5.2 Deep discounter / retail sector

Question 1

Name 3 examples of a deep discounter!

Answer 1

1. ) Germany Aldi & Lidl
2. ) Danish Netto
3. ) USA Trader Joes

Question 2

How do deep discounter achieve to keep their costs low?

Name 5 bullet points!

Answer 2

1. ) lower margin = higher sales
2. ) shops are basic (interior) / no premium locations
3. ) product range its limited
4. ) rarely stock major brands
5. ) buying from producer = no intermediary cost

Question 3

1.) When do the deep discounter stock more expensive wines?

What could be the advantage out of that?

Answer 3

1. ) - during Christmas time
   
   • in affluent areas

2.) customers with strong spending capacity
= buying high volumes of less expensive wine