Aldi is setting out on an expansion drive aiming to oust Morrisons from the fourth spot in the UK retail market. The hard discounter hopes to grab a 12 per cent share of the market and open up to 250 stores in the UK and Ireland over the next four to five years with an ultimate goal of 1,500, Paul Foley its group managing director for the two countries said: “The bigger the business gets, the faster you can grow.”
If sales volumes achieved by Aldi’s existing 401 shops were matched, then 1,500 stores would give the retailer a 12 per cent market share, ahead of Morrisons. Aldi had a 2.6 per cent share for the 12 weeks to June 17 and Morrisons had 11.2 per cent, according to TNS Worldpanel.
Foley insists that 1,500 is a “realistic” target, but admitted it might take a long time to achieve. The main sticking point is recruiting and training staff rather than getting planning permission.
Aldi’s first city-centre store, which threw open its doors in Manchester last year, is performing ahead of Foley’s expectation. He is also increasing the number of premium lines under the Specially Selected brand and has added 25 organic product lines in the past six months. “Premium is a significant feature of our ranges,” he said.
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