Aldi Süd is implementing a new standardized concept across its German store base to ensure they are a fit for a changing future. The changes are driven by socioeconomic changes in Germany. Recent store refurbishments appear to be resonating well with consumers having seen that Aldi Süd grew its sales by 7.8% in the first eight months of 2017.
What are the drivers of change for Aldi?
Aldi is paying increased attention to the demographic changes that are continuing to reshape the retail landscape. In the German market, these societal drivers are impacting the frequency and size of average shopping trips, whilst shifting shopper streams from out-of-town locations into residential areas. This is placing new pressures on retailers, especially around store design and location.
Why is Aldi doing this now?
Aldi has constantly adapted its product offer to changing consumer preferences since its foundation in the 1960s and is planning to refurbish all its German stores by 2020. The aim is to attract a wider consumer base through improved shopper experiences and curated assortments.
What has changed in store?
In addition to enhancing the experiential capabilities, Aldi has adopted a new curated approach to the assortment. To cater to both elderly and millennial segments, assortment has been expanded to include organic products and brands, and greater emphasis has been placed on convenience and foodservice options. The latter is particularly popular with office employees who visit their stores on a lunchtime mission.
Supporting the simplicity-driven shopper mission, baby products are now grouped together in a unified stand-out health and beauty department with individual lighting, while pasta and complementary sauces are shelved next to each other in an example of a cross-merchandising ploy. Aldi has even introduced some technological enhancements, such as moderate use of digital signage, a coffee machine near the entrance (to cater for the convenience mission) and automated ovens, ensuring bakery items are dispensed fresh and warm. The emphasis is on providing shoppers with what they want in the most convenient way possible. Product placement has been adjusted to further save customers time and make shopping easier with colour-packaging visually segmenting the store and making it more navigable.
Planning for an unpredictable future is challenging. PlanetRetail RNG offers go to market intelligence to:
- Understand the reinvention of the future store
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For more information about how Aldi and other omnichannel retailers are reinventing their physical presence and the new capabilities suppliers will need to develop, please contact us by completing the "Contact us" form.