United Kingdom and Gibraltar European Union membership referendum
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Uncertainty among customers is bad for business, this is true for most sectors of the economy. Discounters are an exception: If citizens keep their money together, there are opportunities for this segment of food retailing.
This can be observed by the example of Great Britain. There, the Brexit turbulence is causing problems for many retailers because the economic situation is worse and many customers have become cautious. 4 out of 5 Britons worry that food and beverage prices will continue to rise after Brexit. According to the Kantar research institute, "there is little doubt among retailers, manufacturers and farmers that Brexit will lead to a significant disruption of British food supplies".
No good prospects actually - but that's exactly what plays two German companies in the hands: the discounters Aldi and Lidl.
In contrast to the competition, their business is growing strongly. According to a Kantar study, German companies were able to significantly increase their market share to a total of 14 percent. "The plus is worth almost one billion pounds (1.16 billion euros) annually," said the institute. Aldi UK attracted 689,000 new customers between July and October, more than any other chain, and ranks second in the list of the most popular supermarkets. Lidl UK recently announced a £ 15 billion investment offensive over the next five years. Both chains want to open dozens of new branches in the country and create thousands of jobs.
The British competition does not come to rest
Aldi UK boss Giles Hurley does not blame low prices and high infrastructure costs on profit. The company does not look at short-term profits, he said recently. "Our focus is on growth, on sales, stores and customer numbers."
Following the failure to comply with Prime Minister Boris Johnson's resignation deadline on 31 October, Britain is expected to leave the EU by 31 January 2020 at the latest. The exact circumstances are still unclear, many customers therefore household. This depresses the British retailers on the mood.
Asda example: The third largest UK retailer has tariff hassles with workers, sales and market share have recently declined, and the antitrust regulator banned the merger with competitor Sainsbury's. The other industry sizes plague similar problems, even market leader Tesco can not rest. Just recently, boss Dave Lewis surprisingly announced his retirement. Not only food problems are huge - when the retail giant Marks & Spencer presents its half-year figures, analysts expect a "bloodbath", especially in the clothing and housewares segments.
Advantage Aldi and Lidl: The discounters are considered well prepared for a possible chaos after the EU exit. In addition, as Aldi CEO Hurley emphasized, the company offers a smaller product range than the competition. Three quarters of the supply came from UK manufacturers and suppliers. This is a clear difference to the overall market - according to Kantar, 62 percent of all food imports, the majority from the EU. An Aldi UK spokesman announced that the company would continue to offer the lowest possible prices - "whatever the future holds".