Cons Insights Europe June 07 Media

8/2/2019 Cons Insights Europe June 07 Media

1/12

consumer insight

The Hard Discounter Report

The current millennium hasheralded the emergence odiscounters across Europe and

the recognition o a new orcein developed retailing. Over thelast ew years, the growth o thisormat has taken many retailersand manuacturers by surprise andtriggered a clear need or responsestrategies to capitalise on the

growth trend.

Designing eective response strategies has, however, been notably

dicult given the absence o actual, objective inormation on

discounters. The intentionally low visibility o prominent players

within the discount segment has contributed to this and stymied

eorts to create a useul appreciation o the workings o the discount

channel. A deliberately low media prole, unavailability o publishedresults and lack o cooperation with industry bodies and service

providers have made the discounter segment almost impenetrable.

For the rst time, The Nielsen Company, the worlds leading

marketing inormation company, has been able to measure sales in

this growing sector through its proprietary Hard Discounter

research method and has also integrated these results with other

areas including Analytics, Consumer Panel to present the best

prole and understanding o Hard Discounters today. By tracking

discounter sales trends in a systematic manner or the rst time,

we have uncovered the aspects that are dening and driving thediscounter phenomenon in Europe.

Admittedly, the size and scope o any exercise to understand

discounters is a demanding one that entails dealing with an

enormous amount o data and statistics. To create greater clarity

this report ocuses on two o the largest and pre-eminent players

within this segment. Both Aldi and Lidl are synonymous with

discount retailing and are clear leaders within the segment. For

many, they are the bellwethers o the discount world and their

strategies are a powerul indicator o where the discount channel is

heading and the width o tactics it typically employs in the markets

where it exists.

Europe June 2007

An Overview o Aldi and Lidl in Europebased on The Nielsen Companys coverage o the Hard Discount channel across Europe


2/12


3/12

The lack o uniormity in Aldis progression and country-specic

perormance is also refected at a category level. At a pan-European

level, Aldis share o trade across categories appears to vary

widely. Despite a remarkable 17% share o trade or ready-to-drink shel stable juice across Europe, it has a meager 2% share o

deodorants. These disparities point to the act that consumers may

be choosing to shop within discounters or some items but not or

others. It also means that in some markets, non-discounters and

manuacturers have adopted successul strategies to ght o Aldi.

Interestingly however, Aldis strength in select categories seems

to be geographically consistent. When analysed or their relative

importance to Aldis assortment, the categories that registered a

high importance were common across countries, pointing to its

ability to deliver better value to consumers or certain categories.

(See Charts 3 and 4)

In terms o pricing, despite the act that Aldis product quality is

typically good, it still occupies the position o a price ghter. On

average, its price across categories is lower by a sizeable 40% and

slightly less (30%) in Germany. Once again, a lack o uniormity is

evident in pricing as well. Price alignment or the same category

is limited with the same category operating at dierent levels o

discount to the average category price across dierent countries.

There are also actors other than price that may be working in

avour o Aldi within some categories vis--vis others. For instance,

in the Toilet Paper category, a limited 10% discount appears

to have resulted in a 16% share o trade or Aldi. Conversely, in

categories like Shampoos and Deodorants, a deeper level o price

discount (-50%) has not necessarily guaranteed a higher share o

trade. Once again, variations in product quality, pricing strategies

and emotional pay-os appear to be at play.

Typically characterized by smaller category assortment sizes,

discounters use more limited product ranges to ensure streamlinedoperations, ecient sourcing and better shel utilization. This results

in tremendous savings that enable greater price compression. Aldi

too oers an average o just seven items per category with each

item clocking sales o over 10 million annually. By limiting the

number o items, Aldi manages to ensure that suppliers produce

sizeable volumes o each item in a single run and extract even

greater economies o scale. Faster turnover and logistically ecient

pallets result in greater product reshness and even more protable

inventory management. (See Chart 5)

