Aldi is certainly enjoying its moment in the spotlight. UK profits are up almost 32 per cent cheap school label packs-on-year. It has just opened its 500th store in Britain and has promised another 50 are on their way. What’s more, its products are being heaped with praise.
Aldi’s Christmas pud recently beat the best that Harrods and Heston had to offer in blind-taste tests by the Good Housekeeping Institute. No wonder, then, that almost one in three households now visits Aldi at least once a month, according to research agency Nielsen. And of those, one in five customers is now middle class or upper middle class — up from one in eight a year ago. It’s a telling sign of how audaciously this German bargain store has taken on the established supermarkets. It’s been a clever evolution, beginning with Aldi’s move into more affluent areas such as Winchester, in Hampshire, and Knutsford, Cheshire. It also began selling smarter products, from lobster tails and Parma ham to Belgian chocolates. Britain by the same people who supply leading brands.
But group managing director Roman Heini puts Aldi’s success down to one factor: cost. We believe growth is down to one thing — customers demanding true value,’ he says. Aldi manages to achieve such cost-cutting by stocking virtually all own-branded goods. It means they don’t have to split profits with brand manufacturers. And as you can see from these pictures, in a slightly naughty marketing sleight-of-hand, Aldi’s own-brand products look astonishingly like brands we all know and love — but at a fraction of the price. To further cut costs, they sell far fewer lines than most supermarkets.
While a large Tesco store will stock 40,000 lines, Aldi stocks just 1,350. There might be 20 pasta sauces in Tesco but at Aldi they might have two or three. Because they buy those few lines in such large quantities, they can negotiate very good prices for buying in bulk. Aldi’s shops also follow a no-frills model and — gasp — you can’t pay by credit card. Aldi stands for Albrecht Discount after the two brothers, Theo and Karl Albrecht, who established the chain just after World War II. They expanded the store first set up by their mother in Essen, Germany, in 1913, to support the family when her husband, a miner, became ill. The brothers opened 13 more outlets selling goods with basic packaging, stored on pallets.
17 countries where it operates — partly thanks to the marketing of their cheeky lookalike products. Such imitations arouse the curiosity of consumers as to whether they really are similar to the brands they ape. But how does Aldi get away with, for instance, that monkey on the Choco Rice which looks very like Kellogg’s Coco Pops? Brands are cautious about taking legal action in situations like this. The brand would need to prove that the copycat product is deliberately out to confuse the buyer into believing that the similar-looking product is actually connected economically to the original in some way. So, how do Aldi’s lookalikes fare in a taste test?
Can they really compete with the best of the brands? It’s time to man up, Harry! Georgia Walsh, 16, killed herself last year after accusing her stepfather Brett Connell of sex abuse. The comments below have not been moderated. We are no longer accepting comments on this article.
Intimidated by the thought of taming your garden for summer? Enter the characters you see below Sorry, we just need to make sure you’re not a robot. Enter the characters you see below Sorry, we just need to make sure you’re not a robot. When you go clothes shopping, what do you look for? Indeed, across the High Street, sales of ethical clothing have fallen thanks to their perceived high cost — Fairtrade cotton sales fell from 18 million items to 12 million between 2009 and 2010.