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Aldi expands as profits soar

Aldi expands as profits soar

Discount supermarket Aldi plans to open up to 65 new stores next year as it continues to put pressure on the 'Big Four' grocery chains. On Monday, the German-owned retailer revealed a massive rise in pre-tax profits.

Aldi recorded UK sales of £5.3 billion for 2013, a rise of 36% on a year earlier, with pre-tax profits up 65%  at £260.9 million. In addition, Aldi's market share has risen to 4.8%.

With more than 530 outlets already in the UK, Aldi recently announced it is open a second 120,000 sq ft distribution hub in Tamworth, creating 144 jobs.

Fuelled by aggressive discounting, Aldi opened 42 new stores last year, is expected to open 54 more in 2014, and has attracted 1 million more customers, signalling a change in shopping habits that is sending traditional supermarket giants back to the drawing board. The chain is aiming to have 1,000 UK stores by 2021.

Aldi’s success is based on selling about 2,500 products, less than one-tenth of the range sold in the average British supermarket, enabling it to negotiate discounts through bulk-buying. It also works hard through the supply chain to maximise lorry space through packaging intelligence in order to keep costs low.

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