Discounters in the Netherlands

2020 IMPACT

Discounters benefits from stay-at-home trend and economic constraints in 2020

Discounters benefited from restaurant and café closures in 2020 as consumers cooked and generally spent more time at home. In addition, although the economy in the Netherlands was impacted by the COVID-19 pandemic less than many other countries, nevertheless, more local consumers faced economic uncertainty and restricted budgets in 2020 than usual.

Lidl continues to lead, despite having fewer outlets

Lidl Nederland and Aldi Nederland are the only players in discounters in the Netherlands. Despite Aldi having more outlets, Lidl continued to lead in value terms in 2020, thanks to its repositioning as a soft discounter.

Discounters align with consumer trends to boost sales

Aldi and Lidl both move with the times in terms of strategies to attract consumers. For instance, with tobacco legislation becoming increasingly unfavourable and the negative image of smoking amongst the general public, these players have eliminated tobacco products from their ranges in a bid to create a more wholesome image.

RECOVERY AND OPPORTUNITIES

Discounters will play catch-up with supermarkets over the forecast period

Discounters increasingly resemble supermarkets in terms of their product ranges and opening times. With the growth prospects of hard discounting limited, both Lidl and Aldi are likely to increasingly focus on positioning their banners as similar to regular supermarkets over the forecast period, and they will invest in marketing campaigns on TV and online that demonstrate their ability to combine low prices with high-quality products.

Major store design overhaul may boost Aldi’s profile while Lidl will invest heavily in marketing

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.

Greater focus on brands, fresh food and baked goods offers scope for growth

Having traditionally relied exclusively on private label lines, both Aldi and Lidl have expanded their ranges of brands in recent years. Currently accounting for approximately 5% of the entire assortment in discounters, the share of private label brands is expected to increase over the next few years.