The expansion plan of ALDI in Italy, continues Michael Gscheidlinger, will take place in two phases.
2.1) First phase
The first phase development plan of ALDI Italia integrates human resources, organic food offer and digitization:
– recruitment of 200 employees,
– implementation of the organic assortment,
– introduction of the digital label and speeding up of cash operations, today one of the company's weak points, also through new automatic cash machines,
– customer loyalty and digitization of offers via Whatsapp.
2.2) Second phase
The second phase will be dedicated to the opening of new points of sale, starting from Seveso (Monza Brianza, Lombardy). With the prospect of increasing the capillarity of the distribution of ALDI discounters (already 160) in Northern Italy. Southern Italy, on the other hand, unfortunately, for the moment, is outside the growth plans of the German giant.
The expansion it will be accompanied by opening up to new product suppliers Made in Italy. With this in mind, ALDI participated in the formidable 2023 edition of TuttoFood at Rho Milano Fiera and plans to participate in Marca, in Bologna, in January 2024. In addition to other international exhibitions.
3) Organic growing
The biological department of ALDI Italia today includes 130 references - 4,3%, out of a total of about 3 thousand - and boasts important growth prospects. Also and precisely in the sector discount, under the banner of the 'democratization of bio' that this site has been calling for years e it is finally happening.
'We are able to contain the increase in costs that the market has seen especially in the organic department, also thanks to the solid relationships with our suppliers that we tend to reiterate through annual tenders'.
Among Aldi's organic suppliers are some large Italian companies such as Agribologna, Spreafico, Cultiva, Santacroce for Tropea IGP onions.
4) International horizons for ‘Made in Italy’ supplies Made in Italy
'ALDI is always open to welcoming new suppliers who adhere to its values and standards. We already work with major food manufacturers Made in Italy, not only in fresh.
The benefit of joining ALDI's supplier list is the ability to trade within a international network of shops where the excellent Made in Italy food products are increasingly in demand. (1)
Through our logistics platforms, we can facilitate the process of internationalization of companies in the country, guaranteeing a placement of their products in a premium price segment' (Bernadette Huber, ALDI Italy, Purchasing Director).
5) Consumer preferences
During the press tour, the results of a have been disclosed market research conducted by AstraRicerche on behalf of Aldi in April 2023, on a sample of over a thousand interviewees aged between 18 and 65.
According to the study, it is precisely the departments dedicated to food products where customers spend the most time.
5.1) Discount is increasingly similar to retail
'The data show us that the methods of visiting our stores do not differ much from those of supermarkets. Probably because today the discount formats of thirty years ago no longer exist and the stores guarantee a shopping experience very similar to that of the supermarket in terms of the depth of the assortment and the organization of the spaces and the design of the store.
The frozen department marks an overtaking of supermarkets because it is more frequented by 3,2% of consumers, 6% of the total discounters, against 1,9% of supermarkets', explains Cosimo Finzi, director of AstraRicerche.
5.2) The most attractive elements
Among the most attractive elements of the store prevail
- indications of offers/promotions (55,3%),
- the price tags (49,8%),
- order and cleanliness (39,1%),
- the arrangement of products (35,4%),
- the presence of short-term theme areas such as theme weeks (18,2%).
The data relating to the format of the store bring ever closer the perception that the consumer has of discount to that of supermarkets since the indications of the various departments/products are considered attractive by 14.% of the sample for i discount and by 18,7% in supermarkets. The same goes for the presence of staff and assistance (13,9% and 18,4%) and the presence of promote (4,2% and 6,2%).
5.3) ALDI Italy, ecommerce is still farecommerce it is far
An internal analysis of Aldi on its customers has recorded that the shopping experience of consumers mainly rewards the pleasant colors of the shops, the clear indications on the walls, the background music, the correct temperature and the deep assortment which obtained a vote which, in on a scale of one to 10, score 7,8.
The low prices, which represent the beating heart of the policy of the discount, do not, however, make starting a platform sustainable yet ecommerce Aldi.
Mariangela Latella
Footnotes
(1) ALDI is now the fourth italian retailer globally – after Walmart, Amazon, Schwarz – with 130,4 billion in turnover. v. https://nrf.com/blog/look-2023-top-50-global-retailers
Mariangela Latella
Professional journalist specializing in agriculture. You deal with the global agricultural and agri-food market, ecological transition, green economy.
