Photo by Sainbury´s – Aldi price match
UK retailer Sainsbury’s has thrown down the gauntlet by announcing it will match discounter Aldi on hundreds of popular items. The around 250 items will include both own-label and branded products and focus on a range of lines from fruit and vegetables to meat, chicken and dairy. The initiative includes savings such as a five pack of Fairtrade bananas, lowered from 80p to 69p; a six-pack of kiwi fruit down 18p at 67p; celery 7p off at 43p; 220g of Imperfectly Tasty Green Beans down 6p at 69p; 1kg of Imperfectly Tasty Carrots 5p off at 40p; 1kg of Imperfectly Tasty Baby Potatoes down 30p at 65p; and 1kg Greengrocer Berry Mix 11p lower at £2.39.
Chief executive Simon Roberts said: “We are making great progress delivering our Food First plan and I’m determined that in these tough times, we do even more to help our customers save money. Our new commitment to match Aldi prices on hundreds of our most popular products will mean our customers can be confident that they are getting the quality they expect from Sainsbury’s at great prices.”
Sainsbury’s also has a Price Lock campaign, with the price of around 2,500 everyday products fixed for at least eight weeks.
© Lionel Allorge, Wikipédia
According to the CGT union, the 240 employees working in these stores will be reclassified elsewhere.
This decision comes after the takeover by Aldi of the Leader Price franchise from the French giant Casino during last November. The stores concerned are to often be sold to other companies, for various reasons like a too close proximity to Aldi brand’s stores or a too strong competition in the sector.
The CGT union fears the start of a larger store closure for Leader Price franchise. According to the union, almost 1,500 stores might be targeted by potential closures in the coming months. In the context of coronavirus, the announcement of closure, more or less large, has the obvious consequence of creating anxiety, among employees and in the sector.
Aldi will continue its expansion in Italy, which has seen an average of three openings per month (mainly in the north), despite the many difficulties caused by the pandemic. The fruit and vegetable department continues to play a central role, as it seeks to keep the supply chain as short as possible by offering a generous selection of about 120 items of fresh fruit and vegetables.
About 80% of the food products sold by Aldi in Italy come from Italian and regional suppliers, promoting strong local links, while respecting sustainability and the seasonal rhythms of fruit and vegetable production.
Aldi’s corporate responsibility principles are laid out in a multi-year Today for Tomorrow programme, which aims to ensure sustainable development for the environment and for the society of the future. Faced with a growing number of stores, in May, Aldi doubled its logistics capacity to optimise the distribution process and now has two centres, in Oppeano (Verona) and in Landriano (Pavia). In line with the policy of greater energy efficiency, both logistics centres and shops are equipped with LED lighting and solar energy panels and all buildings are EN ISO 50001 certified.
Photo: ALDI supermercados
Aldi’s decision to cut its banana buying price for 2021 has led to a backlash among producers. Costa Rica’s association of independent banana producers (Aproban) stated that the retailer’s actions will worsen the lives of producers and benefit the most privileged. The association said it categorically rejects Aldi’s unilaterally lowering of the purchase price by €0.06/kg, taking the box price down to €11.33 as of January 2021. As the biggest banana purchaser in Europe, Aldi’s price is effectively used as reference for the entire European market.
A statement from Aproban said: “National producers are committed and comply with the environmental, social, economic and sustainability requirements and demands of the European market, supermarket chains and consumers. This situation that implies greater investment and greater weight than the rest of the actors in the value chain, which is why these types of unilateral decisions impact Costa Rican producers, who see their costs increase and the price paid for their fruit decreased.”
It is feared that Aldi’s actions will promote lower social and environmental standards and result in increased poverty.
The statement continued: “In times of crisis like the one we live, with hunger at the doors of many homes, these actions worsen the lives of many, so we respectfully oppose this Aldi decision that would harm banana production, the country’s economy and the creation of jobs that this activity generates.”
German discounter Aldi is to hire 4,000 new workers in the UK, after committing to investing £1.3 billion into upgrading stores and distribution centres by 2022. The move follows a 49% increase in pre-tax profits to £271.5 million in 2019, reports Retail Gazette. Sales were up by 8.3% to £12.3 billion thanks to a 6% rise in new shoppers to 17.6 million.
The new investment plan foresees Aldi opening 100 new stores across the UK in 2020 and 2021, which will create 4,000 new jobs in addition to the 3,000 permanent positions created so far in 2020. Aldi’s long-term goal is to have 1,200 UK stores in operation by 2025.
