Aldi UK achieves record sales and profit

Aldi UK has posted a 40.6% rise in sales, to £3.9bn, in the year to 31st December 2012.

 

Sensational sales growth

Aldi’s 40.6% sales growth is a truly standout achievement. The performance far outstrips the growth achieved by the big four, with everybody but Sainsbury’s losing share in 2012, according to Kantar Worldpanel data. Aldi has even outperformed its closest rival, Lidl, who achieved growth of c.10%. Aldi’s sensational performance cannot be attributed to a single factor, but to a raft of successfully implemented strategic goals. These include strong, personal marketing campaigns that have highlighted both quality and value; a broader range, relevant to the Aldi shopper, that has been able to fulfil a wider range of missions; significant improvements to availability, in both its core ranges and its special buys; improved customer service; portfolio expansion into great locations; and continuous focus on cost to ensure it consistently delivered value for money.

 

Soaring profits

The discounter saw pre-tax profits more than double in the period, reaching a record £157.9m. The accounts due to be filed at Companies House today, show a 4.4% operating margin, according to The Telegraph. Such strong profit growth has been supported both by incredible sales growth and though continued focus on maintaining a low cost base and lean operations.

 

Major investment planned

As Aldi looks to maintain the positive momentum it has created in the UK, it will be investing £400m in its portfolio across 2013 and 2014. The discounter is expected to open around 100 stores as it looks to expand its reach, and make its stores accessible to more of the population.

 

Targeting the full weekly shop

Over the past few years Aldi has steadily expanded its range, introducing new products that allow it to cater more credibly for the full weekly shop. Roman Heini, joint MD at Aldi UK, said "We have always been seen as a top-up shopping destination and that has changed now. Most shoppers see us today as a weekly shopping destination". Delivered on value has also been a key factor in Aldi's success. Matthew Barnes, joint MD to at Aldi UK, said "We have done everything we can to shield customers [from commodity price increases]. Our price discount on things like fresh meat has grown significantly in the past year, because we have not passed on anything like the costs [others have done]


Source: IGD, 30th Sept 2013.