Belgium

France

Germany

Ireland

Netherlands

TOTAL

11.9

2.0

16.2

0.8

8.2

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

9.7

Total FMCG

Juice - Ready to Drink (shelf stable)Toilet Paper

Coffee - InstantPaper Towels

Chocolate ConfectioneryChips/Snack Mixes

Feminine Hygiene - Panty LinersCoffee - Beans/Ground

Pet FoodFacial Tissues/Handkerchiefs

Toilet CleaningDish Cleaning - Automatic

TOTAL FMCGYoghurt

Dish Cleaning - HandPasta/Noodles

Butter/MargarinePackaged Water

Laundry DetergentsBaby DIapers

Air FreshenersHousehold Cleaners

Feminine Hygiene - Towels/PadsFabric Softeners

InsecticidesFeminine Hygiene - Tampons

Hair - StylingBeer

DeodorantsHair - Colour

Hair - Shampoo

Shaving - BladesShaving - Razors - Disposable

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0

Share Value

250

200

150

100

50

0

Shaving

-Blad

es

Hair-

Colou

r

Shaving

-Razo

rs-D

isposable

Hair-

Sham

poo

Deod

orants

Hair-

Stylin

g

AirFresh

eners

Toile

tClea

ning

Femini

neHygien

e-To

wels/

Pads

Femi

nineH

ygien

e-Ta

mpon

s

Fabri

cSoft

eners

Butte

r/Marg

arine

Femi

nineH

ygien

e-Pa

ntyLin

ers

Pape

rTow

els

PetF

ood

Laun

dryDe

terge

nts

Packa

gedW

ater

Yogh

urt

Househ

oldClea

ners

Coffe

e-Be

ans/G

round

Pasta

/Noo

dles

ToiletP

aper

Juice

-Rea

dyto

Drink

(Shelf

Stable

)

Belgium

France

Germany

Netherlands

Weaker Aldicategories

Stronger Aldicategories

3000

2500

2000

1500

1000

500

0

Aldi North: 4274 Stores Aldi South: 2344 Stores

395

240

670

2425

12

410

122

370

1616

30 8

320

Belgi

um

Denm

ark

Fran

ce

Germ

anyN

orth

Luxe

mbo

urg

Neth

erlan

dsSp

ain

Austria

Germ

anyS

outh

Irelan

d

Switz

erlan

d

Unite

dKing

dom

Chart 1

Chart 2

Chart 3

Chart 43

Aldi is present in 14 European countriesNumber o Aldi stores in Europe

The share o trade o Aldi is very dierent by countrydue to number o stores and customer demandShare o trade: Aldi, by country

The share o trade o Aldi in Europe is very dierentby categoryShare o trade: Aldi, by category

The Aldi strength by category tends to be similaracross countriesCategory relative importance in Aldi assortment


4/12

Within Aldis stores, the assortment is predominantly local with an

extremely limited presence o branded goods. When branded goods

do get listed within discounters, it is usually with just one item. In the

last year (2006), less than ve new brands were introduced in Aldi

stores, or example in Belgium, Netherlands or France.

A notable aspect o Aldis assortment strategy is that it is constantly

reviewed and revised to ensure that only the highest selling items

continue in order to maintain protability. On average Aldi tends to

introduce 350 new items or strongly modied items per year in its

stores.

Focus on Lidl in EuropeLidls expansion across Europe has been aggressive and ongoing.

Currently present in 20 countries across Europe, Lidl has opened stores

at the rate o one per day over the last 15 years. Its largest markets in

terms o the number o stores it has in each are Germany, France, Italy,

Spain, UK and Belgium. Across this wide network o stores Lidl ollows

a centralized approach to assortment management with the same

assortment present in each store.

Like Aldi, Lidl too does not have its stores distributed

evenly across the markets where it is present. Its

wider range o geographic ocus and lower

overall store density has resulted in broad

variations in its share o trade in each

country. In markets such as Germany and

Greece, Lidl has cornered a respectable

share o trade but appears to be less

successul in Ireland and the Netherlands.

The turnover per store mirrors the trend in

overall share o trade within a country. Together

with dierences in store numbers, the average

turnover per store indicates that this is also likely to refect

consumer demand or the discount channel in these countries.

Analysed more closely at a category level, Lidls share o trade diers

vastly across individual categories when viewed at a regional level. In

categories like Juice, Toilet Paper and Chocolate Conectionery, it has a

high single digit share o trade but in categories like Shaving Blades and

Razors, Hair Shampoo and Hair Colour, its share is negligible.

(See Chart 6)

Notably, Lidls category strengths are observed to be identical across

boundaries. When analysed or a given categorys relative importance

in the Lidl assortment, the results are similar across countries.

Exceptions to this situation occur only in a ew categories where a

dierence in local tastes infuences purchase behaviour strongly. Forinstance, categories like Beer show wide variations due to dierences

in consumer preerence that may be likely to avour more local brands.

