Lidl Stiftung & Co. KG are an international supermarket business with more than 10,000 stores across 28 countries throughout Europe. Although a relative newcomer to the UK market, they already have more than 4% market share – and over 8% in the Republic of Ireland.
Lidl N.I. stocked a limited range of magazines, as they were uncomfortable working with the traditional supply and payment models that are standard practice throughout much of the magazine industry. Because many publishers couldn’t accommodate different models, Lidl N.I. only had access to a small proportion of the magazine market – and couldn’t put the most profitable titles on their shelves.
Across Northern Ireland, the biggest magazine brands represent around 70% of the market; a range without these titles is unlikely to be very profitable. In short, Lidl N.I.’s range was not optimal – wasting shelf space and staff resource.
We worked to bridge the gap between the publishers preferred methods and Lidl’s business practices – finding a compromise model that suited both parties and gave the business full access to the market’s best titles.
As part of this model, merchandisers visit stores regularly to count stock, record returns and provide key data for publishers to analyse sales and manage their supply expectations.
The process in place suits both parties, allowing them to build a strong and successful supply chain. The revamped category is performing well for Lidl N.I., with the range of quality titles increasing both sales and profits.