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Spain: Aldi has positioned itselves as a discount supermarket, responsible and close to the client

Updated: Oct 12, 2022

Discount Retail Chain Aldi Spain (German family owned) is one of the main actors in the Spanish retail sector that continues to grow at a good pace. To know the lines of its strategy, we talk with its CEO in Spain, Valentín Lumbreras.

What market positioning currently shows Aldi in Spain?

We grew in the Spanish retail distribution, with a marketshare of 1.4%. Our goal is to continue growing and reach the largest number of stores with a relevant proposal for the client. We offer a comfortable and simple purchase, with own private label brand products (86% of the assortment), Spanish product (80% of the offer that the customer can find in Aldi are products bought from Spanish suppliers), high quality level, the best possible price and favoring that customers can make a purchase with quiet consciousness. This approach is positioning Aldi as a discount supermarket, responsible and close to the client. And more than 6 million customers already trust Aldi to make family purchase (according to Kantar Worldpanel).

How do you plan to continue growing in the coming years in our country?

Putting the client at the center of our activity. On the one hand, we will grow in number of stores to be closer to the client: more than 40 new stores for 2022 (similar objective for 2023). On the other hand, we work to demonstrate daily that Aldi is a good option to make the complete purchase for the home: quality, good price and a simple, responsible and satisfactory purchase experience.

This year they have arrived for the first time to the Canary Islands, how do you value the reception received?

We have inaugurated 1 distribution center and 7 supermarkets on the islands, with a forecast to continue growing. And we are very excited about the good reception Aldi has had. According to Kantar Worldpanel data, 15% of the Canaries have already bought in an Aldi supermarket in the Canary Islands during these first weeks. Our goal is now to continue convincing the customer with our offer, the quality-price ratio of our products, a satisfactory purchase experience and become its confidence supermarket to make a usual purchase.

What is the recipe for Aldi's success in Spain, with such a competitive market and with a very high offer?

The success of our discount model in Spain is based on four factors: low prices in quality products, a responsible approach to the environment and with people, the will to support customers favoring a simple purchase, and have a team professional and very demanding. Thanks to these ingredients, we have achieved that 1 in 3 Spaniards have bought in Aldi for 2021, and we know that maintaining their trust will allow us to continue expanding our market share.

We are in a complex context where the price is, more and more, a determining factor in the purchase decision. How does Aldi face this challenge?

Aldi's commitment to quality and low prices remains unchanged. In this context, we are making the greatest efforts so that the increase in costs affects the minimum as possible to the customer, without the quality of the product and always respecting the entire value chain. The effort to contain prices throughout the assortment is complemented by a series of promotions in basic products of the purchase basket and other favorite items of Aldi customers that allow them to find basic products (among these, the frescoes) at the price at lower in the market. In this way, every week our customers can make a purchase of basic products at the lowest possible price, quality and for the whole family. The most recent data indicate that we are one of the great tabs of the distribution that, since April, greater pricing containment has maintained, with price increases below the sector average.

Most of its assortment comes from local producers, what kind of relationship do they establish with suppliers in Spain?

Part of our assortment is made up of products elaborated and cultivated in Spain, by more than 400 Spanish suppliers with which we establish lasting and trustworthy relationships to develop our own brand products. Next to them, we work to ensure that the customer can make a complete purchase, of basic quality products, at the lowest possible prices every day, in addition to offering attractive offers.

Growth in our market is also accompanied by job creation. What are Aldi's plans in this area for the coming years?

In the last 3 years, the Aldi team has increased by 54%, until more than 6,000 professionals are. We have the commitment to continue generating employment in a sustained way, supporting the expected growth for the coming years. To do this, we are reinforcing the formation of our teams, ensuring internal talent and current and future employability of our teams, as well as working on a competitive value proposal. We want to guarantee quality and relevant work for our teams and for potential workers, who will ensure the necessary talent to remain relevant to the Spanish consumer.

What were Aldi's results in Spain in 2021 and how to anticipate 2022?

The first years have been marked by a strong investment for the implementation, growth and consolidation in the territory. In 2021 we grew in number of stores, in number of workers, in market share and in penetration in Spanish homes and we close exercise fulfilling our business goals and a growth. By 2022 and for the next few years, we maintain the commitment to continue investing and growing to be closer to Spanish homes every day with a competitive proposal.

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