Discounters in the Netherlands

PROSPECTS

Discounters sees strong value growth despite only a marginal increase in outlets

Discounters saw above-average current value growth within grocery retailers in 2019, although the increase was slightly slower than that seen in 2018. This strong performance was thanks to continued expansion by the only two players, Lidl and Aldi, although this was only slow, with a total increase of three outlets.

Success of Albert Heijn weakens the appeal of hard discounting

Compared with countries such as Germany, discounters has traditionally been a less successful channel in the Netherlands. Socioeconomic reasons include the lower level of inequality and a lower share of the population living below the poverty threshold.

Greater focus on brands, fresh food and baked goods

With the growth prospects of hard discounting limited in the forecast period, both Lidl and Aldi are likely to increasingly focus on positioning their banners as similar to regular supermarkets; albeit offering more attractive prices. Indeed, discounters are starting to increasingly resemble supermarkets in terms of their product offering and opening times.

COMPETITIVE LANDSCAPE

Lidl continues to lead, despite having fewer outlets

Lidl Nederland and Aldi Nederland are the only players in discounters in the Netherlands. Lidl continued to lead in value terms in 2019, despite Aldi having more outlets.

Major store design overhaul starts to reverse Aldi’s fortunes

In 2017, Aldi Nord, the parent company of the Dutch subsidiary, announced plans for the large-scale remodelling and refurbishment of many of its stores, including those in the Netherlands. Many outlets have already been refurbished, with others still to be completed.

Discounters move with consumer trends

Aldi and Lidl are moving with the times in terms of their strategies to attract consumers. For instance, they made the decision to stop the sale of tobacco products through their stores.

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