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John Barlow

on 16 August 2016

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Transcript of LIDL STRATEGIC V4


(inc. future store)

Fresh juice now served in store with the produce fixture
UK Concept
(inc. future store)


Store Operations
Key Events

Key Events (Christmas)
Key Events (Christmas)
Key Events

Current RDC’s
Future RDC’s;
Cardiff 2016/17
Isle of Sheppey in 2019
Current RDC’s
Newton Aycliffe
Future RDC’s;
Wednesbury (West Birmingham) in 2017
Southampton in Sept 2016
Exeter in 2018
Bristol in 2017
This will replace Weston-super-Mare
Future RDC Networks
Lidl UK RDCs
- Based in the Midlands area

- Walsall RDC is used as a
Non-Food Specials re-work
and storage site.

- 100% agency staff
Single temperature NFS rework / Storage
Lidl UK RDCs
No Gatehouse, Hauliers have to manage themselves in the yard
Gravity Fed Racking
Freezer Pods
Lidl UK RDCs
Multi-temp RDC servicing Scotland including; Berwick-Upon-Tweed, Dumfries & Galloway, Highlands, Orkney Islands, Scottish Borders
Servicing approximately 90 stores across Scotland as well as home to the new Scottish Buying department
Lidl UK RDCs
Lidl Livingston RDC
Tailend Farm, Deans Industrial Estate,
Livingston EH54 8SE
Lidl UK RDCs
Lidl Wednesbury RDC

Currently under construction

Possible location for e-commerce FC
Lidl UK RDCs
Goods out section has approximately
40 bays.

Goods in section has approximately
35 bays.
Lidl Charleville
Secured white pallet store.
Lidl Ireland RDCs
4sr, 10 Dundrod Rd, Crumlin BT29 4SR
Neither ambient or chilled goods in/dispatch running near capacity.

Outdoor secure pallet store.
Lidl Belfast
Recruitment within Regional Distribution Centres for Aldi and Lidl.

Lidl currently do not offer an apprenticeship programme within their Regional Distribution Centres.
However Lidl do offer a graduate entry position for Assistant Section Manager.
Has a section for recycling bales of cardboard and plastic.
As well as a separate store for waste disposal.
In 2012 SSI Schaefer installed an automated picking warehouse system for Lidl in Kirchheim/ Teck, Germany.

As well as installing Schaefer Case Picking (SCP) System, the warehouse includes a high bay racking system with five aisles and around 15,000 pallet storage spaces plus a Schaefer Tray System (STS) with 16,000 storage position on five storage levels.

The system guarantees optimally packed pallets for transporting and unloading goods at the store.

See below link for a video of the exact system Lidl have trialled.

Lidl uses the Schaefer Case Picking System for order picking
Lidl have 3 European hubs run by 3rd parties to consolidate and distribute products

Valencia (specialist site for produce)
Rotterdam (Port centric – Rotterdam is Europe's largest container port)

Their RDC network is fully integrated across Europe to allow freight diversion (trunking) opportunities.
Use of Consolidation Centres
Lidl have announced plans to invest around €70 million to develop a new Regional Distribution Centre in Spain.
Currently under construction in Alcalá de Henares – Spain this will become the biggest distribution centre in Europe. The 71,800m2 facility will employ 275 workers and supply more than 150 stores in central Spain.

The distribution centre will have a storage area for 10,000 pallets, as well as 12,000 square metres set aside for cold-room storage.

“This will be the biggest distribution platform in the whole of Europe, the most technologically advanced and the most sustainable,” said Javier Suárez, Lidl’s director of expansion and real estate.

Lidl RDCs - European
Lidl’s non-food specials are partly imported from Asia using standard containers which are shipped to the pan European distribution hubs for consolidation. Using a centralised delivery control system the goods are then loaded onto inland navigation vessels, goods trains or lorries.
All listed lines are focused primarily on German and UK production whilst the transportation of the goods are also controlled by the pan European hubs.
Lidl currently communicate directly to suppliers when placing orders, however they have recently been dealing with Armstrong Logistics directly.
Transportation and Consolidation
Use of Platforms
Lidl mainly work directly with suppliers for inbound logistics.
Armstrong's, CML and Oakland's all deliver stock to Lidl contracted by suppliers.

