German retailer Aldi - an abbreviation of Albrecht Discount - has led the rapid growth of the so-called "hard discount" sector in the European retail industry, stripping out all unnecessary costs in order to sell a carefully controlled selection of high-volume own-label products at rock-bottom prices. Despite its stripped-down offering, Aldi has developed an unlikely position in Germany as one of the country's best-loved institutions, frequented by wealthy bargain-hunters as well as the less well-off. That's largely because of a focus on high quality despite the low pricing. The family-controlled group also has an extensive global profile, with operations as far afield as the US and Australia, as well as other European markets. In several countries, not least the UK and Australia, the relentless expansion of Aldi and also its domestic rival Lidl, has resulted in fierce competition with local chains who have struggled to match the German group's prices.
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Adbrands Weekly Update 14th Jun 2018: In the UK, German challenger Aldi was named as Grocer of the Year for the 4th time in six years at the annual Grocer Gold Awards. Last year it was beaten by a reinvigorated Tesco under CEO Dave Lewis, but this year it was business as usual for Aldi, which has delivered double-digit growth in the UK for seven straight years. Aldi also collected 35 top awards at the Grocer Own Label Awards.
Adbrands Weekly Update 16th Nov 2017: Ads Of The Week: "The More The Merrier". Are we Brits undergoing some sort of Brexit-induced crisis of confidence? We arguably invented the modern version of Christmas 150 years ago, yet this year some of the best Christmas ads have originated in a country where they celebrate the holidays on the beach with a barbecue rather than in front of a roaring log fire with snow on the ground outside. For example, in a complete change from the usual style of seasonal ads, here's a wholly out-of-the-ordinary film from BMF for the Australian branch of Aldi. BMF always hits one out of the park for Aldi at Christmas, and this one is no exception, with all the humour, imagination and inventiveness that seems to be missing from Adland UK's latest offerings.
Adbrands Weekly Update 15th Jun 2017: It looks like a price war is coming to the US supermarket business. Discounter Aldi is ramping up expansion plans as it prepares for the arrival of German-born rival Lidl, whose first American stores opened this week. Aldi announced a further $3.4bn investment in its US subsidiary, and plans to expand its footprint to 2,500 locations by the end of 2022, from around 1,600 at present. That would make it the country's third largest supermarket retailer by outlets behind Walmart and Kroger. It is already spending several billion dollars more on store renovations. Expansion by Aldi and Lidl has already overturned the traditional order in the UK and Australian supermarket sectors.
Adbrands Weekly Update 9th February 2017: After months of neck-and-neck rivalry, Aldi has overtaken The Co-op for the first time to become the UK's 5th largest food retailer. Kantar Worldpanel figures for the 12 weeks to 29th January estimated Aldi's share of till roll at 6.2%, compared to 6.0% for Co-op. It was perhaps unfortunate timing that, later the same day that Kantar's figures were published, Richard Pennycook resigned as CEO of Co-op Group. His departure was not connected to the market share figures, and he will in fact be succeeded by Co-op retail chief Steve Murrells. COO Pippa Wicks moves up to deputy CEO. Pennycook is widely credited with having rescued The Co-op from near-collapse in 2013, as a result of the financial crisis at its banking division.
Adbrands Weekly Update 10th Nov 2016: Ads Of The Week: "Kevin The Carrot". Aldi's UK Christmas campaign couldn't be more different if it tried from its Australian cousin (see our Facebook page) in which a family of horrendously exaggerated brash Americans discover the joys of an Australian Christmas. Our British campaign is far more restrained. Also perhaps borrowing a leaf from Sainsbury's 2015 campaign, agency McCann London has plumped for a CGI children's story featuring not animated animals but animated vegetables, recounting the (mis)adventures of Kevin The Carrot. It's a charming fable, and all that food looks truly delicious. Watch out Big Four supermarkets! Aldi is planning to take another big bite out of your market share this year.
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