Encouraged by its success selling premium wines, Aldi UK is planning a push into posh on high street.
The Daily Mail reports the German-headquartered discounter is now selling nine bottles of wine a second. Now it wants to change its image, moving away from a limited range, pure discounter and build a long-term presence on high street.
In three years, Aldi UK has doubled its sales – to £7.7 billion. Profit however was not so stunning, down from £250.6 million to £212 million, reflecting its investment in cutting prices as Britain’s fierce grocery price war continues.
But the company sees strong potential moving into the premium sector where margins are higher – hence plans for a £300 million revamp largely targeting Waitrose, which has a more upmarket image than the big four grocery chains.
New stores will feature new signage – eschewing the bold orange and blue colour schemes in favour of something more premium in character.
Aldi UK CEO Matthew Barnes said Aldi is increasingly being seen by customers as a British retailer. “We sponsored the Team GB at the Olympics and British-sourced products are 77 per cent of total sales.”
He said the new format in store includes newly-designed fixtures for beers, wines and spirits, fresh produce and baby and toddler, as well as a new food-to-go fixture.
“We wanted something to showcase our wine credentials and fresh fruit and vegetables.”
Aldi plans to refurbish 100 stores in 2017 and open 70 of the new format next year aiming for a nationwide network of 1000 by 2022.
