Sunday, February 17, 2019

Lidl & Aldi Went to School Listened, Learned, now Lead

Within every business sector there are winners and there are losers.  One sure way to determine who is winning is to look within a sector and see just who is growing, expanding by building new units while expanding into new geographic territories simultaneously.  There are two standout companies globally, and in the U.S., they are the same two Aldi & Lidl according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  
A new study by Bain found 30% of shoppers at mass and traditional grocery stores also regularly shop at Lidl and Aldi.  Why, well as regular readers of this blog know the leadership of both Aldi & Lidl have listened to the consumer, learned, and then gave the consumer the experience they wanted from a grocery store according to Johnson. Here is more of what they found:
“The figures were especially strong for Aldi, which the survey indicated was gaining customer acceptance along with its move to expand assortment to premium tiers. Its consumer advocacy rose to 55% in 2018 from 46% a year earlier and outperformed in the two areas that according to Bain customers care about most: “best everyday low prices” and “best value for the money.”
Winning the Battle for Share of Stomach

Consumer advocacy is a predictor of future success, because promoters—or a company’s biggest fans—tend to spend more, purchase more frequently and devote a higher share of their overall spending to retailers than do detractors, or consumers giving company a low rating. Aldi had the third-best NPS of 25 retail brands in the Bain study, while Lidl ranked 12th in that group. Bain did not identify the companies in the provided rankings but said the group included supermarkets, mass merchants and warehouse clubs, and excluded convenience stores and dollar stores.
Lidl, which entered the U.S. less than two years ago, is still tinkering to find a profitable model, but has captured 3% or greater share in five of the seven markets studied in summer 2018, gaining spending from traditional grocers, Bain said.”
The simple fact is Aldi & Lidl have given consumer what they asked including price, value, service, and discovery according to Johnson. They did that while edifying operational efficiencies giving them a competitive advantage over traditional grocery retailers who take pride in doing what they have always done and doing in the same way according to Johnson.  We ask Why?  Success does leave clues and giving the consumer what they want should be you first clue every day. 
For international corporate presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. For more information visit , or call 1-253-759-7869

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