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UK shoppers are buying premium own-label products as cost of living pressures start to ease, according to Aldi UK CEO, Giles Hurley. Sales of premium own-label products are growing faster than other grocery sector products, reflecting a trend for customers to ‘trade up’ to premium Wagyu steak, premium cheese, ready meals and brioche buns. The 16% increase in sales includes 23 new stores that Aldi has planned as part of an £800m investment plan. While some of the increase can be attributed to consumers cutting back on dining out, another factor is that the increase reflects more customers opting for in-home entertaining.
Despite Aldi announcing bumper profits, the budget chain has lost ground to its competitors in the fight for market share. Last year, Aldi was the fastest-growing supermarket, according to industry figures, but its growth has slowed in recent months. Aldi now faces stiff competition from rivals with matching loyalty cards and reward schemes, but Hurley is not interested in matching this approach. He instead stresses keeping commitment around promises as the best way to demonstrate loyalty to customers. Aldi has long-term plans to open 1,500 UK stores, however, consultants such as Ged Futter are questioning how the supermarket chai can grow beyond opening new sites
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