SUPERMARKET chain Aldi has announced a £300 million investment in its UK stores on the back of record turnover as profits were hit by competitive pricing.
Aldi has raised the stakes in its battle with the so-called ‘big four’ supermarkets with a plan to deliver a new shopping experience across its estate, which it says will “enhance shopper experience and showcase quality.”
Aldi currently has 67 Scottish stores and employs 2,717 staff north of the Border.
Sales in the UK and Ireland jumped 12 per cent to reach £7.7 billion in 2015, meaning the company has doubled its UK sales since 2012. In 2015, overall grocery sales grew 0.4 per cent.
However, operating profits fell 1.8 per cent to £255.6m, which Aldi said reflected its continued investment in prices.
Aldi, and fellow-German rival Lidl, have sharply increase their share of the grocery market in recent years with a focus on low prices.
Recent figures from Kantar Worldpanel show these ‘discounter’ chains have a combined market share of almost ten per cent, closing in on Morrisons’ 10.7 per cent.
Aldi, which alone accounts for 5.6 per cent of the grocery market, said it expected more than 100 stores to be refurbished in 2017 with elements already being introduced into new stores this year.
It added that it would open 70 new stores in the UK during 2017 – adding to its existing 659-strong portfolio - as part of its plan to reach 1,000 by 2022.
The company did not provide a breakdown of how much of this investment would be in Scotland.
Matthew Barnes, chief executive – Aldi UK and Ireland, said: “We’ve completed our largest-ever customer listening exercise, involving over 50,000 shoppers… The overwhelming message was clear: our customers love the quality of our products, our commitment to low prices and the efficiency of our stores, but they want to shop our fresh produce, fresh meat and fish, food-to-go and award-winning wines more easily.”
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