All European Suppliers are controlled centrally through Germany. (similar to IB and Aldi UK Buying from IB).

Buying terms are DDP/ DAT into the 3 hubs, then transferred to regional distribution centres across Europe.
Lidl currently contract third party hauliers to trunk goods between the pan European distribution centres (Valencia, Rotterdam and Austria) to local RDCs and between RDC to RDC

This enables Lidl to import smaller amounts whilst maximising their vehicle capacity ensuring minimum amount of haulage on the roads. This also guarantees the best possible freshness of products whilst reaming efficient and environmentally friendly

The example given is of produce sent from Valencia via short sea through the port of Bilbao in North West Spain for distribution across the U.K

Produce to Ireland

Lidl buy on a Day 1 for day 3 basis.

Lidl currently use McBurney Transport Group based in Liverpool to complete their Produce to Ireland shipments using the Liverpool to Dublin crossing. As McBurney’s are located so close to the Liverpool port this is the cheapest and most efficient option for them. Suppliers deliver into McBurney for transportation to Lidl using the suppliers transport at the suppliers cost.

They currently receive orders from Lidl by 16:30pm on day 1 and deliver into Ireland from 06:00 on day 3. This leg is charged to the supplier at an average £50 per pallet. All produce is ordered in full pallets.

Aldi currently deliver Long Life Chill products to Naas and Mitchelstown regions at a cost of £45 per pallet from CML to Naas, £55 per pallet from Oakland's to Naas, £50 per pallet from CML to Mitchelstown and £55 from Oakland's to Mitchelstown.

McBurney’s are currently shipping 10 – 20 loads per day for Lidl. Currently running a cross stock operation only storing Ambient, Produce and Frozen goods.
ay 3 into Irish regions
Aldi currently buy all produce sold within the Irish business through a dedicated Irish Buying Team based in Naas.

The UK Produce buying team are currently exploring the opportunity to improve the quality of produce in Ireland through adopting the buying of Irish sold produce within the UK buying infrastructure. This includes a project with CLD to identify the best supply chain solution.
Lidl do not use crates for produce in Ireland. All fresh produce is expected to be delivered in card.  This enables the theatre in store of a market scene.
Lidl use a white pallet pool (re-usable euro pallets) which is managed on an exchange system.
Aldi currently deliver Long Life Chill products to Naas and Mitchelstown regions at a cost of £45 per pallet from CML to Naas, £55 per pallet from Oakland's to Naas, £50 per pallet from CML to Mitchelstown and £55 from Oakland's to Mitchelstown.

Crates and pallets
A supplier buys into the pool, buying 33 of their own pallets to a standard as prescribed by Lidl.
A supplier will deliver 33 pallets in and the region will give them 33 pallets back out of the wider pool.
The supplier will not be charged for this issue of equipment as they essentially own the product.
Lidl also reuse the cardboard corner posts for stabilising the pallets, giving the posts back to the suppliers who deliver in using them. This cuts the extra cost for the supplier by re-using the corner posts.

The UK Produce buying team are currently exploring the opportunity to improve the quality of produce in Ireland through adopting the buying of Irish sold produce within the UK buying infrastructure. This includes a project with CLD to identify the best supply chain solution.
McBurney’s are currently shipping 10 – 20 loads per day for Lidl. Currently running a cross stock operation only storing Ambient, Produce and Frozen goods.
ay 3 into Irish regions
Aldi currently buy all produce sold within the Irish business through a dedicated Irish Buying Team based in Naas.
No evidence of Lidl owning returnable equipment in the UK & Ireland, however Lidl are currently renting Teacrate’s from PHS Group for their Fresh Meat and Poultry products, these are equivalent to Aldi’s black crates.
This rental contract includes the washing and issuing of all crates.

Returnables (Lidl)
Lidl currently use 8 different types of equipment in store;

Euro Pallets (LPR & CHEP)
D Pallets (LPR & CHEP)
White Pallets (Lidl Pool)
2 litre beverage trays
Plastic UDP
Plant Trollies
Nestable Euro Pallets (Cabka and Pooling Partners)
PHS issue the crates to suppliers, who then deliver goods into Lidl where the empty trays are stacked to be collected by PHS for washing.

