Retail Insights

Take a look at Lidl’s launch in the USA

Last month, discounter Lidl has opened its first USA stores in Virginia, North Carolina and South Carolina:                       7 more stores will open until the end of July. Have a look at the first stores here:…

Can online grocery retailing be profitable?

There are many studies and consultant opinions detailing the demise of bricks and mortar retailing. The rise of e-commerce-only companies like Amazon, Alibaba, ASOS and Ocado are testament to the threat that the traditional retail business is faced with. But the growth of e-commerce grocery retailing,…

What is the state of Austrian food retail?

Paul Foley, founder and partner at FRC and Peter Harrer, senior consultant at FRC, were interviewed for the Austrian trade magazine „Handelszeitung“. They discussed grocery retailing in Austria with special focus on frozen food. Paul Foley highlighted that the Austrian grocery retail is highly developed, consolidated…

Why is Lidl going to enter the USA market?

The answer to this question lies in two separate circumstances. Firstly, the ideal discount markets are running out for Lidl in Europe, therefore USA is the next best option. Ideal discount markets are characterised by several conditions: 1. Consumers who have enough money to choose their…

Why is Aldi Süd so successful?

Many articles are written about successful retailers - sometimes by professional business gurus, sometimes by ex-managers. I am from the latter category, having spent 23 years with the company Aldi Süd. Since selling my retail knowledge in the form of a consultancy I am often asked (normally…

Paul Foley’s opinion on ICA GRUPPEN Q3 results

“ICA GRUPPEN Q3 results show slow net sales growth” – this is one of Planet Retail’s headlines from the 9th November. Some explanations are given in the article: low inflation, changes in basket size and frequency of visit, even low online sales penetration. Paul Foley, Managing Partner…

Sainsbury’s and Netto should have known better!

Paul Foley, Managing Partner at Foley Retail Consulting, commented on last week’s Grocer article about the financial cost of the failed joint venture between Sainsbury’s and Netto. To him, the failure came as no surprise! Read his opinion here: Sainsbury's and Netto should have known better…

Making money from online shopping

The Grocer (UK) has recently published a very good article on the difficulties of making profits from online grocery sales. Although based on the UK, it is a well written and accurate account of a dilemma in most of the developed markets. The time poor consumer…

What went wrong with Netto in the UK?

After two years, Sainsbury’s has ended its joint venture with Netto supermarkets in the UK. All 16 Netto stores will close at the end of the month. What was an attempt to compete with discounters Aldi and Lidl, failed due to several reasons. Paul Foley, Managing…

Why we love Emerging Markets!

One of the most exciting occurrences in the worldwide retail industry is the conversion of traditional formats to modern chains. Food formats of all types, consumer electronics shops, drugstores, etc. - all exist in one way or another in every market of the world. But in…

What to do if a new competitor is going to enter your market?

The truth is that even aggressive retail entry strategies in themselves don’t normally disturb established medium sized or large markets dramatically in the first 5 years. Whatever the circumstances, it takes time to build enough stores, or to acquire enough regular e-commerce to make a significant…

Travel retail experiencing significant growth

If you ask anyone where the growth in global retail is, they will inevitably mention e-commerce first. But, there is another huge growth area - travel retail. More than 1 billion people travel each year and the retail opportunity has been recognised as very lucrative, firstly…

Rebuilding a store from the ground up

The challenge Following catastrophic storm damage in July 2013, Clerys iconic Dublin Department Store was closed for trading, with ceilings, shop fittings, flooring, lighting and offices destroyed across three floors. Our Senior Consultant Sue Dunn was asked to work with more than 46 Concession and Cosmetics…

Creating a successful retail loyalty program

The challenge A new and exciting food hypermarket business is looking to convert the traditional trade into their very modern format in an emerging market. They asked us to create a loyalty system, which rewarded their best customers and gave them valuable intelligence in which to…

Bringing the discount food store to emerging markets

The challenge The phenomenal success of BIM in Turkey (one of FRC’s favourite clients) has led to a number of enquiries in other emerging markets to copy BIM’s business model. Many commentators suggest the BIM success is based on the German discounters of Aldi or Lidl.…

5 Secrets For Effective Visual Merchandizing

The visual presentation in the store has always been the major customer motivation accounting for the a majority of retail purchase. Your window display has the potential to attract the customer, reel them in and ultimately lead to purchase. However, there are a few key points…

Expansion strategy – specialist supermarket UK

The challenge A successful specialist supermarket in the UK with 800+ stores began to worry about where the growth to match the previous 10 solid years was going to come from. Although there were still plenty of gaps on the UK map, the opportunities would reduce…

Can the success model of discount be put online?

In recent years the acceleration of e-commerce has brought especially Western hypermarkets under pressure by making their non-food products less attractive to consumers. Online retail is today the cheaper and more convenient alternative for buying electronics or bulky household products. This is painful for the hypermarket…

Poland – why is it a good ground for discount?

Surveys show that Polish consumers are more price conscious than the European average and this consumer concern has become even more pronounced lately. As a big part of the country’s population lives in smaller cities, a big portion of the retail market still belongs to traditional…

Why is Schlecker in so much trouble?

A retail brand can be compared to a plant, it has to be nurtured! At any time if you just leave it to produce fruit (or profit) without the proper care (or investment) it will slowly, and then suddenly, die! That is what is happening to…

Click and collect – a great idea!

The food retail sector has always struggled with two conflicting factors. Firstly, many consumers like the idea of ordering groceries on the internet and having them delivered. Secondly, the process of retailer taking on the cost of the journey to deliver them to the consumer’s front…

Private label development – food retailer Central Asia

The challenge A leading food retailer in Central Asia wanted to improve profitability. A structured study of the market was conducted and the client’s performance benchmarked against world class comparators, with results highlighting the under-management of the gross margin. The strategy After detailed analysis of possible…