The head of Aldi’s UK business has insisted the German discount giant can continue to thrive even when consumer spending power returns during a recovery.
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Aldi has enjoyed buoyant sales over the last 12 to 18 months as cash-strapped UK shoppers have looked to the discounter for greater value. According to TNS Worldplanel, Aldi’s UK sales rose 11.2% in the 12 weeks to 17 May.
However, aggressive campaigns by the likes of Tesco, Asda, Sainsbury’s and Morrisons have looked to attract shoppers back to the UK’s major multiples from the discounters – and with some success.
The TNS states claim that the combined growth rate of UK discounters stood at 9.4% during the 12 weeks to 17 May – but the researchers said that growth was no longer twice of that of the major multiples.
Nevertheless, Paul Foley, managing director of Aldi UK and Ireland, said yesterday (11 June) that UK consumers will continue to look for value when the economy recovers.
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By GlobalData“Nobody likes to feel like they paid more for an item than they should have. That principle will survive irrespective of the economic climate,” Foley told the British Retail Consortium’s annual conference in London.
Foley also defended Aldi’s low-cost model, which has been criticised by some industry watchers for restricting the range and quality of goods on sale.
“Low-cost base businesses can sell products cheaper than high-cost base businesses. Normally you get a restricted range and you probably do not get as wide a service – but that’s not true of Aldi,” Foley insisted.
