Last year, Aldi managed to outperform Tesco and Carrefour to take second place in the ranking of the largest European food retailers, after rival Schwarz Group (Lidl and Kaufland). Further consolidation in the sector seems inevitable.
Another important trend is the increasing importance of sustainability, even in the low price segment. Schwarz Group is a lot further ahead in that area than you would expect from a discounter. The group is taking steps towards vertical integration, recycling its own plastic waste and recently launched a collection of sportswear partly made from recycled PET bottles under its own brand. Sustainability is not just an element of differentiation, but is becoming a competitive financial advantage, the report concludes.
