Aldi | Verdict Company Briefing
Report description
Aldi offers a limited range of food & grocery and non-food items at low prices thanks to its bulk buying policy. On entry to the UK in 1990 Aldi gained a perception of being a value-end store with unknown brands. Since the downturn, it increased market share and penetration among AB shoppers who appreciate its value for money and high standards in basic products.
- Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for Aldi
- Plan your expansion strategy by understanding how and where Aldi has increased its store portfolio, and the impact this has had on densities
- As a planner, assess the viability of an Aldi store by examining its sales densities, and understanding its expansion plans
Already in 2012, Aldi has picked up 133 product awards from associations and magazines such as Which?, The Grocer, Good Housekeeping and the Decanter World Wine Awards. This performance is reflected in Aldi's position as second for quality in Verdict's Consumer Satisfaction Awards 2012 among food & grocery retailers
In July 2012 Aldi said it would create 3,000 jobs in 12 months as it continues to expand its portfolio. Recruits will include 100 new members of its graduate recruitment scheme. The retailer has an ambitious target of 100 new openings per year, but has not yet managed to fulfil this.
Main user share among food & grocery shoppers doubled since 2007. While it remains low, even to maintain against fierce competition from the grocers is impressive – to see growth is more so. More importantly since a sharp rise of in visitor share in 2008, Aldi has broadly maintained an elevated level of visitor share between 2008 and 2011
- How will Aldi's food & grocery sales grow in 2013, and what impact will this have on market share
- What are Aldi's plans for expansion over the coming years, and how will this contribute to sales growth
Table of contents
Introduction
Summary
Product quality is key, but needs to be communicated;
Expansion of the estate and product range development are priorities;
Maintains elevated visitor share;
Sales growth to continue in spite of economy moving out of downtown;
Food & grocery sales improve as more use Aldi for full shop, thanks to product quality;
Sales densities improve;
Market share continues to rise amid aggressive competition;
Has worked hard on product, and must now shout about it.
ALDI
Product quality is key, but needs to be communicated
Verdict outlook
Has worked hard on product, and must now shout about it
Recent key events
Expansion and range development are priorities
Proposition and customer penetration & share
Maintains elevated visitor penetration
Financials
Sales growth set to continue as expansion picks up
Operating profit recovers
Margins will remain low
Sector performance – food & grocery
Food & grocery sales improve as more use Aldi for full shop
Market shares
Market share continues to rise amid aggressive competition
Space
Sales densities improve thanks to product quality
METHODOLOGY
Verdict company briefing
Financial information
Market size calculation
Sales density calculation
Further reading
Ask the analyst
Disclaimer
TABLES
Table: Aldi company information 2012
Table: Aldi retail proposition 2012
Table: Aldi key operating statistics 2008–13
Table: Aldi trading record 2003–13e
Table: Aldi UK store profile 2003–13e
Table: Aldi space allocation 2010–12
Table: Aldi space allocation 2010–12
FIGURES
Figure: Aldi fascia 2012
Figure: Aldi advertising campaign 2012
Figure: Advert highlighting Aldi's low prices vs Tesco's Big Price Drop 2012
Figure: Aldi product awards 2012
Figure: Aldi Australia Has no… ranges 2012
Figure: Aldi Everyday Essentials and Specially Selected products 2012
Figure: Aldi visitor penetration and main user share 2007–11
Figure: Increase in main users at Aldi 2006–11
Figure: Aldi UK sales and y-o-y change to December 2008–13e
Figure: Aldi UK operating profit to December 2006 – 11
Figure: Aldi food & grocery sales for calendar years incl VAT 2008e–13e
Figure: Aldi food & grocery sales per sq ft for calendar years ex VAT 2008e–13e
Figure: Aldi share of market held by food & grocery retailers 2008–13e
Figure: Aldi share of market for food & grocery products 2008–13e
Figure: Aldi space allocation changes 2010–12
Figure: Aldi space allocation percentage point change 2010–12
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