Aldi and Lidl look set to continue their UK domination with expansion plans looking to build more branches up and down the country. In Nottinghamshire in particular there has been a flurry of planning permission applications by the German supermarket giants as they continue to disrupt the previous supermarket dominance. With Aldi in particular having plans for over 1000 stores across the UK, what can you do to grow your shop in a similar vein?
Be The First, The Best or The Cheapest
With so much disruption in the retail industry, from internet to forward-thinking chains, the retail scope has changed massively. In the supermarket world, as the market has changed so too has the expectations of customers.
The likes of Tesco and Asda grew due to the nature that you could effectively go to one store and get everything you need. This is something that Aldi and Lidl don’t pride themselves on, but the prices on offer are enough to convince users to shop there, spawning a generation that will do their “big shop” at one of the stores before going to a supermarket for a “little shop” for the more niche branded products.
With that in mind, you should look to offer a service or product that you’re either the cheapest or the best at. Obviously if your product is completely unique, you can be both! Just ensure you keep an eye on potential competition so you can adapt your offering as needs be.
Look After Your Staff
We’ve all been there in Aldi and Lidl where the staff on the tills scan items at a ludicrously fast pace, ensuring your checkout process with them is as fast as possible. You might find this stressful as you frantically try to pack the bags but it’s what is asked of members of staff in the store. They have strong targets in terms of checkout speed to ensure that they can serve as many customers as possible throughout the day.
With the targets being harder on staff than other supermarkets, it’s no surprise that Aldi and Lidl are some of the highest-paying retail jobs available for those taking their first steps into the working economy. They may ask for plenty from their staff members but they reward them sufficiently so staff are happy to allow the company to achieve their objectives.
Now, we’re not saying that you should ask your staff to pack at lightning speeds, but target them with realistic goals that are going to grow your business and increase customer satisfaction. If they achieve them, make sure you recognise their work and offer a fair wage. For a good business to grow they need a great team.
Disrupt The Market
When you look back at a pre Aldi and Lidl UK, the idea of the German supermarkets proposition seems incredibly strange. People wouldn’t have believed that a store that’s smaller than supermarkets, offering little-to-no branded products and with staff aimed at getting you out the door as quick as possible would thrive in the UK’s crowded supermarket space.
Though Aldi and Lidl had done their research and seen what their model could do in other countries, understanding there was a gap in the market even if the larger supermarkets hadn’t seen it. Now, they are predicted to eclipse the like of Asda and Sainsbury’s by 2021.
In fact, their presence has forced a change in strategy from Tesco, who have now launched a range of “discount stores” called Jack’s to target the market share that Aldi and Lidl are taking from them. Tesco’s plans to grow are mainly centred around the Jack’s model, a large change from their previous strategy.
For small businesses, this means finding a niche or an area of service you don’t believe is being catered for. Do your research, speak to consumers and find what their “pain points” are in your sector. When you’ve discovered where you can fill the gap, be brave and take the risk. Your small business could turn into a gamechanger in your industry, growing rapidly in the process.
Target Your Advertising
Aldi and Lidl both understand their audiences clearly, targeting advertising that highlights their benefits in a way that customers will understand and through a channel that customers will be using. Then their customer service and offering reflects what their adverts target, ensuring consistency from first exposure to end-purchase. From Aldi targeting families with their yearly Kevin The Carrot adventures to Lidl scaling back their digital offering as it wasn’t meeting their customer’s needs.
This is all about knowing your customer base. What do they do in their spare time? What offers do they need to purchase from you? Where would an advert need to be placed to reach as many people as possible? What type of advertising will appeal to them? These are the questions you need to answer to maximise your potential advertising success.
Answer them correctly and your store could grow rapidly, so it’s worth taking the time to think these over.
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We hope the above has provided you with some good advice and that your business can truly flourish in 2019. Want an insurance policy for your business that allows you to grow and remain protected? Look no further than Coversure Nottingham.