Transforming the EU’s Biggest Retailer

Transforming the EU’s Biggest Retailer

Lidl’s vertical integration strategy started almost by accident a number of years ago, when one of its drinks suppliers slidinto financial difficulties. Had the discounter not stepped in, huge gaps would have appeared on its shelves for a considerableamount of time. Once Schwarz had taken over, management quickly discovered the huge advantages and opportunities ofbeing vertically integrated. Since then, the discounter has followed through and has widened the strategy into owningand running more production sites, packaging, logistics, and recycling. And, not unlike Amazon, it has started to offerits service to 3rd parties.

In a similar vain, Lidl’s digital transformation started with the introduction of FMCG A brands. This required a singleview 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 othercompanies. The company is now also a lead investor in Germany’s leading (gen) AI start up.

Will Schwarz be successful in turning the EU‘s leading retailer into a digital infrastructure provider? And if the digitaltransformation is ultimately securing its long term success, what does this mean for other retailers - not least Aldi?Discover unparalleled insights and strategic recommendations in our latest analysis on the Schwarz Group. This report isdesigned to empower retailers, FMCG companies and blue-chip consultancies with proprietary data and actionable strategiesto drive growth and innovation in the competitive retail landscape. Equip your organization with the insights needed to stayahead. Our comprehensive analysis of the Schwarz Group offers a roadmap for success, driven by data and strategicexpertise.

Key Questions answered

What are the key performance metrics for SchwarzGroup's brands from 2018 to 2024? How did Lidl andKaufland perform in individual national markets,including sales densities and store expansions?What are the strategic moves and innovationsintroduced by Schwarz Group in recent years? What arethe strategic drivers behind its Vertical Integrationstrategy? What are the investments in productioncapacity supposed to achieve? What are the acquisitiontargets? Which scale effects can the retailer leverage?How will this affect private label harmonisation, pricing,OSA? What will happen to the fresh ranges and theirsupply chain set up?

Taking a 360 degree overview of its integratedlogistics and supply chain strategies, and closing theloop on its value creation chain, is there potential forSchwarz to supply other retailers and create jointventures in private labels? Is the company pivotingto become a service provider to other retailers fromprivate label production, logistics to waste disposaland recycling?

What challenges and opportunities does Schwarz Groupface in the non-food sector and US market? How will ittackle the threats from non-food discounters (Action),how can Lidl safeguard its profit margins?How is Schwarz Group leveraging technology and AIto enhance its operations and customerengagement? Is the company pivoting from adiscounter to a cloud provider and AI company?Could such a move be successful? How is the focuson Schwarz Digits, cloud strategies, AI and newtechnologies, shaping online investments, anddriving a company reorganization?

Why does the strategic focus to secure dominance inEU retailing require Omni Channel, IT & AI Strategy,Digital Transformation - what does this mean for Aldiand other discounters?

How is the success of its loyalty programs and instoredigital signage a clear precursor for its RetailMedia business and what will the collaboration with3P ad players and new ERP tech projects enable theretailer to do in future?

Features

Analytical deep dive into the business models of theSchwarz Group (from Prezero to Aleph Alpha)Proprietary Data on Lidl, Kaufland sizes 2018-2023,sales, stores, space, sales per store, salesdensities, In-depth analysis of sales performanceacross various markets. Data on profits and debtStrategic recommendations to enhance operationalefficiency and for leveraging the digital transformationStrategic issues analysed such as: store concept, ITarchitecture and process optimisation, supply chain,private label architecture, loyalty solution, retail mediaOutlook, how Lidl will fare in the current macroeconomic climate

Benefits

Benchmark key metrics and follow the strategies of thestand out performer in EU grocery and incorporatelearnings into your own propositionUnderstand how to choose the right approach todeal with the discounters for your business,catchment and customers

Grasp how much to invest in defence against thediscounters’ price leadership or how to deal with Lidlas a private label supplier

Featuring real life, practical case studies, sharingkey learnings and pointing out pitfalls to avoid.Learn from best practice examples, identify highperformingand underperforming markets.