(See Chart 7)

Lidls pricing level too appears to change depending on the country and

category under analysis. At a country level, its price dierential versus

the rest o the market is almost always over 30%, ie Lidls products

retail or less than 70% o the market price. The sole exception to

this being Germany where Lidl possesses a lower dierential o 18%

compared to the rest o the market. This is primarily due to the act

that Lidl in Germany stocks branded goods thereby lowering the

degree o discount between its products and the rest o the market on

an overall basis.

True to its discount positioning, Lidl, like its counterpart Aldi, is a

price ghter that sells products at a discount to other players in a

given category. The level o discount does change depending on

the category. In categories like Toilet Paper, Baby Diapers and Facial

Tissues, the discount hovers between 10%-20%. This diers

drastically compared to a much deeper level o discount

in other categories such as Deodorants and HairShampoos where the level o discount goes as low

as 60%-70%.

Interestingly, the pattern o discounts within

categories is not consistent across the markets

where Lidl is present. For each category,

dierences in pricing relative to the countrys

average price or that category show stark changes.

This lack o pricing alignment is likely to be the result

o lack o uniormity in terms o competitor pricing. This

can be seen clearly by comparing the price dierential or each

o the categories Lidl is present in with its share o trade within that

category. In categories like Juices, Toilet Paper and Instant Coee, Lidl

owns a reasonably good share o trade despite being only 15%-30%

lower than the category average. In categories like Deodorants and

Shampoos where Lidl trades at a much higher discount (approximately

60%), it owns a paltry share o trade. This indicates that price is not

the only determinant o consumer otake and other actors such as

preerence and perceived quality are at play. (See Chart 8)

4


5/12

For a discounter, Lidl appears to have a wider assortment within

each category and country. On average, it lists about 13 items per

category. This average is distorted towards the higher side in countries

like Germany where Lidl also carries branded goods. A wider range is

also the result o the act that branded goods within Lidl do not act asreplacements or Private Label but are carried in addition to them.

Unlike Lidls Private Labels which are matched across countries and

ollow a common basket o products, its assortment or branded

goods tends to be more country-specic and comprises local brands.

While Lidl stocks an average o nine branded goods in Germany, it

carries no branded goods in the Netherlands and Portugal. On the

other hand, in France or instance, Lidl has introduced multiple brands

o Bahlsen, Ferrero, Masteroods, and Unilever over the last year.

This signals a country specic strategy to assortment management

that complements the existing regional assortment present in all Lidl

stores. On average Lidl introduces two SKUs or every brand it carries.

Chart 5

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0Austria

Large proportion of goodson palletts

D en ma rk F ra nc e G er ma ny(Aldi South)

Germany(Aldi North)

N et he rl an ds S pa in A ve ra ge

8.3

5.2 5.3

8.7

6.7

5.3

6.7 6.6

Juice - Ready to Drink (shelf stable)Toilet Paper

Chocolate ConfectioneryCoffee - Instant

Coffee - Beans/GroundChips/Snack Mixes

Dish Cleaning - HandHousehold CleanersYoghurt

Packaged WaterTOTAL FMCG

Facial Tissue/HandkerchiefsLaundry Detergents

Pet FoodFeminine Hygiene - Panty Liners

Butter/MargarineBaby Diapers

Fabric SoftenersFeminine Hygiene - Tampons

Dish Cleaning - AutomaticFeminine Hygiene -

Toilet CleaningAIr Fresheners

BeerHair - Styling

DeodorantsHair - Shampoo

Shaving - Razors - DisposableHair - Colour

Shaving - Blades

0.0 2.0 4.0 6.0 8.0 10.0 12.0

Share Value

Chart 6

250

200

150

100

50

0

Shaving

-Blades

Hair-Colour

Shaving

-Razors-Disposable

Hair-Shampoo

Deodorants

Hair-Styling

FeminineHygiene-Towels/Pads

DishCleaning-Automatic

FeminineHygiene-Tampons

FabricSofteners

Butter/Margarine

FeminineHygiene-PantyLiners

PetFood

LaundryDetergents

Chips/SnackMixes

Coffee-Beans/Ground

Coffee-Instant

ToiletPaper

Juice-ReadytoDrink(ShelfStable)

