Aldi UK has revealed that the discount supermarket has ‘big plans’ to extend its existing click and collect initiative in 2023.
Aldi is gearing up for its biggest Christmas on record, as the cost-of-living crisis has prompted shoppers to switch to cheaper discount supermarkets, says Giles Hurley, CEO.
In September, the German discounter overtook Morrisons to be crowned the UK’s fourth biggest supermarket, which then welcomed an additional 1.65 million customers in the 12 weeks leading up to 2 October. In January, Aldi ditched Deliveroo deliveries and is now concentrating on its own click-and-collect service, which is currently running in 200 of its UK stores.
Hurley says “watch this space” when it comes to rolling out click and collect further.
“Online grocery spending might have slowed, but it’s still 11% of the food market, it’s still going to be important,” he said.
Hurley believes that Aldi’s success is largely down to its smaller stores and grocery ranges, as while 90% of what it sells is own-brand, it can generally sell groceries for less. “We might be in the ‘Big Four’, but we will never be part of that club, we’re focused on our model,” he said. “We are committed to not being beaten on price.”
The discounter, which will have 980 stores by the end of this year, has fallen short of its target of having 1,000 stores by the end of 2022. Hurley blames the delay on lockdowns, labour shortages, planning red tape and interference from rivals, rather than a lack of ambition. “We can take a long-term view and we believe long-term profitability is linked to growth and scale,” he added. “Our market share and growth is very much determined by us having the lowest food prices in the UK.”
As Aldi gained more of the UK market share amid the cost-of-living crisis, Tesco and Sainsbury’s launched price-matching schemes in a bid to compete with the lower prices.
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