Discounters in Italy

PROSPECTS

Aldi’s strong entrance to pose future competition to leaders

After several years of planning and announcing its Italian entrance, during 2018 Aldi finally opened its first store in the country, followed by a series of other grand openings in its Northern Italy locations. Discounters prospered in Italy due to the recession, allowing it to record strong value growth.

Lower prices no longer primary reason for choosing where to shop

During the recession, discounters prospered due to the offer of lower-priced products that covers both groceries and non-groceries. However, towards the end of the review period, Italian consumers showed greater interest in more premium groceries, in many cases looking for value over price.

Bread and fresh produce in focus

The quality of fresh fruit and vegetables is a focus for all retailers across all channels, given that consumers look for healthier and more premium grocery products. Within discounters, however, the offer has been fairly limited and of medium quality, thus leaving many customers unhappy with quality and flavour.

COMPETITIVE LANDSCAPE

Eurospin retains leadership

Eurospin Italia retained its lead of discounters in 2018, despite losing value share. It was followed by Lidl Italia and MD Spa.

Lidl Italia launches urban store format

In February 2018, Lidl Italia launched a new urban format that focuses on environmental sustainability. The store is deployed on two levels, with a photovoltaic system that covers 25% of the store’s electricity needs.

Tuo Di' outlets continue to be sold to other players

Although still being in operation with a limited number of outlets, Tuo Di' stores continued to be sold, as a way for its owner to recover from administration. In April 2018, 21 outlets were purchased by Megamark (Selex Gruppo) in Campania, while an additional 61 were acquired by In’s (Gruppo Pam SpA); in May, 13 outlets became part of Prix Quality SpA.

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