Changing property projects and construction processes in the retail sector

The food retail sector is increasingly becoming an active player in the property market. Store networks are no longer being built according to standardised patterns, but are increasingly being adapted to urban planning requirements, space availability and usage concepts.

One example of this development is provided by Aldi Süd, which is specifically looking for partners for new projects and defining its role beyond traditional local supply. The focus here is on a broad approach: investors, project developers and local authorities are addressed in equal measure. The aim is to develop property projects together at an early stage, taking into account both economic and urban planning requirements.

Aldi Süd property projects rely on flexible utilisation concepts

The design of new locations depends heavily on the respective environment. While traditional, single-storey shops continue to dominate in rural areas, more complex buildings are increasingly being constructed in urban locations. Mixed-use concepts play a central role here. These projects combine different uses within one building. For example, retail space is supplemented with living space, office units or other commercial uses. This creates dense structures that are particularly relevant in cities with limited building land. The approach is clear: not every project follows a fixed pattern. Instead, it responds to local conditions, resulting in a greater variety of building forms. This flexibility is a key component of the current development strategy.

Construction cost development and standardisation as a control instrument

Parallel to the conceptual changes, cost trends represent a key challenge. Rising construction prices have made numerous projects more difficult or delayed in recent years. Aldi Süd is countering this trend with a combination of standardisation and simplification. Reduced complexity in planning and clearly defined construction specifications allow processes to be better controlled. This approach is complemented by digital tools and internal expertise, which enable more precise costing. It is worth noting that we have succeeded in undercutting the construction cost index several times. This development indicates that savings potential can be realised through structured processes and standardised solutions without restricting the functionality of the buildings.

Partner search as a strategic component of project development

The search for suitable partners is an integral part of the current strategy. This is not just about capital or traditional project development, but also about direct dialogue with cities and municipalities. This approach is aimed at coordinating projects at an early stage and better preparing approval processes. At the same time, it increases visibility in the property market, which makes it easier to develop new locations. The focus is on different partner groups:

• Investors for long-term property projects
• Project developers with regional expertise
• Municipalities as the central approval authority
• Networks for early location development

Approval processes as a bottleneck in the construction process

A recurring issue in project development is the lengthy approval process. Building applications pass through numerous offices, often in parallel or sequential processes. These processes are not only time-consuming, but also organisationally demanding. In practice, it is clear that many procedures are not yet fully digitalised. Although initial approaches exist in individual local authorities, these often end in analogue intermediate steps. As a result, efficiency gains are lost. There is also a structural problem: many authorities lack human resources. This leads to delays that have a direct impact on project lead times. Accelerating these processes is therefore a key lever for the construction industry.

Digitalisation and reducing bureaucracy as decisive factors

The discussion about faster construction processes is closely linked to the topic of digitalisation. An end-to-end digital approval process could simplify many procedures and make them more transparent. Currently, however, there is often a lack of complete implementation. Aldi Süd sees a clear need for reform here. In addition to digital solutions, a reduction in bureaucratic hurdles is also required. This does not mean a reduction in standards, but a more efficient organisation of procedures. Other countries show that faster and more digitalised processes are possible. The comparison makes it clear that there is still potential for development in Germany.

Market environment and prospects for new projects

Following a phase of heightened uncertainty, there are signs of stabilisation in the property market. Interest rate trends and economic conditions play a decisive role in this. With increasing planning certainty, the willingness to realise new projects is also increasing. For Aldi Süd, this means a possible expansion of the project volume. However, the prerequisite remains an environment that supports investment - both through economic and administrative framework conditions. The development shows that the food retail sector is redefining its role in the property market. In addition to the supply of goods, the ability to realise complex construction projects and adapt them to different requirements is increasingly coming to the fore.