Currently Lidl’s charge to supplier for the rental of crates is £0.40 per crate in comparison to Aldi’s £0.25 per crate.
Lidl currently merchandise all produce in cardboard crates to create a market stall feel.
Aldi rent UDP’s from Polymer Logistics, generating over £170,000 per annum in revenue to Aldi.

In 2015 the produce team requested an investigation into the use of plastic equipment for imports from key European countries. The utilisation of a major European pooler was identified as the most efficient solution. The two European poolers identified issue equipment in 27 to36 countries on behalf of major European retailers. This scale makes the model credible. The two business identified were IFCO and EPS, these are summarised in the table below

Returnables (Aldi)
Aldi own 10 different types of returnable equipment;

Produce trays
Meat trays
Potato shippers
1 litre beverage trays
2 litre beverage trays
Euro Pallets
D Pallets
UK Pallets
Plant Trollies

Non-Food Specials
Lidl have a centrally controlled reverse logistics team, co-ordinating recalls and reworks of old stock to a central warehouse.

Lidl operate a 35 day backhauling policy for specials, whereby a picklist is sent to stores for products to be returned

Products that have been returned to rework warehouse are stored until the products next OSD up to a maximum of 2.

Clearance car park sales have also been used in the past to clear out old returned special buys, however this need is reduced with old product sent to specialist clearance stores.
Logistics and Fleet Information
Vehicle Fleet
UK Store deliveries are nationally controlled by head-office in Wimbledon using SAP TMS (Transport Management System)

RDC receives all delivery instructions from head-office
All store deliveries are centrally controlled and contracted to Third Parties Haulage providers

CSL Logistics - Lidl Case study
One of a number of 3PLs Lidl use for store deliveries and waste collection

Lidl UK do not own any transport fleet themselves

Lidl liveried vehicles are owned by 3rd Parties

All DC to store routing and scheduling is controlled centrally using SAP TMS through their Wimbledon HQ

Backhauling goods from suppliers is also controlled centrally.
(inc. organisational

(inc. organisational

Logistics and Supply Chain
Logistics and Supply Chain
Store Distribution (UK)
648 UK stores
126 Ireland stores
655 UK stores
182 Ireland stores
Store Distribution (UK)
Store Distribution (UK)
Logistics and Supply Chain
24 stores within the M25
76 stores within the M25
Greater London
1 produce site covering London and South East UK
1 dedicated rework and storage site for all returned and faulty Non-Food Special Buys

8 UK multi temperature Regional
Distribution Centres
Regional Distribution Centres - Current
8 UK multi temperature Regional Distribution Centres
Regional Multi-temp
Regional Produce
National Rework
Future RDC Networks
3 new multi temperature sites opening;
Wednesbury (West Birmingham) in 2017
Southampton in Sept 2016
Exeter in 2018
IRE: Charleville, Mullingar, Newbridge, Belfast
2 planned multi temperature sites:
Cardiff 2016/17
Isle of Sheppey in 2019
Single temperature national distribution: Under review
IRE: Naas & Mitchelstown
Lidl UK RDCs
Lidl Lutterworth RDC
Wellington Parkway, Magna Park, Lutterworth LE17 4XW
Multi-temp RDC
servicing the Midlands
Lidl Lutterworth RDC
Wellington Parkway, Magna Park, Lutterworth LE17 4XW
Electronic POD System
Lidl Livingston RDC
Tailend Farm, Deans Industrial Estate, Livingston EH54 8SE
Ballyhea, Co. Cork, Ireland
Lidl Ireland RDCs
Lidl UK RDCs Recruitment
In November 2015, Lidl opened a new concept store described as the ‘Lidl of the future’. The store in Rushden, Northamptonshire U.K opened at a fit-out cost of £2 million. At 1,400m, the store is one of the largest in the UK estate, significantly larger than the average Lidl size of 1,000m
Glass frontage allows more light as well bringing energy costs down, which is matched with low level, LED interior lighting

Trolley bays have been moved to the car-park to further open up the entrance area and create feeling of space

Totems advertise fresh bakery in addition to services such as toilets and free parking

Part of a £1.5 billion investment in the U.K over next 3 years ramping up new openings to 50 per annum, all of which are to follow this format
UK Concept
A warm welcome to Lidl at the store entrance