Belgium

Czech Republic

France

Germany

Hungary

Netherlands

Chart 7

0.0

-10.0

-20.0

-30.0

-40.0

-50.0

-60.0

-49.6

-38.4

-44.8

-18.9

-38.3

-34.5 -33.7

Belgium

CzechRepublic

France

Germany

Greece

Hungary Netherlands

Chart 85

The average number o items oered by categoryremains very limitedAverage number o items by category

The share o trade o Lidl in Europe is verydierent by categoryShare o trade: Lidl, by category

The Lidl strength by category tends to be similar

across countriesCategory relative importance in Lidl assortment

Lidl has opened storesat the rate of one per

day over the last 15years

Lidl is a real price ghter but branded goodsimportance in Germany reduces this levelPrice dierential vs Total country in % (equ sales). All categories in scope


6/12

Comparison of Aldi andLidl in Europe

A combined assessment o Aldi and Lidl in Europe leads to acomparison o the two leading players. In an overall regional

evaluation, Lidl is more aggressive than Aldi with a presence in 23

countries compared to 14 or Aldi. Cumulatively, Lidl has increased its

stores by a multiple o ten over a 15 year time rame. At this rate, it has

ar outpaced Aldi which has seen a doubling o stores over the same

period.

Geographically, Germany is a large portion o the Aldi and Lidl

portolios but is a more predominant part o Aldis presence in the

region representing more than hal its total number o stores. A similar

comparison or Lidl reveals a much lower proportion o stores in

Germany which houses less than hal o Lidls stores in Europe.

An analysis o the number o inhabitants per store in each country

gives us an idea o how store density infuences shopper dynamics.

The average distance a shopper needs to travel to reach an Aldi store

is shorter than the distance a shopper needs to travel to reach a Lidl

store. This can be an important gauge o shopper proximity in a sector

where location has an important bearing on visibility and ootalls.

At a category level, Aldi and Lidl have a lot in common. Their strengths

and weaknesses are similar across Europe and may be symptomatic o

the act that their position in these categories is more a result o their

competitors weaknesses than just their own inherent strength.

(See Chart 9)

The dierences in pricing strategies are demonstrated by their price

dierential to the rest o the market. While they are both at a discount

to the overall market, Aldi claims a stronger discounter positioning on

a comparative basis. This is undamentally due to the greater presence

o branded goods within Lidl which tend to be at a lesser discount

than the discounters Private Label assortment. Again, the variation in

price dierentials across countries is explained by the act that Lidls

assortment o branded goods varies at a country level and its variation

within the assortment is not uniorm across countries.

The key dierence in assortment strategies between the two

discounters is the size o the assortment. Generally, Lidls assortment

size is much larger than Aldi which preers a more rationalized number

o items per store and category. In select geographies like France

and the Netherlands, however, both players maintain smaller, more

manageable assortment sizes.

Apart rom size there are two apparent deviations in the assortment

management practised by Aldi and Lidl. While Lidl has a central

core set o Private Labels ound in every country, Aldis Private

Label assortment is more country specic and less regional. This has

clear implications on the cost advantages related to sourcing since a

centralized approach would provide better economies o scale while

a localized approach customized to local tastes may improve the rate

o otake and hence sales volumes. Another dierence mentioned

earlier is the approach to stocking branded goods. Lidl stocks a greater

number o branded goods per store and category while Aldi stocks a

negligible number.

20.0

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

Aldi Lidl

Shavi

ng-B

lades

Hair-

Colou

r

Shav

ing-R

azors

-Disp

osable

Hair-

Sham

poo

Deod

orants

Hair-

Stylin

gBe

er

AirFr

eshen

ers

Toile

tClea

ning

Femini

neHyg

iene-

Towe

ls/Pa

ds

DishC

leanin

g-Au

tomati

c

Femini

neHy

giene

-Tam

pons

Fabric

Softe

ners

Baby

Diape

rs

Butte

r/Marg

arine

Femi

nineH

ygien

e-Pa

ntyLin

ers

PetF

ood

Laund

ryDe

terge

nts

Facia

lTiss

ues-

Hand

kerch

iefs

TOTA

LFMC

G

Packa

gedW

ater

Yogh

urt

House

hold

Clean

ers

DishC

leanin

g-Ha

nd

Chips

/Snack

Mixe

s

Coffe

e-Be

ans/G

round

Coffe

e-Ins

tant

Choc

olate

Confe

ction

ery

Toile

tPap

er

Juice

-Rea

dyto

Drink

(Shelf

Stable

)

Chart 9

Aldi and Lidl are strong on the very same categories acrossEurope

Share o Trade Aldi and Lidl in Europe (in %)

6


7/12

Threats to Lidl and Aldi

This report is meant to explain the various acets o the discounter

model as it has ormed in Europe and does not intend to evaluate

the eectiveness and/or ineectiveness o various approaches tocountering discounters.

