Begbies Traynor Group

Aldi steps up supermarket war by launching online shopping

Date Published: 28/09/2015

Today’s disappointing results show that even Aldi can’t escape the clutches of the ongoing supermarket price war. As its bigger rivals have committed to investing billions of pounds worth of price cuts over the next few years, Aldi has been forced to react in kind, causing its operating profit to fall by 4% last year, compared to stellar profits growth of 65% during 2013 and 124% in 2012.

“Still, the Big Four UK supermarkets could learn a lot from Aldi’s business model, which saw the Group boost sales by 30% last year, as it continues to appeal to higher value middle-class shoppers. Going against the status quo with limited stock keeping units, strong ties with local communities and more smaller high street stores with cheaper lighting, simpler interiors and more efficient check outs, Aldi leads the way in terms of optimising its systems to save on time and money, while still keeping customers happy.

“And with new online sales channels launching in 2016, Aldi adds yet another string to its bow that will be a major worry to the likes of Ocado, Sainsbury’s and Tesco, who have so far been leading the way when it comes to home delivery.”

“But with almost half of British grocery shoppers now visiting Aldi or Lidl every month, the public still clearly loves the discounters’ limited but growing choice of products, which now include more fresh food and upmarket ranges, and their unrivalled value for money solution to the weekly shop.

About The Author

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Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor. Julie is a member of the Insolvency Practitioners Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

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