In the May/June 2024 edition of ESM, we spoke to several prominent operators across Europe about how they are enhancing their private-label offerings, including Dr Alexander Lauer, Vice-Chief Procurement Officer, International, ALDI Nord.
What recent trends in private label have you observed in your business, and also the wider market?
The last two years, in particular, have shown us at ALDI Nord Group how important proven long-term supplier relationships are for ensuring sufficient resilience in turbulent times. With this in mind, we are selecting suppliers for our successful private labels even more closely, on the basis of their reliability and determination to be successful with us in the long term.
With this reliability and the associated availability of goods, we offer our customers a constant in times of change: high-quality products at the best-possible prices – a constant they can rely on.
In what categories has private label performed particularly well for you over the past year, and why?
Over the past two years, shoppers in all categories have increasingly turned to private label. While all categories benefitted, the snacking category outperformed in 2023. Key drivers were numerous product innovations and our highly successful Trader Joe’s private label.
As the inventor of discount, this is a development that makes us proud because our private labels are not only our differentiator in the market, they are also the core of ALDI’s brand identity. With a range that is around 80% private label, we are pleased to provably meet the needs of our customers.
What opportunities do you see for retailers to maximise the growth of private label in the years to come?
We expect customers to increasingly look for variety, added value, and innovation. As our successful ALDI business model is based on a focused assortment, we are responding to this trend in two ways – firstly, with even more stringent, data-driven assortment management. Underperformers are consistently eliminated, and new, innovative items are given a chance.
On the other hand, we are offering our customers more choice and added value through a stronger promotional business.
