*exclusive* New format Aldi
30 March 2017
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Quite the exclusive for the Grocery Insight blog and wider email subscribers; with the first look at the new Aldi store format for the UK. The discounter plans to open more of these refits this year as they seek to step their offer on, beyond the 'discount' model and in to the realms of modern supermarket.
Of course, Aldi have grown hugely since the recession and continue to put down space at a rapid rate. This helps their Kantar sales figures thus more customers are able to visit an Aldi nearby, but refit / format work is relatively uncommon for Aldi.
Aldi do extend stores based on their sales and space where applicable; but to actually remodel a store (this is a new build) for a new 'world' isn't what Aldi do in the UK.
Lidl have done though, with their new Rushden store opening late 2014 showing their new format 'Lidl of the future' with charcoal perimeter walls, better lighting, more chilled space, better bakery and a feeling of premium discount almost. Skegness followed (demolition and rebuild) but further stores have had the refit applied without extensive building work.
Therefore Aldi have to act; not only are the major retailers sharpening up but Lidl have a better format, more in line with both the UK but also the expectations of customers and boundaries of discount food retail in the UK.
This store is certainly sharper from Aldi; with a real focus on marketing, the tone of voice (to customers) around the store and the permanent signage is strong too.
There is a nod towards the fresh range expanding with an aisle for fresh foods, ready meals and meat alongside a sharper Wines fixture. Big focus on Baby and Health/Beauty as expected, the Mamia display for Nappies and baby was notable also
Specials tables are shallower and of a better build quality, forgive the Lidl esque signage though.
The layout is tweaked slightly with food to go located at the front of the store alongside the floral offer. The flow of the store then remains as standardised as it was; with the tweak of Produce being first in flow continuing.
They then roll in to an aisle of chilled foods which is new, the entire chilled range is merchandised together with Milk at the top of the aisle, then flowing in to Wines on the back wall.
The last aisle then starts with Frozen foods which consists of base freezers and wall based freezers also.
Specials remain in their core location across the centre of the store, there is the addition of more permanent aisle space for the growing specials range.
There are slight tweaks around the ambient flow, Baby is further up the store (located where Frozen would be typically) with Cereals and other Grocery items near the checkouts where Wines would typically live.
Darker signage and black chillers / freezers give the store a premium look and feel, certainly in keeping with the Lidl equivalent store.
Similarly the flooring is grey, rather than their usual yellow / orange tiles that can look a bit down market and garish.
Divider signage is sharp, with clear division across Fresh, Frozen and Ambient - imagery is well used to aid customer navigation around the store.
Wines are better, good split between Beers, Wines and Spirits and the focus area for the speciality bottles of Wines is smart and brings Aldi in to line with the Lidl wine offer which is excellent, both in terms of range and merchandising.
The use of faux tiles above the right hand aisle is noteworthy as the Bakery offer is located at the end of the store near the checkouts. Intriguingly, despite trials and the Lidl success, there is no in store Bakery offer in this new format store.
Home Baking also features more space as their range has grown significantly as the customers have demanded more lines in the range - the popularity of Great British Bake Off has helped!
However to carry lots of range is difficult, there are too many products to be truly compelling here, so Aldi trying is noteworthy. Can you balance up compelling ranges but remain true to the core principles of discount retailing?
There are areas where Aldi are just unable to provide assortment due to their limited range model, Free From is one of those areas, although this store does feature a range of Free From and healthier lines merchandised together near the core ambient range.
It's a decent enough assortment; Flour, Cake mixes alongside Breads and Biscuits too. Some are traded under own label and some premium labels too alongside branded lines where applicable. Notable expansion.
It wouldn't be Aldi without a provenance claim or two around the store..... British Eggs, British Meat and claims around first retailer to sign the NFU pledge and British Milk too...
An interesting nod here towards their convenience angle; increasingly customers tell me that they consider a discounter in the same league as a Tesco Express if they're nearby when they're wanting 'a few bits'.
Their size, simplicity and speed of checkout means to some customers they are considered equally with a convenience store for that 'top up' mission, location dependent of course.
Food for tonight on the end is a nod towards this mission and this is a good piece of work from Aldi. It allows them to feature premium ranges, Wines and potentially bring a meal deal to the fore at some stage too.
The language and tone of voice across the store with the new signage works ever so well, it's very (dare we say) Lidl and communicates well to customers around the store too.
Despite the upmarket feel to the store, introduction of free from and general premium elements. The messages around value are never far away either.
So there's more to come on this store in terms of a follow up email and further thoughts on the deeper detail, IE not just the bright lights and 'new' bits. Range count for example must be going northwards given the addition of Free From.....
But it's a great format shift for Aldi though; the flow and layout changes are well thought out in this store and additions like the 'food for tonight' chilled end are effective too.
Improvements in Wines and Baby are noteworthy and show the continuing ambition from Aldi to enhance these 'hero' categories as they drive footfall in to the chain.
Efficiency wise, it definitely feels tighter and more like a normal supermarket than a discount operation. What that does to the efficiency model is likely to be interesting, but as an attempt to 'step on' their offer, this store certainly succeeds at that.
From the Grocery Insight newsletter archive, first sent to subscribers on 30 March 2017. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.