Positive approach to customers enhanced with bicycle shelters, additional navigational signage and Lidl branding on glass
New format is step change with in store bakery a focal point, dedicated 80m preparation room providing 35 SKU’s of fresh product to entice customers entering store and providing real differentiation from competition
A large fresh bakery is encountered immediately on entering the store

Immediate sensory impact both visually and via fresh smell

Much of the bakery items are sold loose to emphasise freshness
UK Concept
Other features include the adoption of a new dark grey colour scheme and POS which helps to portray a more quality-orientated, sophisticated and cleaner image.
UK Concept
The larger size of the store, has allowed it to introduce wider aisles at 2.7m, a larger produce section (40% larger than previous) brought to the front of the store and an expanded BWS offer, all enhanced with open ceilings and the removal of hanging boards.
UK Concept
Produce is displayed on ‘fresh’ branded wood-style crates.
The expanded produce has been moved to the front of the store, next to the bakery
Premium BWS fixture incorporating points based wine guide and a craft ale section

Selected range in crates adding premium feel

Individual bottle divider system ensuring sharp displays with accurate POS location

Self check-out zones and a modification of existing tills allowing customers to pack whilst cashier continues to serve, further evidence of mind-set change to meet customer needs
There are six self-service checkouts, supervised by one member of staff

The addition of self service demonstrates Lidl's desire to embrace customer trends within national markets

UK Concept
Chilled island , similar to what is found in more mainstream UK supermarkets such as Tesco, Sainsbury’s and Waitrose

Move away from chest chillers with vertical chill space finished with premium colours
Expanded space for key growth categories with the focus on fresh; Meat, Fish, Bakery & Produce

These categories are stronger focal points as a result; the bakery creates a feature front of store whilst fish is now located in a stand alone chiller to give focus

Crucially it is the space not the range which has changed to create the new concept

UK Concept
Low level LED and wider aisles improves the shopping experience, while replacing the typical yellow and blue colour scheme with dark wood and black signage gives a more upmarket impression
Lower Specials tables and removal of price board for specials adds to the feeling of space

Wood effect surrounds on NFS tables removing wire ‘cage’ look

High level category headers directing customer journey through store

UK Concept
For legal reasons alcohol cannot be merchandised outside of segregated area – thus none on flexible 4 tier special shelving
International Concepts - Ireland
Ireland – Local brand names offered in addition to category headers – reinforcing provenance message
Increased ‘Just Free’ & whole foods offering.
Non Food given category headers to help facilitate customer mission
Bakery and food to go sections have adopted the lighter wood finish trialled in Switzerland

Additional POS space dedicated throughout store highlighting Irish provenance of key core range commodity groups
International Concepts - Ireland
Latest new format store in Gorey has the addition of ‘Lidl to Go’ range seen elsewhere in Europe, with hot prepared food backfilled adjacent to in store bakery
Additions to bakery include; loaf slicing machine and wall mounted menu detailing all product ingredients, giving additional premium feel

Additional ambient meat section catering for local market in Spain and Spanish islands such as Lidl Majorca
International Concepts - Spain
Current trial of enhanced Health and Beauty fixture focussing on Lidl ‘Cien’ brand
International Concepts - Spain
‘Lidl to go’ range offering hot prepared food. Back filled display adjacent to in store bakery

‘Pick n Mix’ style frozen shell fish self served by customers from chest freezers
International Concepts - Spain
Exterior signage has adopted a ‘softer’ approach whilst consistently inviting customers to comment or contact Lidl via a variety of social media platforms
International Concepts - Spain
International Concepts - France
Bread fixture has addition of plastic covers, with product only accessible via designated scoops rather than by hand to minimise customer handling of product and improve perception of quality
Existing store refurbishment taking place in line with new store format.

