The hard discount grocery format is less successful in the UK than Germany
UK grocery giants make it hard for continental discounters to succeed
Economic problems help the discount format succeed in Germany
Aldi benefits from Kwik Save’s struggles, inheriting its’ customers
Aldi repositioned itself in the UK to offer a softer discount proposition
Aldi introduced a premium range in 2005 to attract broader social economic groups
New city center stores aim to attract more well off consumers
New advertising promotes value for money rather than a low price shopping experience
Premium offering is key to its UK expansion plans
Aldi has also been upscaling in other European nations, by broadening its product offering
Big name brands now offered in Aldi's German stores
Aldi’s German Internet site offers extra services not available in-store
Aldi offers low cost mobile services in Germany and Belgium
Despite repositioning, its customer loyalty remains behind other UK grocers
Aldi’s premium range enhances consumer loyalty, but a high proportion of customers still shop elsewhere
The broader consumer base criticize Aldi's shallow premium offering
Store environments remain basic and service minimal, which could devalue its premium offering
However, Aldi's reputation is improving, as noted in the Which? consumer survey
APPENDIX
Case study series
Methodology
Secondary sources
Further reading
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Abstract
This report on Aldi forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. Each case study provides a concise evaluation of a company that stands out in some area of its strategic operations.
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