Grocery discounters hit bump in growth

15th April 2004, Comments 0 comments

15 April 2004, BERLIN - Grocery discounters in Germany, whose rapid growth has shocked traditional chains, appear to be hitting a bump in growth, according to market researcher Wolfgang Twardawa in remarks to the German newspaper Die Welt. The two main operators, Aldi and Lidl, have both mounted a major push into eastern Europe and are currently expanding in Scandinavia. Both companies are family owned and follow the same formula: a tightly limited stock range built around own-brand goods. "The discounters

15 April 2004

BERLIN - Grocery discounters in Germany, whose rapid growth has shocked traditional chains, appear to be hitting a bump in growth, according to market researcher Wolfgang Twardawa in remarks to the German newspaper Die Welt.

The two main operators, Aldi and Lidl, have both mounted a major push into eastern Europe and are currently expanding in Scandinavia. Both companies are family owned and follow the same formula: a tightly limited stock range built around own-brand goods.

"The discounters' growth has weakened significantly," said Twardawa, quoting figures obtained by his GfK market-research company for January and February. Year on year, the average sales growth at Aldi and Lidl and rivals Penny, Plus and Netto was just 1.2 percent.

"The first figures coming in for March show the trend is continuing," said Twardawa in remarks for publication on Thursday.

In 2003, Aldi increased its German sales by 5.5 percent and number two Lidl by a whopping 12 percent amid an overall fallback in German retail sales of 1 percent. That prompted predictions that traditional full-range supermarkets were headed for extinction.

Last year, more than 38 percent of grocery sales in Germany were through the discount outlets.

 

DPA
Subject: German news 

 

 

 

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