Aldi announces record 65% jump in profits as it attracts 1m new customers
Aldi, the German hard discount chain, has returned record sales in the UK with profits up 65% and the promise of even more price cuts that are acting as a wrecking ball through the figures of the major multiples.
Aldi, the German hard discount chain, has returned record sales in the UK with profits up 65% and the promise of even more price cuts that are acting as a wrecking ball through the figures of the major multiples.
Sales across Aldi are up 36% to £5.3bn for the last year of trading and it has announced it is to cut prices even deeper as it responds to the heavy promotional campaigns of the major supermarkets. The chain is also importantly returning industry leading profit figures on the back of its hard discounted prices with pre-tax profits up by nearly two-thirds to £261m.
Matthew Barnes, Aldi's joint UK managing director, sent out this warning to its high street retail competition: "Whatever our competitors plan to do, we know exactly what our response will be and our competitors do as well. We will not let them compete on price. We will not let them close the gap."
He said its target is to "have a minimum 15% basket discount" compared to the UK's major retailers" and the gap is often wider than that. Roman Heini, joint managing director: "Our competitors have mentioned the need to close the gap on Aldi, but we are clear that we will maintain that price gap and are determined to do so."
If anything the major pricing discounts announced by Morrisons and Tesco in recent weeks had only helped make them aware of the deals available at Aldi. "Price cuts have encouraged consumers to think more about what supermarkets charge," said Barnes.
The chain claims to have attracted 1 million extra customer to its stores in the last year.
It hopes to have a network of 600 stores across the UK by the end of 2015, adding 54 in 2014 and 65 next year.
Its goal is to have 1,000 stores by 2021.
It has also announced it will start to allow customers to use credit cards in its stores following feedback from shoppers.
"It is another potential barrier to shopping at Aldi that we are smashing down," said Barnes.
Keywords:
Search
56-58 Church Walk, Burgess Hill, West Sussex, RH15 9AN
Registered in England No. 6646125. VAT No. 938 4452 95
