Austrians save – Hofer boss: “People are attracted to discount stores”

The Hofer boss revealed to ‘Krone’ how sales have increased recently: last year they climbed from 4.6 to a record high of 4.9 billion euros – an increase of more than 6.5 percent. For the first time, Hofer has reached the five billion euro mark. Leitner: “People are attracted to discount stores.” Since 2019, turnover (4.3 billion euros at the time) has increased by no less than 14 percent. Now the retail professional explains how the chain wants to grow further and how prices can be lowered again.

The number of branches has increased from 500 to approximately 540 since 2019
One reason for the expansion was of course the increase in the number of branches. Leitner: “In recent years we have not only expanded our branch network, but also modernized it. While there were still approximately 500 locations at the beginning of 2019, we now have approximately 540 locations in Austria.” Hofer, a subsidiary of the German Aldi Süd group, has a market share of around 20 percent in the highly competitive food business across Austria.

Increasing income even further is definitely a challenge. Because with the current store density, Hofer “has very good coverage. On average, every Austrian can reach a Hofer branch in less than 15 minutes.” To attract even more customers to the stores, the manager has now launched several initiatives:

• Expansion of own brands: Leitner: “In 2024 we will continue to focus on innovations for our own brands. For example, at the beginning of this year we introduced a new vegan private label called ‘My Vay’.”
• More products from Austria: “We want to promote regional agriculture and secure long-term partnerships. Since mid-2020, our entire, permanently available range of beef, pork and chicken has come 100 percent from Austria. Since 2021, this also applies to meat products, with some exceptions such as international specialties and marked short-term promotions.”
• E-charging stations: “We will install e-charging stations at all Hofer parking lots.” There are currently 30 parking spaces and by the end of 2024 there will be more than 100. This is intended to attract e-motorists.
• Focus on sustainability to attract environmentally conscious customers: A photovoltaic installation that is technically suitable for this is installed on each branch roof. Hofer wants to convert 230 branches by the end of 2026. In addition, for the plastic bottle deposit machines that will be mandatory from 2025, a concept has been developed that is “simple and uncomplicated”: in most locations they are located right next to the entrance.

Regarding prices, Leitner emphasizes that Hofer follows a long-term low-price strategy, even though there are always promotions – this weekend, for example, strawberries costing 2.49 euros per pack (minus 28 percent), Milka Easter bunnies for 1.59 euros (minus 30 percent) or a cheese board for 1.24 euros (minus 50 percent). Leitner: “With these promotions we want to offer an additional price advantage.”

Price increases are absorbed for as long as possible
Prices had to rise for the regular range due to increased costs, as with the entire food trade, but: “First we try to absorb any price increases ourselves as best and for as long as possible.” Leitner promises: “As soon as the situation on the market improves, we will immediately pass on price advantages to our customers. That’s why we recently reduced the prices of more than a thousand products.” The range includes a total of more than 3,000 items.

The chain is looking for new employees and offers a total of 180 training places
A topic that Hofer is also concerned with is personnel needs. The company is constantly looking for motivated candidates, especially in the field of sales and logistics. “In addition to our core activities, we are growing mainly in the areas of supply chain management and IT at Hofer’s headquarters in Upper Austria. We want to fill approximately 80 vacancies,” said the Hofer boss.

Of the currently more than 12,000 employees, approximately 77 percent are women and the part-time ratio is also high. Interns are also in demand again. Leitner: “When apprenticeships start in September 2024, our goal is to fill a total of 180 apprenticeships at our branches, our own chocolate factory and at the head office in Sattledt!”