Aldi’s Expansion Plan

Posted on 18 September, 2019 by admin

Good news for commercial property landlords and landowners as Aldi maybe looking to expand in your area.

An ambitious plan has been put forward today by Aldi’s boss, Giles Hurley. The company is planning to open a new store in the UK every week on average for the next two years.

In order to achieve its goal, the discount supermarket chain will be looking to invest £1 billion.

ALDI Source Wikimedia Commons

Mr Hurley believes that the company is not maximizing the market opportunity as it has been reported that almost 50% of the British population do not shop at the retail store.

“…The main reason for that is they don’t have a store near us,” said the Aldi boss.

The pledge comes has profits fall last year even though the company reported a rise in sales.

In 2018, Aldi attracted more than 800,00 new customers, adding an extra £1.1 billion in sales, up 11% on the previous year. The growth was generated by additional stores opening.

The fall in profits was partly due to the company keeping its competitive edge by cutting store items.

Aldi is still expanding whilst the big established supermarket chains have rained in their rate of expansion, allowing the company to gain customers and increase their market share, which is set to continue.

“Over the next two years we’re going to invest a further billion pounds in the UK and that shows our intent,” said Mr Hurley.

Part of the expansion plan is to increase stores in the capital, London. Now the company only has 45 stores inside the M25, by the end of 2025, Aldi’s aim is to increase that to 100.

Mr Hurley said, “Within Greater London, our market share is around half of what it is in the rest of the country so there’s clearly a big opportunity for us to expand the business. In the long term, we can comfortably see us opening 200-250 stores within London.”

However, with Aldi’s current low-cost business model it may not be as straightforward.

For one London will prove tricky, as its harder to find good locations with parking spaces.

“So, you have to have a very flexible model and Aldi is so formulaic as discounter that this is harder to manage,” says Adam Leyland, editor of the Grocer Magazine.

Related Posts

Comments are closed.

Recent Posts

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme