Aldi Nord and Aldi Süd to merge private label ranges | Progresiv

Aldi Nord and Aldi Süd will each take over some of the others proprietary brands. Around 100 of the retailers own brands will be merged by the end of 2020. The main changes will be to the brand names of products and to the packaging designs. The move is expected to help Aldi reiterate its strong price position and improve its competitiveness in the German market. Products will also be reviewed as the process is undertaken, with new varieties, recipes and designs implemented wherever the potential for improvement is identified.

By working together, the retailers will achieve cost advantages through joint packaging and marketing, as well as more efficient processes. Merging the private label ranges will allow the retailers to offer customers the best price. By the end of 2020, Aldi Nord and Aldi Süd plan to have made the majority of their private label products identical within both the standard ranges and promotions. This means more consistency for shoppers, wherever in the country they are shopping. However, both Aldi Nord and Aldi Süd will retain some individuality to enable them to respond to their customers and in particular, they will both still stock regional products.

This move will also provide opportunities for suppliers. Uniform requirements and processes will be implemented and packaging will be reduced and optimised wherever possible. (retailanalysis.igd.com)