Interview with uwe Sommer
“The concept of Lindt & Sprüngli's shops is unique in the world.”
Derek Tanner (l.) and Uwe Sommer (r.)
Mr. Sommer, as member of the Group Management your responsibilities extend not only to Global Retail, but also to International Marketing and Sales. On top of that, you act as line manager for several countries. Can you tell us a little more about how these functions interact with Global Retail?
Over the past 20 years we have systematically built up the Lindt brand via traditional and social media, as well as through different points of sale and promotions, enhancing our reputation as “Maître Chocolatier Suisse depuis 1845”. We have developed guidelines for our “Master Chocolatiers” and our chocolate products. Even so, it is actually our own shops that offer the best possible environment to experience firsthand the Lindt brand and the world of our Master Chocolatiers. The interaction here is perfect.
What about the products?
Our best-selling products LINDOR and EXCELLENCE – which benefit from the strongest advertising support worldwide – also generate the biggest percentage of sales in our retail stores. Most importantly, we need to offer consumers a much wider choice of products and packaging. To give just one example: our stores currently stock 21 varieties of LINDOR chocolate truffles.
Our Global Retail Division developed the Pick & Mix concept, which is not only the key element in our own shops but is also gaining popularity in the retail trade as a whole.
In addition, our Boutiques offer LINDT fans special products that cannot be purchased elsewhere. Aside from that, our shops provide the opportunity to test new ideas and products which we can then roll out to the wider retail trade.
Are the prices in Lindt Shops the same as in the rest of the retail trade?
We are not allowed to set the consumer prices for the retail trade. Even so, we do our best to ensure that Lindt consumers pay roughly the same prices in our Boutiques and Cafés as those charged by our major retail partners. The prices charged in the factory outlets should never undercut current promotions in the retail trade.
Do the retailers see Lindt's network of shops as direct competition?
Some partners did voice concerns initially, but we are able to show that whenever we open a new store, it helps to boost local sales of Lindt products within a 20-mile radius. This is partly because consumers are able to experience the brand and the product variety firsthand, eliciting a more emotional response. Visitors normally also have the chance to sample a LINDOR truffle as they enter the shop.
The first Lindt stores appeared in the US about 20 years ago in New England, and this is still the region where Lindt commands its biggest market share. In many countries we invite our retail partners into our own stores so we can present our brand and product range. The response is always very good.
Given your decentralized structure, how is Global Retail viewed within your own country organizations?
Similar to most innovation: some people approve, while others are skeptical, especially if they are asked to take over a new concept more or less on a one-to-one basis. The response is now overwhelmingly positive. Virtually every country has plans – or is working with Global Retail on plans – for expanding its own retail operations. Such a strong response underscores the success of this concept and the skills of our Global Retail Division.
Uwe Sommer joined Lindt & Sprüngli's Group Management in 1993 and is responsible for Marketing & Sales. Since 2012 he has also been in charge of Global Retail, and has played a key role in expanding this new line of business into a profitable division.
