German Retail Blog Podcasts

Aldi crosses the Alps, Lidl arms, Penny freezes


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Soon Robert De Niro won't be the only one talking Italian. Managers at Aldi, Germany's most profitable discounter, are learning the lingo quick so that they can open up shop south of the Alps this year.And when they do, there is likely to be a battle royal on prices throughout the peninsula for the hearts, minds and pockets of Italy's 60m consumers. Lidl Italia, with a head start of 25 years, will surely sharpen prices in defence of its role as the country's leading discount gladiator. This will only put more pressure on number four player, Rewe subsidiary Penny.Meanwhile, rumours abound as to how Aldi intends to conquer sunny Italy. Country manager Max Hofmarksrichter is believed to be negotiating the purchase of a distribution centre from local Coop Carniche in the north-eastern region of Friuli Venezia Giulia. And sources close to industry federation IBC claim that Aldi has been actively recruiting staff in the Triveneto area since December.True to form, parent company Aldi Süd (Aldi South) refuses to comment. All we know for sure is that expansion into Italy is being actively coordinated via Austrian subsidiary Hofer and that head office is in Verona. Currently, the 4,800m² premises are undergoing refurbishment.The real question, of course, is whether Aldi intends to start from scratch when Lidl has already built a substantial empire with more than 11,000 employees, 570 stores and estimated annual revenues last year of €3.6bn.
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German Retail Blog PodcastsBy Mike Dawson