Part of a project to invest €450 million over 5 years refurbishing 900 of Lidl’s 1,500 French stores
Trial of lighter wood effect on bakery with a slightly changed bread menu, fixed to pillar behind perspex cover
POS surrounding office door dedicated to celebrity chef endorsement
Additional gondola end wine fixtures in keeping with lighter wood grain as per rest of store
Trial of electronic HD screens in place of paper POS and poster frames

Dual customer tills, allowing customer to pack whilst another is served
International Concepts - Switzerland
Free electric car and bicycle
charging points in car-park

Dedicated merchandising space to Lidl ‘Bio’ range of organic products
Entrance areas in Switzerland have added recycling points in welcome wall for customers, In addition to local picture and welcome message
International Concepts - Switzerland
To do this Lidl will focus on its private labels, benchmarking its ranges against those of Monoprix in France and Migros in Switzerland to make sure that it is offering a quality product at an affordable price
International Benchmarks – Migros
Frederic Fuchs CEO of Lidl France, detailed to Le Monde that Lidl was aiming to change shoppers' perception of the retailer and its products. This has been rolled out at a national conference of French store managers
Founded by Gottleib Duttweiler in 1925 Migros is SWI largest retailer and employer
Founded on selling just 6 basic foodstuffs to households who struggled to have access to markets it has expanded considerably so that now 99% of SWI households either shop at Migros, go on holiday with Hotelplan or bank with Migros

Founded on a concern for health and wellbeing of customers, Migros does not sell alcohol or tobacco
0.5% of turnover is dedicated to social and cultural projects making Migros industry leaders in many areas of CR
If EBIT surpasses 5% retails in stores are lowered

Pioneers of the self scanning system, developed with Polygon in 2009. The aim is to remove the need to queue or to pack in store, which in feedback given highlighted these as the two biggest frustrations of customers

Named ‘Subito’ up to 20% of customers are now users accounting for up to 40% of store turnover, rising to 50% in busy periods depending on location. All target throughput times have been broken in ‘Subito’ stores

International Benchmarks – Migros
Incumbent French discounter with quality focus on both food and non-food
Now part of the Casino Group
International Benchmarks – Monoprix
Store layouts have non-food on entry, focussing on textiles and health & beauty
Fresh produce is a key focus for the business,
Trial of self scanning system in stores
Fresh juice now served in store with the produce fixture
Focus on fresh and provenance is the consistent message throughout the store
International Benchmarks – SuperValu
Trial of self scanning system in stores
Focus on fresh and provenance is the consistent message throughout the store
International Benchmarks – SuperValu
280 local suppliers now part of the SuperValu ‘Food Academy’ programme

Supporting over 1,100 Irish jobs with 85% of participants now claiming they will be recruiting over the next 12 months
Largest grocery share in Ireland at 23% with 2.8% year on year growth

This has predominantly been driven across fresh categories , produce, meat and fish as the market has moved toward higher frequency shops
Business claim that over 70% of products are now sourced or produced in Ireland
1,900 SKU’s spread across 3 tiers; Daily Basics, SuperValu Range & SuperValue Signature Tastes
Business Area Overview – 2.Key Personnel
Company Structure
Company Structure
Lidl Group Executive Management
(since March 2015, reports to management board)
Alexander Sonnenmoser (IT)
Christoph Pohl (Procurement)
Heiko Hegwein (Lidl digital)
Robin Goudsblom (Goods)
Jurgen Achenbach (International Marketing)

Category management within procurement
Alexander Lauer, Head of Category Management, started with Lidl 1st of April 2016
to operationalise strategic direction
know how to be shared with international subsidiaries

Digital team 300 employees to explore digital opportunities for Lidl
Company, Subsidiaries and Investments
Lidl National Head Office Organogram (UK)
Lidl National Head Office Organogram (UK)
Lidl Head Office Organogram- Buying
Lidl Regional Distribution Centre Organogram (UK)
Key Personnel
Kaufland CEO Frank Lehmann (left), Schwarz Group CEO Klaus Gehrig (middle), Lidl CEO Sven Seidel (right)
Sven Seidel Biography
Sven Seidel Influences
Christine Rittner Biography
Jesper Hojer Biography
2.2.5 – Alexander Sonnenmoser Biography
Alexander Sonnenmoser’s (///AHEAD) Project
It has been revealed Lidl is in the process of rolling out a new electronic merchandise management and information system following successful trials in its Austrian stores

The roll out of the system, which began in Austria in May 2015 and is based on SAP for Retail powered by SAP HANA, is now continuing in other countries

“This new platform is making us fit for the future,” stated Alexander Sonnenmoser, Lidl divisional board member for business technology

“We were looking to map integrated process chains right through from the vendor to the customer ‒ rather than individual functions,” said Sonnenmoser

