Institute for Simplicity

Consulting Based on the Principles of Simplicity
  • Quote

    • Less isn’t more; just enough is more

Walmart is next

Article published on 2017-03-06

Aldi (and partly Lidl) have given the established retailers in Great Britain and Australia a hard time. The question was always when does Walmat in the US start suffering. They already made their experience in the UK where life got pretty miserable for Asda. Now Walmart gets attacked in their american home market. Their claim „Save money. Live better“ is at stake. Apparently Walmart is not so much a discounter as they always seemed to be.

The German Lebensmittelzeitung announces now that „the retailer will reduce prices on their american home market in order to attract customers again.“ Walmart´s price reductions proof that their prices had been too high.

Aldi wins again “Global Simplicity Index”

Article published on 2017-02-01

Researchers of Siegel & Gale asked 14,000 consumers in nine countries which would be their favorite company to shop at because of simplicity.

For the fourth consecutive time ALDI has won the “Global Brand Simplicity Index”. LIDL follows already on place 4.

Simple companies are by far more profitable and are being much more often recommended to friends according to Siegel & Gale.

This shows that orientation, clarity and concentration on the essentials is important for customers. ALDI convinces by its clear assortment and transparent every-day-low-prices approach.  Customers are not being confused by complicated discounts or loyalty programs. Customers are loyal because there are no loyalty programs.

About the complexity of modern payment methods

Article published on 2016-12-28

German consumers seem to understand more about complexity than we thought. Mobile payment stuggles to become popular, a recent research by Deloitte states (FAZ, 21.12.2016). Many consumers worry about security, do not see any real value in this new technology, do not know where stores accept this payment method or they simply find it too complicated.

Consumers in Germany are famous for their preference for cash. Considering aspects of complexity, using cash for payments has some advantages: no need to check the expenses later on. Once paid by cash the payment process is completed, no invoice or account statement which requires checking later on. All electronic payments at the bakery, the newspaper stand or grocery store need an additional review when the account statements arrives or the credit card company sends the bill.

Older entries:

22.11.2016: ALDI is becoming a very normal company – ALDI today and the ALDI system

14.10.2016: Eurowings: The complexity of Wining and Dining

07.10.2016: Mixed boxes: Discounters heading into the wrong direction

12.02.2015: Tesco: Caught by complexity and What is Top Management good for?

17.12.2014: Sales per Squaremeters or Concentration on the Essentials

24.10.2014: Concentration and Working in Focus Areas

29.09.2014: “The greatest shortcoming of the human race is our inability to understand the exponential function.”

25.07.2014: What remains after Karl and Theo Albrecht have passed away

30.01.2013: Marissa Mayer: a little bit of Google at Yahoo Inc.

03.01.2013: Interview of Retail News, Turkey, with Nils Brandes, Co-Author of “Bare Essentials – The ALDI Way to Retail Success”

21.10.2012: What is essential?

23.09.2011: Out of Control: UBS Investmentbanker Adoboli causes loss of more than 2 Billion Franks

08.09.2011: About today´s complexity: crazy European Union

25.08.2011: The “Koefte-Consultant”

07.08.2011: Ploughhorses or Showhorses