2023-10-10 04:00:00
Aldi and Decathlon have decided to remove brands from their vast catalog, announces Gondola magazine (a retail consultancy firm). Here are the changes on the shelves of these two stores.
Aldi says he wants “more simplicity and efficiency”. The supermarket chain will notably remove Pirato, its famous brand of chips, but also several other names from the shelves.
“Among others, four Italian product names will make way for the new brand “Cucina Nobile””, explains spokesperson Jason Sevestre.
While more than 100 names will be removed, the goal is to keep 55 names. “You will no longer find Pirato on our shelves from the beginning of next year, but to reduce the total number of PLs to 55, it will take us a few years. The idea is to bring more simplicity to customers. In this way we increase identification. Today there is a certain proliferation of names and brands. Of course, it is also regarding reducing costs. We want to send a signal to our customers that we are looking for ways to increase efficiency. However, we would like to emphasize that although the number of names will decrease significantly, the offer will remain the same. The Private Labels offer is our core business.”
The Pirato brand only existed in Belgium and Luxembourg. These chips will now be called Sun Snacks, as will all savory snacks offered under this private label.
Same idea at Decathlon
On the side of decathlonthe French sporting goods giant plans to eliminate a large part of its brands, but also a reduction in its sales areas.
Decathlon is thus reversing its strategy which was to increase its own brands in recent years. We should see a shift from 50 brands currently to around a dozen by the end of 2023.
No more Artengo (racket sports), Wedze (skiing), Fouganza (horse riding) or Nyamba (pilates), only the strongest brands will be retained and expanded. Kipsta will become the only brand for team sports, Tribord for water sports, Inesis for precision sports, etc.
“In addition, the Decathlon brand will also be retained and will gain in importance. This decision is part of a new strategic plan which is to be spread over the next five years and which also provides for a reduction in sales areas, a acceleration of the digital aspect or even an intensification of the sustainable development policy”, indicates the economic daily Les Echos.
Store franchising is being considered except in Belgium where the results are positive. It is not the financial health of the brand which encourages it to act in this way (its turnover of 15.4 billion euros in 2022 (+ 12%) constitutes a record), but rather “the desire to keep the competition at (a good) distance”.
In France, the number of 600 job cuts is mentioned. In Belgium, no figures are currently mentioned.
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