Lidl’s new system was implemented in a joint project with partner KPS, which took an agile approach based on its “Rapid Transformation Method”. The vendor added that the standards developed for eLWIS will form the basis for implementing the new system in all of Lidl’s operations
Lidl CEO Relationships
Began his career in 1971 in Aldi South

Five years later, in 1976, Gehrig joined Dieter Schwarz , who was looking for a manager at that time for his twelve Lidl stores

In 2004 he became sole managing partner of holding company Schwarz Unternehmenstreuhand (name that Schwarz Group was formerly known as)

"Number one: we want Lidl to get stronger in existing markets. Number two: we will expand to new countries. Number three: we will fundamentally overhaul Kaufland," Gehrig told the Manager magazine 

Frank has been 25 years with the company, CEO of Kaufland since 2013

He has built up a good reputation with his expansion of Kaufland in the Czech Republic

He announced in the press that the hypermarket chain would concentrate on its existing markets, in particularly launching a major restructuring in Germany, where it is considering the viability of 20 to 30 of its 640 stores

On July 1 2016, Kaufland has reorganized its structure in Germany. The goal: more regionality and customer proximity
Klaus Gehrig
Lidl International Management changes
Sven Seidel Vision
Lidl wants to be No 1 employer of choice over Google, Apple and Amazon

Lidl wants to be perceived as a good employer

Sven continues to recount how he has collaborated with the newly created team (HR) to break down hierarchical sub-structures within the company since the day he took office. The company is to become faster and more direct, enabled to better react to the major challenges of the market

Fear as a management tool? That was in the past.

At Lidl, responsibility will now be delegated – as well as trust
Five Leadership Principles
Managers are to act as ‘player coaches’ instead of leading from the side-lines, employing clear and fair communication.

We place confidence in our employees and trust that they will complete all tasks to the best of their ability, and that they will develop ideas and suggestions that will benefit our business.

We are open to changes and challenges with the aim of developing and continuously improving our business.

Together with Lidl personnel manager
Christine Rittner
, Seidel formulated five leadership principles that are to elevate cooperation at Lidl to a new level.
We enable our employees to work effectively and successfully for our business and we support our employees’ development.

We honour our agreements with our employees as a trustworthy partner.

Each individual should treat their employees the same way they wish to be treated.
Aldi Management System

Five Leadership Principles
1. Managers are to act as ‘player coaches’ instead of leading from the side-lines,
employing clear and fair communication.

The Aldi Management System
Besides performance reviews and goal setting, coaching should be the starting point for all employee development. Leaders are required to help their employees to recognise their own strengths, short-comings and personal limits.

AMS, page 66
Five Leadership Principles
2. We place confidence in our employees and trust that they will complete all tasks to the
best of their ability, and that they will develop ideas and suggestions that will benefit
our business.

The Aldi Management System
By acting responsibly, we strive to maintain and encourage the trust and satisfaction of our customers, employees and partners.

The cooperative style of leadership used within our Company is intended to foster respectful and trusting cooperation and create a positive work atmosphere.

AMS, page 6 & 9

Five Leadership Principles
3. We are open to changes and challenges with the aim of developing and continuously
improving our business.

The Aldi Management System
Our Company recognises the need to continually evolve and learn.

AMS, page 6

Five Leadership Principles
4. We enable our employees to work effectively and successfully for our business and we
support our employees’ development.

The Aldi Management System
Employee satisfaction ensures our Company’s success.
The focus of our Company is our people.
Highly motivated and committed teams ensure our competitive advantage. We take pride in selecting the most competent, goal- orientated employees for our Company. By providing specialised on-the-job training and induction, we develop the professional, technical and interpersonal skills for our employees.

AMS, page 6 & 7
Five Leadership Principles
5. We honour our agreements with our employees as a trustworthy partner.

The Aldi Management System
Each leader has the duty to allow their employees to take action and make decisions freely within the scope of their job description, and to observe the limits of their own area of responsibility.