However, it would be useul to enumerate the various competitive

actions and reactions to discounters such as Aldi and Lidl that have

been applied by other retailers. These reactions all into various

categories and cover a gamut o tactical actions.

Promotion

Competing chains have realized the importance o in and

outs or durables and textiles and that it oers shoppers an

incentive or the weekly visit to Aldi and Lidl. This was proven bythe importance o start o eature day or both chains and now

an increasing number o chains oer similar one time deals to

attract ootalls.

Assortment

Chains have extracted greater pricing fexibility by using a basic

assortment composed o both high quality and very low prices

and by purchasing large quantities o the same item across

countries. These economies o scale have been applied to

various aspects o sourcing such as logistics and pallet handlingo goods to create greater price parity. The generic multi-

country ranges created as a result have had an impact on Aldi

and Lidl.

Active and regular re-assessment o assortments by competing

retailers have matched the vibrancy o Aldi which tends to

replace or strongly modify 350 of its 1,000 items per year in its

assortment.

Lidl tends to pay limited attention to local needs by promoting

an European assortment. In such a scenario, non-discount

competitors have ound gaps that can be exploited by stronglocal brands catering to local sensibilities in categories where

this matters.

Product Dierentiation

Retailers and manuacturers have created strong brands

with clearly dened economic, unctional or emotional value

additions recognized by consumers. This has been bolstered

with innovations that cannot be easily imitated.Eective advertising has helped manuacturers dierentiate

their brands strongly in the mind o the consumer. This increases

the barriers to switching to the brands oered by Aldi and Lidl,

and creates greater loyalty amongst shoppers.

Segmentation and Targeting

Eectively segmenting and targeting consumers by making

products that are recognized by them as a more relevant

solution to their needs has been a strategy employed by

non-discount retailers. With a greater width o assortment,catering to shoppers diering needs helps create a sense o

something or everyone and can deliver on a variety o shopper

requirements.

Format Innovation

Some retailers have created innovative ormats to capitalize

on the importance o proximity and its infuence on shopper

decisions. By identiying interception points based on Aldi

and Lidls location, retailers have been able to create Express

ormats.

Smaller store variants that cater to the shoppers need or the

convenience o shorter distances to stores; new sel-service

scanners in mid-sized stores have also made the shopping

check-out experience aster and thereore a more preerable

option.

Research

The increased availability, granularity and eectiveness o data

and research have been used heavily by competing retailers

and manuacturers to optimise their oering to clients. Aldi and

Lidl are known or limited interest and investments in market

research.

7


8/12


9/12


10/12

Homing in on the Discounter Phenomenon a Consumer Panel View o Aldi and Lidl inEurope

An overview o six representative European markets that

include the top ve countries and Portugal show us that Aldis40 million shoppers and Lidls 60 million shoppers combined

outnumber the cumulated shoppers o all other retailers across

these countries. Despite this, and the act that Lidls geography

has resulted in more than hal its shoppers residing outside its

country o origin, a majority o the Aldi and Lidl shoppers are

concentrated in Germany. (See Charts 10 and 11)

Lidl

Aldi*

Banner 3

Banner 4

Banner 5

*Aldi excluding Switzerland

60.3

42.3

26.0

20.6

19.8

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0

Aldi

33.129.1

10.1

7.0

5.5

4.52.71.4

4.3

4.8

Lidl

Finland

Portugal

Italy

Spain

UK

France

Germany

* Aldi excluding Switzerland

France

Germany

UK

85.6% 85.0%84.5%

18.3%

14.8%

18.3%

16.4%

19.4%

17.3%

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%2003 2004 2005

* Aldi excluding Switzerland

0

40.0

30.0

20.0

10.0

0.0

Portugal

UKSpain

Italy

France

Aldi Lidl

France

GermanyGermany

10,000shoppers perstore mark

500 1000

Number of stores

*Aldi excluding Switzerland

Numberofshoppers

TotalShoppersforthisRetailerin2005(millions)

1500 2000 2500 3000 3500 4000 4500

Finland

Chart 10

Chart 11

Chart 12

Chart 13

Analysed individually, Aldi and Lidl stores emphasize this eature even

more. Looking at data across 66,000 households (using Nielsensproprietary Hard Discounter research method) or each household

during each shopping trip indicates that Aldis conservative approach

to market expansion has resulted in a comparatively lower penetration

in large markets like France and the UK. The number o shoppers it

attracts per store however is similar to Lidl and this may be indicative

o latent demand that has the potential to be tapped in the uture.

