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ONE MILLION NEW CUSTOMERS DRIVE RECORD SALES FOR ALDI
02 Oct 2018


 
  2017 2016 Change
Sales £10.181bn £8.744bn +16.4%
Gross profit £417.3m £324.5m +29%
Operating profit £265.9m £211.3m +26%
Number of customers 15.8m 14.7m +1.1m
 
 
  • Growth accelerates with UK and Ireland sales up 16.4% (2016: 13.5%) to a record £10.2bn – equivalent to an extra £100m of sales every month
  • Fastest growing market share as 1.1m British shoppers swap to Aldi
  • 130 new stores planned over next two years, alongside major investment in new and existing regional distribution centres
  • Investment to create 5,000 new jobs over next two years
  • Plans to attract more British suppliers
 
Aldi, the UK’s lowest-priced supermarket*, has announced record results for its last financial year, with sales continuing to increase in 2018 as growing numbers of British shoppers switch from the Big Four.
 
Sales in the UK and Ireland rose 16.4% to £10.2bn in the year to 31st December 2017 (2016: £8.8bn) – a higher growth rate than the previous year (13.5%) and over five times faster than the overall grocery market (3%).**
 
The supermarket – now Britain’s 5th biggest with over 775 stores – gained more market share than any other last year, attracting a further 1.1m shoppers through its doors with its unique combination of lowest prices and award-winning quality, according to Kantar Worldpanel data**. It now commands 7.6% of all UK grocery spend.***
 
The same data also showed more customers shopped more of Aldi’s range, with the average number of items bought per trip rising to over 19 – the highest in the sector**. Some of its best-performing products were its Specially Selected premium range – which now generates sales of over £1bn annually – alongside fruit and veg, fresh meat and fish, its award-winning mother and baby range and beers, wines and spirits.
 
Aldi, which was recently named supermarket of the year in The Grocer Gold Awards, said over 200 new products have been introduced this year, including its Specially Selected Aberdeen Angus Beef and Mushroom Ravioli, Oliver Cromwell Pink Gin and Moser Roth Flaked Truffles.
 
Over 30% of its range has also been reformulated to further improve product quality, including its steak and claret pie, hazelnut chocolate spread, Mediterranean falafel, Chilean merlot and premium pork sausages.
 
Recent data from trade magazine The Grocer meanwhile confirmed Aldi as Britain’s lowest priced supermarket once again, with a basket of everyday items being on average 22% cheaper than the Big Four*.
 
Giles Hurley, Chief Executive Officer – Aldi UK and Ireland, said: “The revolution in British grocery shows no sign of slowing. Savvy customers know they can swap and save with Aldi, thanks to great quality products at lower prices. This is happening on a massive scale, with more than 1.1m new customers shopping with us throughout 2017.
 
“While other grocers introduced more complexity into their businesses in their struggle to win back customers, we stuck to our guns and focused on doing what Aldi does best – buying smart, staying lean, improving quality and keeping prices low. Our biggest strength is our simplicity – a carefully selected range of exclusive own-label brands and award-winning products at the lowest prices. Millions of Britons can put fantastic-tasting food on their table every day of the week, at prices they can afford.”
 
Last year Aldi announced a £1bn capex investment during 2017 and 2018 to open new stores in every part of the UK, hundreds of store upgrades and extended distribution centres. It remains firmly on course to hit this target.
 
Looking further ahead, Aldi said it would open a further 130 new stores between 2019 and 2020, while continuing to invest in its Project Fresh initiative – a £300m investment to create more in store space for fresh, chilled and food-to-go ranges as well as simpler layouts, improved fixtures and brighter, wider aisles. Over 200 existing stores will have been converted to the new format by the end of this year and a further 380 stores by the end of 2021. 
 
To fuel its expanded store network, three new Regional Distribution Centres (RDCs) are already planned for Sheppey, Sawley and Bedford in the coming years, as well as extensions to existing centres in Darlington and Bathgate. 
 
The company, which offers market-leading pay and benefits for store employees, said its planned expansion would create 5,000 new jobs over the next two years. 
 
Aldi, which already sources its entire core range of fresh meat, eggs, milk, butter and cream from British suppliers, said it had switched to 100% British on dozens of other grocery lines, including mushrooms, potatoes and seasonal spinach, bolstering its industry-leading credentials.
 