AMS, page 18

Sven Seidel General Interests
Reportedly enjoys attending wine festivals in Switzerland
Reportedly enjoys playing golf
He loves watching football
His name is associated with the Lean-retail concept
He takes pride in how he has collaborated with the newly created team to break down hierarchical sub-structures within the company since the day he took office.
Mad about Fußball
Mad about Fußball
The Clean Clothes Campaign (CCC) is the textile industry’s largest alliance of unions and NGO’s. The CCC was founded in 1989 and has lobbied companies and governments extensively to offer direct solidarity support to textile workers as they fight for their rights and demand better working conditions.

The CCC is an alliance of organisations in 16 European countries and have a partner network of more than 200 organisations and unions in garment-producing countries to identify local problems and objectives. They co-operate extensively with similar labour rights campaigns in the United States, Canada, and Australia

CCC has produced company profiles for many key retailers including Lidl & Aldi

The difference in scores is a reflection of the difference in buying process

All textile products at Lidl are internationally co-bought, with all national Buyers invited to Asia x4 times per annum

In addition to greater visibility of the manufacturing base, Lidl have established a consolidated supply base for their business with the benefit of greatly enhanced economies of scale

This is supported with Lidl’s flagship Supplier Qualification Programme” (SQP) that it is running in Bangladesh in partnership with GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit or the ‘German corporation for international cooperation’).

SQP current phase involves eight factories with more than 26 000 employees

Lidl has been working to improve wages through two methods: firstly, by ensuring overtime is properly paid and that workers are correctly classified for the work they do. Secondly in Bangladesh, Lidl commissioned GIZ to organise the payment of direct bonuses to workers in one supplier firm in recognition of their quality work

This payment amounts to more than a month salary per cash disbursement in addition to the normal monthly wage paid by the factory
Lidl have to date endorsed 18 of the U.K governments responsibility deal pledges as part of the government's Public Health Responsibility Deal, launched in March 2011. The aim of this voluntary partnership is for businesses and influential organisations to work collaboratively to improve public health by creating the right environment for people to make informed choices that lead to healthier lives

Lidl were the first U.K supermarket to announce ‘healthy tills’ generating significant levels of PR
Buying Process
CR Germany is increasing the amount of segregated palm oil contained in food products and investigations are being conducted on whether to push this matter further with food suppliers. However, a public statement regarding the conversion to 100% segregated palm oil is not currently in discussion.
Fish Buying Policy

The current fish buying policy is under review. Conversations with buyers and suppliers raised doubts about market availability as of 1 January 2018 for all aquaculture products to be certified only by the EU organic or the ASC standard. Therefore, CR Germany is discussing the possibility of accepting GlobalGAP in addition to the ASC and EU organic standard.
Discussions have been held with appropriate buyers as well as with ALDI North. CR Germany aims to work towards a final policy wording for approval by the end of June. However, this may also require longer. 
Germany is converting products to UTZ-certified tea, however, without drafting a policy or communicating a specific goal for tea. The reason for this is the lack of public interest in this area. 
Tea Buying Policy
Coffee Buying Policy
CR Germany is continuously reviewing the coffee goal and working on the topic, but a commitment regarding a timeline is not on the near horizon. 
Palm Oil Buying Policy
Lidl combined this with a competition for customers to suggest ‘characters’ which would appear on the packaging of the healthy snacks to be merchandised on the tills. Leveraged via their Facebook page this created additional traffic and interaction between Lidl and the public

Lidl website states that the business has adopted “Front of pack traffic light on all own label products” however following the in store analysis as part of the project there are multiple SKU’s on which this has not been rolled out as yet
Current status at ALDI SOUTH Germany:
Buying Process
Buying Process
Examining the data from ComRes, it is clear that more visible supplier relationships does represent an opportunity for both Lidl and Aldi
Which is supported by the evidence that when asked which were the most important values held by a supermarket, treating suppliers fairly is the most important value to U.K consumers, even above employee wellbeing
Supply Chain
Lidl do not appear to engage in a Social monitoring Programme (SMP) to provide supply chain transparency

No statement from business to date on modern slavery within supply chains

As with much of the U.K website it is being heavily re-designed with the CR element launched in June 2016

‘On the way to a better tomorrow’ is the mission statement for Lidl CR

As part of Lidl’s sponsorship of the English FA, football sessions are offered run by professional coached to help develop young peoples technique as well as fitness and social skills

Lidl has invested in professional coaches for clubs, new equipment and facilities

