Aldi Süd plans to expand its activities in cities

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Aldi South announced that it plans to expand its operations in cities and is looking for partners to collaborate on the project.

The discounter has created a central point of contact to simplify acquisition and cooperation across its entire distribution area.

This move will help forge new partnerships and maintain and support existing collaborations with pharmacies, department stores or other companies, said Aldi Süd.

Real estate market

This decision responds to changing conditions in the real estate market. Cities and municipalities focus on using land in ways that conserve resources and create new living spaces where possible.

In addition, they also face the challenge of strengthening city centers, which are under increased pressure from online sales and restrictions related to COVID-19.

Read more: Downtown stores count the cost of ongoing lockdowns

In this context, food anchored properties in integrated locations become significantly more attractive, the retailer noted.

“We believe in the city center,” says Jan Riemann, Real Estate Director at Aldi Süd. “We want to revitalize and develop the city center to be even closer to our customers. Short distances make shopping easier and reduce traffic jams in cities.

Last year, a group of German associations called for “creative cooperation” between inner-city commerce players to counter the business slump caused by the coronavirus pandemic.

Regional commitment

The discounter added that it is strengthening its regional commitment by opening project development offices in Cologne, Frankfurt am Main and Offenbach, as well as in Stuttgart and Munich.

These “local offices” will specialize in the development of mixed-use properties in the respective areas.

Riemann explained, “Planning a location with food, shopping and a rooftop daycare in the middle of town is much more complex than building a stand-alone branch in the countryside. This is why we are pooling our expertise. “

Riemann added that Aldi Süd would function as “advisers and developers of ideas” and said: “Together with our partners, we want to develop properties that meet the demands of urban development and create added value for all users. . […] What matters to us is the long-term perspective, and for that, the emphasis is on flexible development with the right mix of users. “

Store development strategy

The opening of these offices is part of a realignment of Aldi Süd’s store development strategy.

The company is also strengthening other functions such as marketing, management of major real estate projects and support for supra-regional cooperation.

“We invest in cooperation with cities and municipalities, investors, project developers, asset managers, brokers and architects,” Riemann added.

“We want to be the first point of contact for them when it comes to realizing properties embedded in food.”

© 2021 European supermarket magazine. Article by Dayeeta Das. For more information on retail, click here. Click on subscribe register for ESM: European Magazine of Supermarkets.


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