NEWS
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ldi has vowed to invest £1 billion in expanding its store estate within the M25 over the next two years, after posting record financial results. Aldi posted an 11% increase in sales to £11.3 billion in the year.
growing UK grocer according to new market share data for the sector. The latest Kantar Worldpanel figures show that Ocado was the only grocer to have recorded double-digit growth with a 12.6% sales uptick.
However, the online grocer’s market share was still the smallest compared to its bigger rivals. Lidl was the next fastest-growing grocer, growing by 7.7% to give the discounter a record total market share of 5.9%.
However, its profits before tax fell 18% to £182.2 million due to ongoing investments in its infrastructure and promotional pricing.
Aldi now plans to expand its store presence in greater London, or within the M25, from 45 stores to 100 stores by the end of 2025. The grocer also plans to open a further 100 stores across the UK over the next two years. The stores will be a mix of standard sized stores and its smaller ‘local’ stores.
Stores in Blackheath, Watford and Sydenham have been confirmed. Aldi’s UK and Ireland chief executive, Giles Hurley, said: “Whilst our expansion will continue to reach every part of the UK, we’re increasing our focus on London, where our market share is just 3.4%, compared to 8.1% nationally.” “The commitment we have made to our customers to continue investing in the UK over the coming years remains as strong as ever.”
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cado has notched a double- digit rise in grocery sales, making it the fastest-
6 October 2019
Meanwhile, all of the Big 4 giants – Asda, Morrisons, Sainsbury’s and Tesco – saw a dip in sales and a reduction in market share during the period.
Overall, supermarkets failed to beat last year’s bumper summer, with grocery sales flat during the 12 weeks to August 11 compared to the same period last year.
subscription option and pay £3.99 per month for unlimited deliveries, but Amazon aims to cater to more occasional and first-time users through adding this more flexible option.
With AmazonFresh, Prime members can have grocery items, as well as electronics, flowers, pet supplies, toys, and health and beauty products, delivered in one hour slots including same-day delivery.
The products are available from Whole Foods Market, Booths and Morrisons, as well as local brands. In the UK, the service is now available in 302 postcodes across Greater London and the South East.
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Fraser McKevitt, Kantar’s head of retail insight, said: “The memory of last year still looms large for retailers and this summer’s comparatively poor weather, combined with low levels of like-for-like price rises, have made growth hard to find for retailers.”
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mazon Prime members in eligible areas are now able to use AmazonFresh by paying £2.99 per delivery, with a minimum order value of £40. Members are still able to choose the monthly
cColl’s has blamed poor summer weather and uncertainty around Brexit for a fall in sales in its third quarter, but said its full-year results will still be in line with expectations. For the 13 week period ending 25 August, the convenience retailer saw like-for-like sales fall by 2.2% while total sales dropped by 3.6%. This means that for the year to date, like-for-like sales are down 0.1% and down 1.2% on a total basis, when stores closed during the year are taken into account. Despite this, McColl’s said it has made further progress on 2019 strategic priorities around stabilising the business and operational execution, and expects results for the full-year to be in line with expectations.
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idl has warned British suppliers that they will encounter rising costs as a result of a no-deal
Brexit.
Meanwhile, two suppliers have confirmed receiving Lidl’s call for suppliers to cover the expected costs, he Sunday Times reported. One supplier said: “Lidl obviously believes we will reach that situation, and what it is saying is it wants us to pay the duty.”
The other said he expects Lidl to “take us to the precipice and threaten to delist our products” during negotiations on costs. Newly-appointed Prime Minster, Boris Johnson, said he does not want to impose tariffs on imports, but the government will not be able to control tariffs on exports in the event of no-deal.
Exports to the EU would face an average tariff of 45% on dairy products, 18% on meat and 12% on fruit and vegetables, in the case of a no-deal Brexit.
Suppliers to Irish supermarkets are understood to be rearranging freight routes to bypass the UK in order to avoid rising costs.
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The German discounter wrote to suppliers last week asking for their confirmation that they would be “deliver duty paid-ready” as the UK looks to crash out of the EU this October.
Lidl’s transportation of goods to and from the EU would suffer from tariffs under World Trade Organisation rules, as a result of a no-deal Brexit.
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