Lidl ‘Oaklands’ brand is now official supplier of fruit and veg to the England team, as ‘Carrick Glenn’ is now the official water
Very similar position with the sponsorship of the Scottish FA

Lidl has invested in 300 skills centres across Scotland to help nurture future talent

Specific ‘Strathvale Farm’ brand as official supplier of meat and poultry

Sponsorship of Welsh FA based around ‘play more football’ campaign

Based in schools around a ‘turn up and play’ environment

‘Birchwood Farm’ official meat & poultry supplier

In addition to the sponsorship of each Football Association Lidl organised ‘Football Zones’ at various different events and City Centres in 2016
As well as hosting FA coaches providing skills sessions through various different interactive formats, there are opportunities to win up to £100 free shops and autographed national team shirts
Lidl’s two principle charity partners are ‘CLIC Sargent’ – supporting young people suffering cancer and ‘Keep Britain Tidy’ which engages with the public on reducing waste and litter in the environment

Funds for these partners come from a proportion of the 5p levy on single use plastic bags brought into the England (the rest of the U.K had already implemented the charge) on the 5th of October 2015.

Lidl have committed to donating £500,000 to each partner over a 12 month period


A three year partnership which has now been extended

Barretstown offers free, specially designed camps and programmes for children and their families living with a serious illness – supported behind the scenes by 24 hour on site medical and nursing care.

So far over €1million has been raised

The majority of money was raised through employee led initiatives – Employees become ‘Barretstown Buddies’ and organise fundraising

The Barretstown Partnership is advertised regularly – in leaflets and brochures, online and instore

Collection boxes sit in store to allow customers to donate while shopping

LGFA (Ladies Gaelic Football) A three year sponsorship worth over €1.5 million in the first year alone

This sponsorship has had heavy media support – both through Lidl’s advertising and in newspapers and TV across the country

Lidl have advertised this sponsorship in their leaflets, on TV, online and with POS ad OOH signage, there is also a box instore for customers to nominate a local LGFA club for support

This campaign has been run on the line of Serious Support for Women’s Sports, starting with a spoof ‘Ladyball’ ad

Northern Ireland
HYAs – Heroes of Youth Awards Northern Ireland
Lidl sponsored the first set of awards last year and are sponsoring them again this year
Lidl have a named award
The Balmoral Show
Lidl sponsored The Annual Balmoral Show in Northern Ireland
They use this as a chance to showcase their commitment to Northern Irish suppliers
Lidl sponsor the show and attend it with a ‘Green Bard’ stand
Lidl Northern Ireland Community Works
Similar to Tescos ‘Blue Token’ campaign last year Lidl asked the public in Northern Ireland to nominate local charities and voluntary groups in their area
Lidl donated over £250,000 in money and products to the chosen community groups
A ‘Lidl Community Team’ visited every group to donate to them in person
There were many tie-in events such as in-store sampling and visits to charities that were nominated but not chosen
This initiative was covered over a series of weeks in the Lidl leaflet
The same nomination process is being carried out for 2016
Within Northern Ireland Lidl has adopted a mixed approach of U.K initiatives such as partnership with CLIC Sargent however there are a number of activities unique to this market
In addition new RDC’s fitted with refrigeration heat reclaim and solar panels
Ground exchange heat pumps now installed under the carparks where possible using an estimated 8,000m³ less gas as a result
New U.K head office in Tolworth London to be built to BREEAM excellent standard, which will be within the top 10% of non residential property in the U.K
Over the last 12 months, Lidl have significantly upped their media activity on CR with increased press releases and bold commitments published including:

Commitment to sustainably-sourced bananas by the end of 2016 (ahead of Aldi)-

Paying the Living Wage (ahead of Aldi)

Partnership with Keep Britain Tidy on carrier bags

MSC-certified lobster for Christmas

This may well be as a result of Daniella Tulip moving from role as PR Director to CSR Director on her return from maternity
Lidl are keen to use the exterior of their stores to convey key messages on 48 sheets

Recently this has been dominated by CR messages either in regards to products (with a large emphasis on provenance) or community messages with emphasis on the strategic partners
This is continued within the store leaflets, where CR messages often take prominent positions on front or rear covers or even double page spreads
Focus in each country tends to be on supporting local producers, provenance of product or leveraging PR from the CR sponsorship deals
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