Aldi to launch British web shop in 2016

Aldi to launch British web shop in 2016

German discounter Aldi is set to launch a British web shop next year. That announcement came together with the publication of Aldi UK's results for 2014, showing a huge turnover growth of 31 %, but a operational profit drop of 4 %.

Aldi UK follows Aldi Australia's example

At first, Aldi UK will sell boxed wine, adding non-food items to its online product range in the spring of 2016. Aldi Australia, also part of Aldi Süd, already performed this move, as it already sells wine and non-food articles online. They are called Special Buys over there and that will also be the name in the United Kingdom.

 

The online orders can be delivered home or customers can pick them up at external pick-up points, but it seems unlikely Aldi will use its own stores as a possible pick-up location. If it did decide to do so, it would have to change its stores to handle the delivery of online orders, which would increase the complexity of the entire operation and is opposed to Aldi's business model of doing everything at the lowest possible operational cost.

 

Lower prices, higher cost

Aldi UK's brick-and-mortar stores already faced lower profits and higher costs in 2014, as the chain had to lower its prices and hire more staff to improve its customer service. All this lowered the operational profit by 4 % to 260 million pounds (more than 350 million euro).

 

Aldi UK's turnover still increased 31 % to 6.9 billion pounds (9.3 billion euro), thanks to the large number of new stores it opened. Aldi Süd's British subsidiary now has 598 discount stores, although it will keep adding stores: the company has stated it is on course to open its targeted 65 new stores by the end of the year.

Questions or comments? Please feel free to contact the editors


Arket Brussels opens: discover H&M's latest concept

14/09/2017

On Friday 15 September, H&M Group’s new store formula opens its doors on the Guldenvlieslaan in Brussels. The press got a sneak preview and discovered a surprising mixture of fashion, interior design and food. 

Nordstrom opens store without storage

13/09/2017

American fashion chain Nordstrom is to trial a new store formula in Los Angeles next month, in which customers will only be able to get advice and try out clothing. Purchases can be picked up at the store at a later date.

Primark benefits from weaker British economy

12/09/2017

Irish fashion chain Primark takes full advantage of the weak British economy, which prompted its parent company AB Foods to adjust its full-year forecast. The chain will also continue its expansion plans.

Participatiemaatschappij Vlaanderen invests in FNG

11/09/2017

Government investment fund Participatiemaatschappij Vlaanderen (PMV) will invest 15 million euro in fashion group FNG in return for 5 % of its shares. The money will go towards international expansion.

Gap Inc will focus on Old Navy and Athleta

08/09/2017

American fashion company Gap will alter its internal strategy and turn its attention to Old Navy and Athleta. Gap and Banana Republic, which both received the most attention up until now, will have to step aside.

Global Fashion Group cuts losses

08/09/2017

Global Fashion Group, the fashion group founded by investment group Kinnevik and Rocket Internet, managed to lower its losses even more in the second quarter. On top of that, turnover grew more than 25 %.

Back to top