Cash-strapped consumers flock to discounter Aldi

More evidence in a good piece in the Sunday Telegraph today that consumers are increasingly turning to the discount supermarket chains as their disposable income comes under pessure from rising household inflation and increasing unemployment…

The article focuses on the very strong sales growth enjoyed by Aldi in the UK.

Aldi’s UK sales are said to be up 25% for 2008 to-date (although the percentage growth is a little inflated as the business is growing retail space from a relatively low base).

However, there are some useful insghts in the article for business students: for example

- Keeping overheads down by operating from low-cost, no-frills locations
- Better control over stock by offering a much narrower range of products & brands than a traditional supermarket
- Socio-economic profile of the typical Aldi customer