Discounters have to develope its offer

Discounters such as Aldi and Lidl are predicted to take one Euro in every two in Germany by 2012, according to a new report from Verdict Research.The study, Retailing in Germany 2008,
shows the main discount players – Aldi, Lidl, Netto, Norma, Penny
and Plus – already hold a combined 42% share of Germany's €13bn
grocery market. Aldi and Lidl are trading from an inherently strong
position in Germany, says the report. Aldi is currently twice the
size of Lidl but the latter is closing the gap, especially since its
started to introduce branded products into its stores.

Verdict has identified three
opportunities for retailers in Germany:

• A move away from low pricing to a
'price plus' position. Aldi, for example, has recently been passing
on price increases, forced by rising food prices and cost inflation

• Pharmacy liberalisation with
grocers creating dedicated health zones comprising pharmacies and
health and wellbeing centres in-store

• Growth in organic groceries