Last updated December 17th 2022
Aldi
German-owned Aldi ranks as Britain’s fourth largest supermarket chain with a market share of 9.3% and with a total of over 970 stores which was set to reach around 986 by the end of 2022.
Aldi Stores is a UK subsidiary of Hofer KG, an Austrian partnership.
Aldi has benefitted as hard-pressed consumers look for savings and in the 12 weeks to September 2022, it had attracted an additional 1.5 million extra customers. Through expansion, its plans involved the creation of over 6000 jobs nationwide in 2022 adding to its existing workforce of over 43,000. The group also operates 11 regional distribution centres where it has been recruiting for staff in 2022.
The group is a major investor in its building stock. During 2021, it invested some £507 million in tangible fixed assets to enhance and expand its store and distribution network and opened 52 new stores in the UK and Ireland during the year.
Financials
To see the latest financial results for Aldi Stores Ltd. go to Companies House and use company ID number 02321869
Aldi Stores latest results for 2021 point to a year of solid progress as the group recovers from the impact of Covid restrictions. Turnover in the year to December 2021 rose by 1% to £13.65 billion although the heavy cost of the pandemic – which involved heavy spending to keep prices low and on staffing and remuneration – was reflected in a fall in operating profit to £60.2 million from £287.7 million previously. Pre-tax profit fell to £35.7 million from £264.8 million whilst profit after tax fell to £5 million from £202 million. The group ended the year with cash at bank of £103.1 million, down from £110.7 million previously.
Operations
Today, Aldi is seeking to open new stores in various UK cities, including Bath and Birmingham and smaller towns such as Penzance and Maidenhead. The chain is also on the lookout for town-centre or edge-of-centre sites, ideally with space for a 20,000 sq ft store with around 100 parking spaces.
Aldi is also planning to build new and expanded distribution centres, including its facilities in Bedford and Leicestershire.
In late 2022, the group highlighted various areas which it is targeting for national growth which included: in the South East (Caversham, Farnham, Maidenhead and Worthing); South West (Bath, Teignmouth and Penzance); West Midlands (Birmingham, Coventry and Warwick); East Midlands (Chesterfield, Leicester and Derby); East of England ( Cheshunt, Brentwood and Rayleigh); North West ( Warrington, West Didsbury and Formby); North East (Newcastle upon Tyne and Sunderland); Yorkshire (Harrogate, Otley and York); Scotland (Cathcart, Bonnyrigg and Ladysmill) and Wales (Barry and Chepstow).
In autumn 2022, Aldi opened what it described as an ‘eco concept store’ in Royal Leamington Spa, designed to cut carbon consumption with various features which it may roll out to other stores. It uses sustainable building materials and design changes to reduce life-cycle carbon emissions.
Meanwhile, the group opened its first ”checkout-free” store in Greenwich in south east London early in 2022.
Glenigan data
The retailer’s significance as a construction industry client is reflected in Glenigan data showing Aldi ranked as the 25th largest client of the construction industry in the year to September 2022, with 79 major projects worth a total of £251.6 million. Glenigan data also gives details on the group’s ambitious store-opening programme. For example detailed plans have been granted for a new £2.9 million Aldi store in Goole in Humberside at the Rawcliffe Road Development, where work is set to start in spring 2023 and run for seven months (Project ID: 21327858).
Conclusion: well-placed for tougher economic times
Aldi looks well-placed to benefit from tougher economic times as the growing pressure on household budgets prompts consumers to get the best value from their supermarket shop. The group”s ambitions to grow its store network geographically should ensure it remains one of the promising clients for the industry in an otherwise largely quiet retail sector. Meanwhile, Aldi”s investment in new initiatives such as its checkout free stores and in updating and maintaining its store network means it should continue to be a significant source of smaller projects for the industry.
How to win work with Aldi
A page on the group”s website here aldi.co.uk/suppliers/becoming-a-supplier gives details for businesses interested in working with the group. It provides a downloadable ”suppliers pack” and background on working with Aldi and becoming a supplier.
Meanwhile, a separate section on the website https://www.aldi.co.uk/about-aldi/property gives background on the group”s approach to its property portfolio and a guide to its store expansion strategy.
Key contacts
Jessica Lee, National Supply Chain Management Director at Aldi UK
Email: jessica.lee@aldi.co.uk
Telephone : 0800 042 0800
Lizzy Prescott, National Supply Chain Manager Aldi UK
Email: lizzy.prescott@aldi.co.uk
Telephone : 0800 042 0800