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Aldi Ecommerce

How Aldi’s bet on ecommerce could be the start of a beautiful, if covert, relationship with shoppers

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By Seb Joseph, News editor

September 28, 2015 | 4 min read

Aldi’s move into online sales broadens the convenience of its service and could pave the way for a proposition potent enough to win over those shoppers still reluctant to be seen shopping at the no-frills retailer.

The discounter will start selling wine by the case before peddling non-food special offers in the spring. Shoppers will either have their orders delivered to their homes or to third party locations for collection.

Aldi has hit a sweet spot in grocery that is eluding the majority of its competitors. However, retail experts believe the supermarket cannot afford to rest on its laurels in its transition into the online space, where the likes of Tesco and Sainsbury’s are more experienced and capable of offering more choice.

“One of the challenges that Aldi may face is successfully maintaining its Click and Collect offering, as Tesco’s fairly recent decision to raise its click and collect threshold shows, the slim margins that Click and Collect operates on can make it costly for even the major retailers” said Darryl Adie, managing director of retail specialists Ampersand.

“The growing trend of discount retailers such as Poundland and now Aldi moving into multi-channel retail is an interesting one. These retailers are betting on the economies of scale and if consumers respond well to their respective online offerings, we could see some major shifts in the retail landscape.”

If the big four supermarkets were already worried with Aldi’s rate of growth, now more than ever they’ll need to look at ways to find growth to maintain their top positions, argued Nina Rahmatallah, brand director at marketing consultants Added Value.

“[Aldi going online] t broadens the convenience of service for their existing customers and for those who might still feel weary of setting foot inside an Aldi or be seen with their shopping bags this could well signify the start of a beautiful, if covert, relationship with the brand,” she argued.

Ecommerce is the latest indicator of Aldi’s growth and confidence in its popularity, having enjoyed a rise in footfall from cash-stripped middle class shoppers over the last 18 months. Aldi’s star has risen as the big four supermarkets have seen sales plunge, though ecommerce – due to the convenience to shoppers – continues to be an area ripe for growth.

Aldi will be hoping the online push helps build on the sales momentum that hit record highs in 2014. Sales jumped 31 per cent to £6.9bn in the 12 months to 31 December, compared to the £5.27bn the year before. Sales were buoyed by an increase in marketing spend, which has seen the supermarket carve out a distinctive brand voice with some executions poking fun at its larger rivals and others trumpeting up the quality of its products.

The increase spend stunted profits with Aldi adding that larger investments in “prices and people” pulled profits down to £260.3m in 2014 from £271.4m the year before.

Matthew Barnes, chief executive of Aldi UK and Ireland, said: "As the grocery market continues to evolve, our unique model, operational efficiency, private ownership and financial strength mean we're able to keep investing in our business - from people and presence to products and prices."

To continue momentum, Aldi, which currently runs 598 stores in the UK, plans to open 65 new stores by the end of the year.

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