Aldi to expand its London market share followed by surging sales
By Akshay Kedari  Date: 2019-09-17

Aldi to expand its London market share followed by surging sales

Discount stores have taken the retail industry by storm, with more people favoring them over traditional supermarkets. In the past couple of years, discount supermarkets have witnessed rising sales. Moreover, leading players like Walmart and 7-eleven are currently dominating the market. 

German discount supermarket chain, Aldi is one such firm that has recently made headlines following its announced plans to double the firm’s London store count to over 100. According to Aldi’s CEO, Giles Hurley, the company plans on opening Aldi local stores, which could stock around 1,500 products and would be around half the size of its traditional stores.

He claims that the company has observed numerous appeals for opening Aldi superstores in London, which seemingly validates a substantial growth potential for the firm in the capital. As per the company, it intends to build 100 more stores around the UK within 2021, which might create up to 5,000 jobs.

Reportedly, the supermarket had revealed its sales figures that recorded a rise of 11% in 2018, reaching at £11.3 billion. However, operating profits experienced a downfall by 26% to £198 million which was recovered by the costs of the chain’s determined expansion.

According to Hurley, the supermarket would add about 50 new stores per year, stating that the dip in profits was not solely due to its spending on infrastructure, that amounted to £531 million. He states that, while the company would continue with its expansion in the UK, the company is specifically concentrating on London, where its market share is only 3.4%

For the record, Aldi is the fifth-largest supermarket chain in the UK, following Asda, Tesco, Morrisons and Sainsbury’s, and has managed to accommodate 800,000 new customers in its store in 2018. Reportedly, Asda has showed a rise of 3.2% in sales to £22.9 billion and an estimated rise of 13% in pre-tax profits to £804.9 million.

The company claims that sales at its established stores were up 1.6% for the year as it had improved availability and cut prices on its fresh foods.

Source Credit: https://news.yahoo.com/aldi-plans-massive-london-expansion-as-sales-soar-080031598.html

About Author

Akshay Kedari    

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

UV Angel ties up with Smile One Services, launches new dental products
UV Angel ties up with Smile One Services, launches new dental products
By Akshay Kedari

UV Angel, a company renowned in the field of pathogen control technology, has recently announced that it has partnered with Smile One Services, which is dental service organization (DSO)  based in Michigan. Reportedly, the partnership has been i...

LinkedIn Audience Network prefers IAS to offer native ad brand safety
LinkedIn Audience Network prefers IAS to offer native ad brand safety
By Akshay Kedari

Integral Ad Science (IAS), a renowned leader in digital ad verification, has recently announced its agreement with the LinkedIn Audience Network to offer brand safety to native ads on mobile, web, in-app and desktop. The integration tends to utilize ...

SaalexIT acquires Oregon-based Arctic MSP for an undisclosed amount
SaalexIT acquires Oregon-based Arctic MSP for an undisclosed amount
By Akshay Kedari

SaalexIT, a full-service IT company and a market-leading MSSP (Managed Security Service Provider), has reportedly announced its acquisition of Oregon-based Arctic MSP. It is to be noted that the financial terms are yet to be released. The acquisitio...

Virgin Orbit prepares for its first launch mission into the orbit
Virgin Orbit prepares for its first launch mission into the orbit
By Akshay Kedari

Virgin Orbit had recently announced that its LauncherOne air-launched vehicle shall be marking its first flight in the coming days. The company has, however, set modest expectations regarding the probability of success. The company has commented tha...

Cognosante inks acquisition of EIS to expand Federal market offerings
Cognosante inks acquisition of EIS to expand Federal market offerings
By Akshay Kedari

Cognosante, a business process and technology solutions provider, has reportedly announced the acquisition of Vienna-based Enterprise Information Services, LLC. The acquisition of EIS will serve as a growth strategy of the company for expanding its o...