Aldi Nord centralises sourcing to raise profitability
In order to make even more use of economies of scale, Aldi Nord plans to purchase even more private label products and promotional products on a European scale, to improve its profitability.
Aldi Nord has been on a course towards centralising its purchasing organisation for some time now: the discounter has now standardised two-thirds of its fixed range of private labels. For example, all crisps and salty snacks at the discounter are now sold under the European brand Sun Snacks and the local private label Pirato has been discontinued.
From 2026, the company will also centrally purchase almost all private label products for international promotional activities, including the weekly non-food promotions. Aldi currently purchases around a quarter of its promotional items centrally in Essen, but that share should increase to 90 % by the end of next year. This should earn the discounter better purchasing prices, Retail Detail reports based on an article of Lebensmittel Zeitung. The national branches can then draw on a catalogue of international private labels.
Standardisation is crucial for Aldi to improve profitability: the retailer is inspired by the policy of rival Lidl, which makes better use of European synergies.
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