Thursday 19 August 2021

Russian Discounter Opens First UK Store With Prices Cheaper Than Aldi

The interior of the store in Preston is minimalist with painted breeze-block walls and no branding (see video). Journalists visiting the site described it as a “drab” retail space that makes a branch of Aldi look almost glamorous.

To keep costs down, goods are sold from pallets with limited in-store services and only a handful of staff. The product range is focused on longer life ambient and frozen items, alongside household items. Everyday staples like milk, eggs and bread aren’t available, and there is no fresh fruit or veg.
There is an area with a selection of limited deals on non-food products, similar to the middle aisle in Aldi and Lidl stores.

Suppliers must deliver direct to stores and are expected to offer stock on a sale or return basis. MERE’s Chief Procurement OfficerPavels Antonovs, said: “We are a hard discounter. When we see that a manufacturer or a distributor has an offer that fits our business criteria, we will have it in store.”

NamNews Implications:
  • A gauntlet thrown down!
  • There has to be an Aldi/Lidl reaction…
  • The real issue is how the nearby mults will react.
  • Getting listings should be straightforward for suppliers.
  • (although direct store delivery, SOR may cause some to pause…)
  • But a MERE startup in the UK cannot be ignored… 

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