(See Charts 12 and 13)

What does consumer panel data tell us about the discount shopper?

10

Total number o shoppers by retailer(Finland, France, Germany, Italy, Portugal, Spain, Switzerland, UK -134 Millions Hhs - 2005)

Aldi and Lidl: number o shoppers by country

Source: Nielsen Homescan




(Finland, France, Germany, Italy, Portugal, Spain, Switzerland, UK -134 Millions Hhs - 2005)

Aldi* - shopper penetration by country(Shoppers in % o countrys households - 2005)

Aldi and Lidl: number o stores and shoppers(Finland, France, Germany, Italy, Portugal, Spain, Switzerland,UK -134 Millions Hhs - 2005)


11/12

Lidl on the other hand, has employed its wider network o stores to

eectively penetrate the geographies it is present in. An analysis o

shoppers in each country indicates that Lidl has managed to attract74% o Portuguese shoppers, 60% o Finnish shoppers and nearly

40% o French shoppers. These numbers are proo that the discounter

concept has taken root rmly across very dierent cultures and

shoppers. (See Chart 14)

Chart 16

Germany

UK

France

85%

% Penetration Annual spend/shopper () Annual trips per shopper Spend per basket ()

19%

17% 321

222

544 27

10

10 33.46

22.46

20.15

Germany

Portugal

Finland

France

Spain

UK

Italy

% Penetration Annual spend/shopper () Annual trips per shopper Spend per basket ()

20.9%

28.3%

37.1%

40.1%

61.9%

73.5%

74.8%

215

224

203

359

228

372

356

9

11

8

12

17

14

19

23.92

20.00

25.42

30.70

13.40

27.16

18.74

Chart 14

Yet, there are no simple answers to what works best. Even with the

discount ormat becoming a widely known option in the retailing

environment, its popularity diers across markets. In Aldis case,

shopper buying behaviour displays wide fuctuations in the value and

requency o shopping trips. In Germany or instance, Aldis shoppers

spend an average o 544 Euros per year and visit Aldi stores at least

twice each month. In France and the UK however, Aldis shoppers

spend much less within Aldi stores and only visit 10 times a year.

(See Chart 15)

Lidls shoppers on the other hand seem more consistent regardless

o geography. Lidls German shoppers spend an average o 356 Euros

within its stores and visit them 19 times annually. This makes themvery similar to Lidl shoppers who visit Lidl with the same requency

in countries like Finland, France and Portugal. These numbers suggest

that Lidl has managed to become an ingrained part o the shopping

populaces purchase routine and not an occasional occurrence.

(See Chart 16).

These observations oer interestingcues to approaching the hard discountphenomenon. By taking the shopperperspective, it becomes clear thatthere are larger strategic themes that

are dictated by the plans and actiono each discount giant. But that thesethemes are being propelled orwardby real changes in shopper behaviourduring the shopping trip. It is these cuesthat, i studied more closely, can helpdivine the uture o retailing in Europe.

71.6% 74.2% 74.8%

73.5%

40.1%

28.3%

56.0%

38.6%

36.0%

26.6%

44.0%

37.8%27.7%

24.4%

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%2003 2004 2005

Finland

France

Germany

Portugal

Spain

UK

61.9%

37.1%

Chart 15

11

Lidl - shopper penetration by countryLidl shoppers - purchase behaviour across countries



Shoppers in % o countrys households - 2005

Aldi shoppers - purchase behaviour across countriesGermany, France, UK - 2005

Germany, Portugal, Finland, France, Spain, UK, Italy - 2005


12/12

I have:

Copyright 2007 The Nielsen Company.All rightsreserved. Nielsen and the Nielsen logo are trademarks orregistered trademarks o CZT/ACN Trademarks,L.L.C.

insights I can act on

a vital strategic partner

a competitive edgepeace o mind

I have Nielsen.

Cons Insights Europe June 07 Media

Documents

Transcript of Cons Insights Europe June 07 Media