Aldi UK which is part of Aldi Sud announced that in the year to December 31 2013 turnover rose 35.7 to GBP 5.7bn and pre-tax profits rose 65.2% to GBP 260.9M. Aldi has seen its growth in the UK rocket despite the promotional and pricing tactics of Tesco, Asda, Sainsbury's & Morrison's.
Aldi will also sell more 'aspirational' products this year for Christmas including Caviar which will cost GBP 9.99 for 20g. Aldi will also open 54 new stores in 2014, 65 in 2015 and aims to build its store base from 600 in 2015 to 1000 by 2022. According to Kantar Worldpanel Aldi currently has 4.7% market share and is the fastest growing discounter in the UK.
Matthew Barnes Joint Md of Aldi UK said in a recent interview with Retail Week that “We conducted a huge amount of research to understand why we weren’t as successful as we were in other countries that Aldi operates in,”.
“Customers felt our product range wasn’t broad enough, they felt our range wasn’t British or fresh enough, and it was also very clear that customers didn’t understand the Aldi brand. If you go to Germany, Austria, Switzerland, the Aldi brand stands for something so clear it’s almost got iconic status. Here, people were luke warm about it.”
Aldi stores in the UK typically stock 1350 SKU's comprised of 95% private label products. The premium Specially Selected range now account for nearly 5% of UK sales, up from 1% in 2010. 51% of sales coming from UK sourced products and the range of Meat and Fresh Produce has increased by 60% over that past 3 years.
In order to help it continue on its path to growth Aldi now has a mystery visiting a store every week as well as organising focus groups and store walks with customers, as well as listening panels. “We have put the customer at the heart of everything we do,” says Barnes. Adi will also introduce new clearer signage next year to help customers navigate the stores after receiving customer feedback on the issue.
By November Aldi will have invested £30m installing over 5km of chilled cabinets to help it tap into the fresh market. With over 55% of sales coming from fresh produce this is a key area for Aldi to focus on.
It is clear Aldi has grown significantly in the UK and this can be attributed to Aldi UK's decentralised model where Barnes states “We have our core discounter principles but we also accept the fact that markets are different. Our journey here has been very much driven by what the UK customer needs.”