The Aldi and Lidl supermarket chains dominate the German discount market. Will another company be dangerous now?
Monaco – The discounters business in Germany is booming: companies like Aldi, Lidl, Penny and Netto represent about 43% of sales in the German food sector. The branches of Lidl and Aldi are particularly popular here: about 80% of consumers buy in one of the two supermarkets.
The companies are now so good that both start a number of important projects: the Schwarz Group, the parent company Lidl, now actively involved in German waste management and Aldi also offers its customers a parking space directly to the car park. Even recurring supermarket calls can not shake this supremacy.
But now it seems a new competitor to arouse the German economic market: the Russian discount chain Torgservis. His daughter TS Markt GmbH is now looking for new locations in Germany.
Possible competitor Aldi / Lidl is looking for locations in East Germany
The Russian supermarket is currently looking for over 100 locations in Germany, according to the "Lebensmittelzeitung". Particularly interesting are the new branches in East Germany, currently looking for TS Markt GmbH in Mecklenburg-Western Pomerania, Saxony, Saxony-Anhalt, Thuringia and Brandenburg for operational areas. The reason for the focus on the territories of East Germany is the target group: immigrants and citizens of Eastern Europe in particular should be convinced of the product range, they say.
Where does the money come from for such an expansion? The Torgservis discount store has an incredible success, according to epochtimes.de in Russia. The company, founded in 2009, has been able to quintuple the number of branches in the last four years, with external sales tripled to 1.3 billion euros in the same period. "In addition, the chain pursues a franchise model, that each branch is a separate legal entity," the paper continues. In 2017 it would have been possible for discounters to expand from Russian rural regions. First in Moscow, then in Kazakhstan, now in China and Belarus. And now only the German market must follow.
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Possible competitor Aldi / Lidl Torgservis wants to score in Germany with a simple offer
The Russian company is looking for the Lebensmittelzeitung In Germany, plant areas varying in size from 800 to 1200 square meters, parking should be available for 30-40 cars. To make a comparison: the two large German discount weights Aldi and Lidl have now expanded their stores into an area of about 1500 square meters, as Epoch Times He writes.
Later set up the Russian discount store on strategies reminiscent of the beginnings of Lidl and Aldi. While German discounters now pay more attention to a wider range, Torgservis remains simple. Only 1500 to a maximum of 2000 own brands should be offered on wooden pallets at the supermarket.
The video shows the food chain in Russia
It is not yet clear whether the Russian discount chain will succeed with its expansion in Germany. Experts prophesy but a difficult start: the supermarket must meet high standards in German food law and quality requirements of customers compared to Russia, but can still offer lower prices. Until the company has adapted to these conditions, Lidl and Aldi remain pioneers in the German economic market for the time being.
By the way: Aldi threatens a dispute over a popular product. The discounter wants to lower prices, but gets the opposite wind.
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