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     aeresearch.net

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

Mark Zuckerberg planning to rebrand Facebook to reflect metaverse focus

Mark Zuckerberg planning to rebrand Facebook to reflect metaverse focus

By Akshay Kedari

There have been many businesses that have rebranded themselves to alter their identity with time. Following the league, social networking giant Facebook is also reportedly planning to rebrand the firm with a new name. On October 28, Chief Executive ...

Formula One teams to test second-generation biofuel during 2022 season

Formula One teams to test second-generation biofuel during 2022 season

By Akshay Kedari

The leading motorsport intends to achieve net-zero carbon status by the end of this decade. F1 has ruled out switching to an all-electric powertrain such as in Formula E. With increasing significance towards green mobility, Formula One teams are...

Apple’s iPhone 13 production may take a hit due to global chip shortage

Apple’s iPhone 13 production may take a hit due to global chip shortage

By Akshay Kedari

Apple Inc. is likely to cut down production of its iPhone 13 model by approximately 10 million units on account of the global chip shortage. The American multinational technology company was previously expected to manufacture 90 million units of the ...

Israel's GoTo Global acquires German e-moped sharing platform emmy

Israel's GoTo Global acquires German e-moped sharing platform emmy

By Akshay Kedari

Israel-based multimodal vehicle sharing services provider GoTo Global Mobility Ltd. has reportedly acquired Germany’s shared e-scooter company emmy. The acquisition will allow GoTo Global to enter the German market as well as accelerate its Eur...

German airline Lufthansa adds four new planes to its A350 fleet

German airline Lufthansa adds four new planes to its A350 fleet

By Akshay Kedari

Deutsche Lufthansa AG recently revealed that it has agreed to take four new Airbus A350-900 long-haul passenger aircraft on lease, utilizing newer planes that are left grounded as airlines reorganize their balance sheets in the wake of the ...