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  5. Aldi launches £550m expansion after falling market share

Бизнес

Aldi launches £550m expansion after falling market share

Aldi chief Giles Hurley says there are «still areas of the country that don't have an Aldi.» Photo: Andrew Fox

Aldi has embarked on a £550m expansion to attract new shoppers to the discount grocery store after its market share fell.

The supermarket aims to eventually open more 500 stores. — is increasing the size of its estate by 50% — and is looking at both city center properties and larger sites on the outskirts of cities in an attempt to wrest customers away from rivals.

Aldi's market share has fallen in recent years over the past few months, after significant increases during the cost of living crisis.

Aldi and fellow discounter Lidl have taken over traditional supermarkets since the financial crisis. In September 2022, Aldi overtook Morrisons to become the fourth largest supermarket in the UK.

However, Aldi's share of UK grocery sales has fallen from a peak of 10.2% in September 2023 to 9.3% in January, according to Kantar.

Although Aldi's share has fallen since September, Tesco and Sainsbury's have increased their market share after cutting prices and partnering with Aldi on hundreds of products to maintain customer loyalty.

Despite this, Aldi had its best Christmas sales of the period. In January, the discounter said revenue would rise 8% to £1.8bn in the four weeks leading up to Christmas Eve.

Aldi said its expansion push would create more than 1,500 new jobs in 2024, as she plans. areas of the country where it is currently less at risk.

Giles Hurley, chief executive of Aldi, said: «There are areas of the country that don't have Aldi or that need more or larger stores.» to meet demand. That's what our 2024 expansion plans are focused on.”

Aldi isn't the only major grocer planning an expansion this year. Asda said it would open 110 convenience stores in February, aiming to reach a total of 1,000 stores.

Like Aldi, Asda — the UK's third-largest grocery store — has begun opening new stores around the world. in regions where the company has traditionally had a smaller presence, such as the south of England, as it seeks to catch up with Sainsbury's, its second largest.

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