Shoppers help Aldi turn to profit

Grocer Aldi said its British business swung to a profit in 2011 on a 29 per cent rise in turnover as its discount offer found favour with cash-strapped consumers.
By The Newsroom
Published 2nd Oct 2012, 07:00 BST

The privately-owned German retailer, which has a UK grocery market share of just over 4 per cent, said it was tracking similar growth in 2012 in terms of sales volumes, turnover and customer visits. Having opened 29 new stores in 2011 it plans to invest £181m opening 40 new stores by the end of 2013, taking its UK total to over 500 and creating 4,500 jobs in 2012.

The UK business made a profit after tax of £57.8m in 2011, having made a loss of £56m in the previous year.

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Turnover jumped to £2.76bn from £2.14bn, which the company attributed to the development of fresh meat, bakery and fruit and vegetable ranges, as well as its low price strategy.

With British household budgets being squeezed by government austerity measures and inflation running ahead of wages growth, competition among supermarkets for consumer spend is intense.

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