Aldi pursues aggressive pricing policy after growth year

Aldi Nord recorded a 7.5 % increase in sales last year, thanks to its international expansion. The German discounter is not recording large profits, but that does not stop it from focusing more on prices.

Better off without Denmark

After years of reorganisation and modernisation, which put promotions more to the background, the discounter wants to return to its main focus – low prices. After all, investments are starting to pay off and profits rose significantly in 2023, Lebensmittel Zeitung reports.

In all countries where the chain is active, it managed to achieve a positive EBIT – although this is partly due to the fact that Aldi also owns a number of its real estate locations. In 2023, the chain put an end to its loss-making activities in Denmark, while the group continues to struggle in France and is still feeling the effects of considerable investments in its German home market.

Focus on foreign markets

Net sales grew 7.5 % to 29 billion euros: in addition to strong expansion – the chain opened almost 100 supermarkets outside of Germany – the growth is due to high inflation. However, GfK reports that Aldi still outperformed the market. The company has also gained market share in all of its markets. The German domestic market generates more than 6.2 million euros in net sales per store for Aldi, while abroad the figure remains lower.

This year, Aldi Nord plans to open 200 supermarkets, including sixty in Poland. However, the new locations will be smaller and cheaper to set up: instead of 1,100 to 1,200, the chain is now aiming for 1,000 sqm for a store. The discounter is also reorganising its purchasing organisation to focus even more on private labels and reduce the range to around 1,800 items.