Aldi – one of only two supermarkets to sell 100% British lamb all year round – is actively looking to source even more products from Britain by expanding its UK supply base. It currently spends over £100m each week with more than 1,000 British suppliers, many of whom have worked with Aldi since the first UK store opened in 1990.
 
Aldi said it was also keen to support more British firms to grow sales with its sister operations around the world. In the last two years, it has helped dozens of suppliers to secure listings in overseas markets, including Bradford-based Seabrook crisps, which now trades with 470 Aldi stores in Australia, and Doncaster-based Sargents Bakeries, which has sold over £1m worth of its mince pies in Australia.
 
As the first retailer to sign the NFU’s Fruit and Veg Pledge, and the only one to sign its Horticultural Pledge, Aldi also signed a three-year partnership with the Prince’s Countryside Fund earlier this year as further evidence of its commitment to British farming and rural communities.
 
Giles Hurley, added: “Our future investment plans underline our continued commitment to growing responsibly in the UK. That means having a positive and lasting impact on the economies where we operate and improving the lives of British people. Our fundamental purpose remains – to bring outstanding quality groceries at the lowest prices for our customers, creating jobs and supporting British farming and manufacturing.
 
“In 2020, Aldi will have been serving British shoppers for 30 years. In that time, we’ve become part of the fabric of British life. We’re proud to be reaffirming our commitment today.”
 
ENDS
 
*              The Grocer 33 price survey, published 16 August 2018
**            Kantar Worldpanel data, 52 weeks to 31 December 2017
***          Kantar Worldpanel data, 12 weeks to 9 September 2018
 
Notes to editors:
 
Aldi is the UK’s fifth largest and fastest-growing supermarket with over 775 stores and over 30,000 employees.
 
The company has more than doubled its market share since 2010. In the 12 weeks to 9 September 2018, Aldi grew sales by 13.9% and has a 7.6% share of the market (Kantar Worldpanel data).
 
Aldi is attracting hundreds of thousands of new customers every year with its award-winning range of exclusive brands, passing low operating costs on to customers in the form of low prices.
 
In 2018 Aldi will open 70 new stores and by 2022 will operate over 1,000 stores.
 
The company’s current achievements and initiatives include:
 
•       Aldi was crowned ‘Grocer of the Year’ 2018 at the Grocer Gold Awards, which celebrate outstanding achievement and practice across the grocery sector. Judges singled out Aldi’s “market-beating growth” and its “willingness and ability to adapt to the needs of UK shoppers”.
•       Aldi has a five-year partnership with Teenage Cancer Trust – its fundraising target of £5m will go towards helping the trust to reach out to every young person with cancer in the UK.
•       Aldi launched its eCommerce platform in January 2016, selling a range of high quality wines and Specialbuys.
•       Aldi’s rates of pay are significantly higher than the Government’s National Living Wage and also above the Living Wage Foundation’s recommended national rates. Store Assistants receive a minimum hourly rate of £8.85 nationally and £10.20 in London.
•       Aldi is the official supermarket partner of Team GB and ensures every member of the team has access to fresh healthy Aldi food via monthly shopping vouchers, and that 1.2 million 5-14 year olds will learn about the benefits of cooking fresh, healthy food via its Get Set to Eat Fresh education initiative. Aldi has been a partner since 2015 and extended its commitment to the 2020 Tokyo Olympic Games.
•       Aldi is the lowest priced supermarket in the UK (The Grocer 33, published 16 August 2018).
•       In 2018, for the fifth consecutive year Aldi was ranked the best-performing supermarket for compliance with the Groceries Supply Code of Practice, underlining its commitment to maintaining fair, predictable and sustainable prices within its supply chain.
•       Research from the Centre for economics and business research (Cebr) showed that the value of Aldi’s relationships with UK suppliers will increase by £2.2bn during the next five years to £6.7bn in 2022. Additionally, in 2016 Aldi supported 146,000 direct and indirect jobs in the UK and this figure is set to rise to 205,000 by 2022.  
 
Full details of Aldi’s awards and achievements are detailed at https://www.aldi.co.uk/awards.
View our 'Notes to Editor'