The history of Aldi can be traced back to 1913 set up as a small grocery store by Anna Albrecht the company evolved over time and was later run by her sons Karl and Theo Albrecht. In1962 the the brother decide to call the business Aldi. The name mean (Al) brecht (di)scount. In 1990 they open their first store in the UK. in 2020 in the UK they averaged an 7.7% market share.
Discounter
Aldi competitive advantage and their USP is the position they adopt in the market as a discounter. The company in their advertising campaigns will always compare themselves to their competitors and outline that they can offer an equal quality product or even a better product at a cheaper price.
Number of store in Europe 11234
Across Europe in 2020; Aldi has 11234 stores and is growing rapidly. They operate in a number of different countries including Germany, England, Spain, France and; Belgium. The company also owns Traders Joe; in the USA.
Success during Covid 19 Pandemic not true market share fell as consumers went to other leading supermarkets.
Aldi is not known only for food but also for their non food items that are sold. These include clothes, garden and DIY tools, Toys amongst much more. The non food items bring shoppers to the store which then encourages impulse purchase.
Premium products
Although a discounter Aldi has introduced a number of premium products that have helped maintain market share and helped increase their sales during Christmas 2019 in the UK.
Segmentation strategy
Aldi have cleverly moved into providing premium products to a clientele that are not as price sensitive. This has helped boost sales for the company.
Market share
During the lockdown Aldi market share declined from in the UK by .4% as more customers shopped online with supermarkets that offered online shopping.
Limited range Aldi stock far fewer than the 25000 stock that Tesco stock, given customers fewer choices.
Brand perception;
Aldi is still perceived by some customers as a low cost provider, offering own brand products that are not comparable to brand leaders.
Poor margins
The % margins within the supermarket industry is small and supermarkets rely on large turnover to make a profit
Market share growth
Aldi has the opportunity to increase market share by increasing store numbers and trying to widen their target market
Economy
A recession may mean consumers leaving their traditional supermarkets and shopping more frequently with this discounter.
Aldi as of October 2020 is trialling click and collect services, during the pandemic there maybe a great opportunity to expand this service.
Supermarkets such as Lidl and Tesco are a major threat to Tesco. All sell similar products and compete at similar price points.
Economy. The uncertain future of the economy due to the current pandemic may continue to impact ALDI sales. If ALDI does not introduce online shopping and with further lockdowns occuring , customers may feel safer to order online from competitors.
The SWOT analysis on Aldi gives you a general understanding on the current situation of Aldi as of Januay 2021
Aldi is in a strong position, they are expanding at a phenomenonal rate and dealing with their competitors in a succesful manner. Market share has increased and they will continue to grow from strength to strength.
