Aldi is putting plans in motion to create 35000 new jobs in the UK as it intends doublings the number of stores over the next eight years.The supermarket group intends to have 1000 stores by 2022 and is set to open 54 during this year and around 60 to 65 during next year.
These details were made public during a visit by David Cameron to the group’s UK head office. An analyst has however cast a shadow of doubt on the potential number of jobs that this expansion will create as the figure of 35000 is dependent on an ambitious program of store openings which may not be realized. The retail analyst, Nick Bubb, stated that these low-income jobs could come from other stores being put out of business by Aldi.
According to Aldi, the new jobs will include several management positions, both at offices and in-store, along with distribution and shop floor positions.
Aldi confirmed its plans to invest £600m for its expansion plans in Britain. The retailer previously stated that its aim is to reach 1000 stores by 2021.
Aldi, along with Lidl, has been placing pressure on the big four supermarkets, by offering lower prices. According to Kantar Worldpanel, it currently holds a 4.8% share of the British grocery market. This is above Lidl’s share of 3.5% and hot on the heels of the 5.1% share Waitrose holds. In comparison, for the 12 weeks ended September, Tesco holds a 28.8% share, with Asda in second position at 17.4%. Aldi UK’s group managing director, Roman Heini, has confirmed that the company is purchasing more products which are produced locally and growing its fresh food range.
The group experienced an increase in its UK pre-tax profits of 65% to reach £260.9m for the year ended 31 December 2013. It also reported an increase of 35% in turnover, to reach £5.27bn. At present, Aldi holds in excess of 7000 stores on three continents.
13 NOVEMBER 2014, United Kingdom