Aldi chief executive, Giles Hurley, said: “For over 30 years, our success has been driven by the ever-increasing number of shoppers who put their trust in Aldi every time they shop with us. This is what enables us to keep investing in Britain – in our products, our prices, our people and in the communities we serve. With the UK’s economic outlook increasingly uncertain, families are more concerned about their grocery bills than ever. We’ve seen before that our customers need us most in times of financial hardship, which is why our commitment to remain Britain’s lowest-priced supermarket is more important than ever.”
Photo: Aldi UK
Aldi UK has announced that it is to relax shopping restrictions for a series of products that were previously being rationed at its UK stores. The discounter, which has recorded an 11% jump in sales in the past month, had limited customers to four of every product after panic-buying in response to the coronavirus pandemic. Products such as fresh fruit and vegetables and meat will no longer be rationed for shoppers. However, Aldi customers will continue to be limited to only two of its most popular items, which include antibacterial hand gel, UHT milk and baby formula. Meanwhile, other popular items such as nappies, bleach, toilet roll, pasta, tinned tomatoes, beer and hand wash will be limited to four items per person.
A statement from the German retailer said: “While we would still encourage people to buy only what they need, product availability in store is good and the move will make it easier for people to shop for vulnerable people and those who are self-isolating.”
Credit photo: Aldi
Aldi has joined its rivals in the drive to reduce plastic consumption by trialling reusable bags for its fruit and vegetables. Instead of plastic bags, the retailer will offer drawstring bags made from recycled plastic bottles costing 25p each. The initiative will affect over 250 stores in the UK and follows a similar project launched by Sainsbury’s.
Aldi has pledged to reduce plastic packaging by 25% by the end of 2023. If rolled out nationally, it is estimated that the project would remove the equivalent of 113 tons of single-use plastic from circulation each year.
Managing director of corporate responsibility at Aldi, Fritz Walleczek, said, “We are hopeful that our customers will embrace these new reusable produce bags whenever they’re buying loose fruit and veg.”
Aldi opened two new stores in Shanghai on 13 October, consolidating its presence in China. The German retailer opened its first two stores in Shanghai’s Baoshan and Putuo Districts in June of this year. The company’s aim is to use these outlets to understand the Chinese market by customising them specifically to local tastes. Aldi offers its Chinese customers an integrated online and offline retail experience, including a scan-and-go function on WeChat for customers who wish to avoid queuing, as well as an Aldi WeChat mini-programme, which provides an instant delivery service within a three-kilometre radius from each store.
Photo: Nikkei Asian Review
Aldi Süd is to expand its Italian network with the addition of 80 new stores and a new distribution centre in Landriano, near Pavia, to better serve the north-west of the country. According to reports from Il Sole 24 Ore, the German discounter is mainly targeting metropolitan areas, particularly Milan and its environs. The new stores will open in 2020 and will consist of 600m2 and 800m2 structures.
In line with its commitment to a zero-kilometre approach, almost 75% of the food assortment at Aldi’s Italian stores will be sourced from Italian suppliers, with more space reserved for local products. Aldi has 66 stores Italy, mainly located in the north of the country. Meanwhile, the retailer has announced that is also planning to open 300 new outlets in Switzerland over the next ten years.
Kantar Worldpanel’s latest supermarket share figures for – for the 12 weeks to May 22 – show a strong sales boost for the grocery market with sales increasing by 4.0% compared with last year, the global expert in shoppers’ behaviour reports.
Kantar Worldpanel director David Berry said the data shows consumers are making more frequent visits to supermarkets, averaging an additional four trips in the latest 12 weeks compared with last year. “Coupled with increased prices this means that the average household is spending an additional €50 on groceries this year, amounting to an extra €89 million for the market.”
In terms of grocery market share for the latest 12 week period, SuperValu, which enjoyed its tenth consecutive period of growth, was in the lead – for the eighth month in a row – with a 22.7% share of the market. It was closely followed by Tesco with 22.4% and Dunnes with 21.4%. Berry noted Tesco saw its first growth in footfall in 10 periods, “suggesting its investment in keeping prices down may be starting to pay off.”
“Lidl continues to post impressive sales growth as more consumers choose to shop with the retailer – a record 72.4% of all Irish households shopped in a Lidl store in the last quarter, widening the gap between it and rival discounter Aldi. Sales growth for Aldi stands at 2.4% in the latest quarter – a positive step up from the previous results for April and an early sign that sales growth might be starting to improve again,” he said.
source: Grocery spend continues to rise, record numbers shop at Lidl, 07/06/2016, Kantar Worldpanel Ireland