Discount supermarket chain Lidl is working on streamlining its product ranges in Germany. Fewer articles but higher profitability is the objective for all departments, from buying to logistics and distribution. Chief executive Karl-Heinz Holland and buying director Robin Goudsblom hope that the change will reduce handling costs at stores and distribution centres.
The new strategy could spell the end for several secondary and tertiary brands in favour of private labels. Like other retailers, Lidl is asking for exclusive products to be exempt from price comparison to give it greater freedom in setting prices, an area that Aldi dominates in terms of basic ranges.