Aldi unveils plans for 70 new United Kingdom stores

Aldi unveils plans for 70 new United Kingdom stores”

German budget grocer Aldi's quest for United Kingdom domination continues as its sales growth picked up in the United Kingdom, though profits dipped in its full-year results.

Aldi and fellow German chain Lidl have led the wave of price-cutting in recent years that has driven down the margins of the likes of Tesco PLC (LON:TSCO), J Sainsbury plc (LON:SBRY), Asda and WM Morrisons PLC (LON:MRW).

With the traditional supermarkets chopping down prices, Aldi has been forced to do the same in order to maintain its value proposition.

However, operating profit was down 17% to £211.3m as Aldi invested over £450m of capital expenditure opening new stores and improving its distribution centres in the United Kingdom and Ireland.

Aldi, which has 726 stores across the United Kingdom, said its sales growth was driven by more than one million new customers switching to the supermarket during 2016.

The supermarket is the UK's fifth largest, holding a 6.9 per cent share of the market.

For the year to December 31 2016 the British arm of the German discount supermarket Aldi Sud made an operating profit of 211.3 million pounds ($286.2 million), down from 255.6 million pounds in 2015.

The company said a further 150 stores would open next year under its "Project Fresh" initiative - a £300m investment programme to create more space for fresh, chilled and food-to-go ranges as well as simpler layouts, improved fixtures and wider aisles.

The strong performance looks to have continued into 2017, with Aldi noting that like-for-like sales were "strongly positive" in 2016 and had accelerated this year.

Matthew Barnes, chief executive for Aldi UK and Ireland, said: "Our growth is accelerating, thanks to the hundreds of thousands of new customers switching their shop to Aldi".

Aldi said that its future capital expenditure plans remained unaffected by the UK's decision to leave the European Union and expects investment in 2017 to total £459m.

Like this


25 September 2017
Philip Morris International Inc (NYSE:PM) Stake Lessened by Beacon Financial Group
Wells Fargo & Co reissued an "outperform" rating on shares of Philip Morris International in a research note on Friday, June 9th. Klingman & Associates LLC grew its stake in Philip Morris International by 1.1% in the 1st quarter. (NYSE:PM) for 4,637 shares.

25 September 2017
Adobe Systems Incorporated (NASDAQ:ADBE) Holdings Raised by Twin Capital Management Inc
Park Avenue Securities Ltd Liability Corporation has invested 0.04% of its portfolio in Adobe Systems Incorporated (NASDAQ:ADBE). Adobe Systems makes up 0.7% of Twin Capital Management Inc.'s investment portfolio, making the stock its 28th largest holding.

25 September 2017
The lead singer of soul Charles Bradley died of a cancer
Among his TV appearances was a stop past year on " CBS This Morning: Saturday ", which earned him an Emmy nomination. He released his first single, Take It As It Come parts one and two, in 2002.

25 September 2017
I will always have 'special affection' for Chelsea - Diego Costa
Morata is very good in the box and scores a lot of goals with his head. "We wish him all the best for the future", Conte said.

25 September 2017
Iran test-fires new ballistic missile defying United States warnings
Iran has insisted the missiles are not created to carry nuclear weapons and is not in violation of the resolution. The missile was unveiled during a military parade in Tehran that commemorated the 1980s Iraq-Iran war on Friday.

25 September 2017
Von Miller Flagged for Pretending to Help Tyrod Taylor
Against Denver, it was on his shoulders to utilize the stout defensive play and put his team in scoring position. Despite not having a run over 20 yards, Taylor has managed to convert five first downs with his legs already.

25 September 2017
North Korea's Kim Jong-Un Calls Donald Trump A 'Dotard'
Ri did not respond when asked by reporters whether North Korea had conducted a new nuclear test. Trump called it "a lucky word'".

25 September 2017
Titans RB Murray active vs. Seahawks
The Titans' head-to-head win over the rival Jacksonville Jaguars gives them the tiebreaker atop the division. The Chiefs (3-0) beat the Chargers for the seventh straight time and have won 12 straight AFC West games.

25 September 2017
Pilot killed as jet crashes during Italian air show
An Italian Air Force pilot is dead after his Typhoon fighter crashed in the ocean during an air show near Rome on Sunday. The remains of the 36-year-old pilot were recovered 90 minutes after the crash.

25 September 2017
Confirmed! Hrithik Roshan Will Be In Super 30
He says, "I can totally trust Vikas Bahl with my life's story as I feel he can put out my story in the best way possible". He provided them with study materials and lodging for a year, while his mother, Jayanti Devi, cooked meals for them.