Lidl’s vertical integration strategy started almost by accident a number of years ago, when one of its drinks suppliers slid into financial difficulties. Had the discounter not stepped in, huge gaps would have appeared on its shelves for a considerable amount of time. Once Schwarz had taken over, management quickly discovered the huge advantages and opportunities of being vertically integrated.
Since then, the discounter has followed through and has widened the strategy into owning and running more production sites, packaging, logistics, and recycling. And, not unlike Amazon, it has started to offer its service to 3rd parties. In a similar vain, Lidl’s digital transformation started with the introduction of FMCG A brands. This required a single view of stock at the back end, and has evolved into a proposition offering a best in class personalised loyalty solution (the first for a discounter) featuring a proprietary digital payment option.
As the company has grown into the EU’s biggest retailer, the complexities on the backend and its data security requirements (not least of its loyalty solution) have become so difficult to manage, that the retailer has launched its own cloud solution. Again Schwarz is mirroring Amazon here by turning a cost into a profit centre by renting out cloud space to other companies. The company is now also a lead investor in Germany’s leading (gen) AI start up.
Study Coverage
Will Schwarz be successful in turning the EU‘s leading retailer into a digital infrastructure provider? And if the digital transformation is ultimately securing its long term success, what does this mean for other retailers - not least Aldi? Discover unparalleled insights and strategic recommendations in this latest analysis on the Schwarz Group. This report is designed to empower retailers, FMCG companies and blue-chip consultancies with proprietary data and actionable strategies to drive growth and innovation in the competitive retail landscape. Equip your organization with the insights needed to stay ahead. The comprehensive analysis of the Schwarz Group offers a roadmap for success, driven by data and strategic expertise.
Key Questions Answered:
- What are the key performance metrics for Schwarz Group's brands from 2018 to 2024? How did Lidl and Kaufland perform in individual national markets, including sales densities and store expansions?
- What are the strategic moves and innovations introduced by Schwarz Group in recent years and the strategic drivers behind its Vertical Integration strategy? What are the investments in production capacity supposed to achieve the acquisition targets?
- Taking a 360 degree overview of its integrated logistics and supply chain strategies, and closing the loop on its value creation chain, is there potential for Schwarz to supply other retailers and create joint ventures in private labels? Is the company pivoting to become a service provider to other retailers from private label production, logistics to waste disposal and recycling? What challenges and opportunities does Schwarz Group face in the non-food sector and US market and how will it tackle the threats from non-food discounters (Action),how can Lidl safeguard its profit margins?
- How is Schwarz Group leveraging technology and AI to enhance its operations and customer engagement? Is the company pivoting from a discounter to a cloud provider and AI company? Could such a move be successful? How is the focus on Schwarz Digits, cloud strategies, AI and new technologies, shaping online investments, and driving a company reorganization?
- Why does the strategic focus to secure dominance in EU retailing require Omni Channel, IT & AI Strategy, Digital Transformation - what does this mean for Aldi and other discounters?
- How is the success of its loyalty programs and instore digital signage a clear precursor for its Retail Media business and what will the collaboration with3P ad players and new ERP tech projects enable the retailer to do in future?
Features:
- Analytical deep dive into the business models of the Schwarz Group (from Prezero to Aleph Alpha)
- Proprietary Data on Lidl, Kaufland sizes 2018-2023,sales, stores, space, sales per store, sales densities, In-depth analysis of sales performance across various markets. Data on profits and debt
- Strategic recommendations to enhance operational efficiency and for leveraging the digital transformation
- Strategic issues analysed such as: store concept, IT architecture and process optimisation, supply chain, private label architecture, loyalty solution, retail media
- Outlook, how Lidl will fare in the current macroeconomic climate
Benefits:
- Benchmark key metrics and follow the strategies of the stand out performer in EU grocery and in corporate learnings into your own proposition
- Understand how to choose the right approach to deal with the discounters for your business, catchment and customers
- Grasp how much to invest in defence against the discounters' price leadership or how to deal with Lidl as a private label supplier
- Featuring real life, practical case studies, sharing key learnings and pointing out pitfalls to avoid.
- Learn from best practice examples, identify high performing and underperforming markets.
Table of Contents
Executive Summary
Companies Mentioned
- Aldi
- Aleph Alpha
- Amazon
- Kaufland
- Lidl
- Prezero
- Schwarz Group
Methodology
Thought provoking analysis combined with actionable recommendations based on best practice, real-life case examples provide clients with key deliverables that are heavily focused on solutions offering strategic insight, innovation and impact assessments of major trends from within the sector and beyond.
Based on the publisher's deep understanding of the EU’s retail markets, long established professional expertise and experience in the sector the solutions are always pragmatic, comprehensive, creative, reliable and implementable.
The publisher's core offer comprises a dedicated report service, on site client presentations as well as ethnographic consumer research delivered in video format and a dedicated store pictures library for benchmarking purposes.
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