29 September 2014 – the rise and rise of discount supermarket Aldi

There is coverage today in the UK Guardian of German discount supermarket Aldi’s quest for an even larger chunk of the UK market. As shoppers continue to suffer from austerity cuts and stagnant wages, Aldi’s mantra is to keep the ‘big four’ at arms length by maintaining the gap in competitive pricing – they want to have a minimum of a 15% basket discount – and say that in reality it is already even higher than that. With only 2,500 (mostly own-label) products (the large supermarket groups can stock up to 40,000 different products in their biggest stores), the discount chain keeps costs low by buying huge amounts and using product packaging tailored to maximise the use of space in its 600 stores. The article notes that Aldi’s success in the UK is very recent and puts this down to not only the economic downturn but also to the company’s efforts to broaden its appeal. This includes an increased range of fresh fruit and vegetables, more meat sourced in Britain, and more expensive items, like fine wines, to attract middle class shoppers. You can read the full article here

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