Professional Documents
Culture Documents
August 2022
Introduction
State of play
Competitive positioning
Key findings
Appendix
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Introduction
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INTRODUCTION 55
Scope
The globally active discounter chain Aldi has
opened new markets in recent years and
shown strong growth especially outside its
home country. Despite strong competition,
some of which has been established for
decades, Aldi has been able to gain a presence
in large markets.
In doing so, the German company is focusing
on modern store concepts and testing
innovative ideas like Aldi's new cashier-less
concepts which offer a glimpse of what the
supermarket of the future could look like.
Disclaimer
Much of the information in this briefing is of a
statistical nature and, while every attempt has
been made to ensure accuracy and reliability,
Euromonitor International cannot be held
responsible for omissions or errors.
Figures in tables and analyses are calculated
from unrounded data and may not sum. Analyses
found in the briefings may not totally reflect the
companies’ opinions, reader discretion is advised.
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INTRODUCTION 66
Executive summary
While COVID-19 has accelerated its retail value sales, Aldi has been challenged by supermarkets
Inflation and economic as consumers had higher disposable incomes which they spent on more premium products. In
uncertainty will spur 2022, however, the inflation and economic uncertainty have changed consumer preferences
discounter sales possibly to Aldi’s advantage as consumers are expected to seek cheapest possible prices over
the coming years.
In view of Aldi’s struggles in Germany, the company is turning increasing attention abroad.
Ambitious expansion strategies aim to challenge local competitors. Especially the US, the UK
International markets grow
and Australia have become some of its biggest markets. While Aldi expanded into China and
faster than Aldi’s home base
might aim into regions further away, it is consolidating its presence in the respective markets
by expanding and modernising its stores as well as distribution networks.
In its German home market, Aldi’s competition always seems to be at least one step ahead in
Digital shopping experiences terms of food e-commerce. However, in its international markets, Aldi has tested various digital
shape the future initiatives to meet consumer expectations. Those findings will also help Aldi to find a strategy in
its home market. Aldi Nord and Aldi Süd have joined forces to become more cost-efficient.
As part of Aldi’s international corporate responsibility strategy, the discounter is aiming to make
Democratise sustainable sustainable grocery shopping affordable for everyone. Thus, it can be expected that Aldi will
products aim to keep its lowest-prices promise while changing its product portfolio towards a more
sustainable one.
© Euromonitor International
State of play
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STATE OF PLAY 88
© Euromonitor International
STATE OF PLAY 99
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STATE OF PLAY 10
10
Company overview
Privately-owned Aldi Group, operating through two separate entities -
Aldi Nord and Aldi Süd - is the leading discounter globally. The
company does not publish financial results, however, according to
Euromonitor International data, combined global sales amounted to
USD116 billion in 2021.
Aside from leading the German discounter market, Aldi Group is
following an international expansion strategy that has significantly
strengthened its position in key growth markets, especially the UK,
the US and Australia. With its business model centred around
discount prices, Aldi attracts a growing number of consumers abroad
while putting pressure on higher-priced local competitors.
While Aldi has usually exported the same discount model that has
been successful in its home market, the company is becoming
increasingly adaptive and eager to try new concepts. For example, the
company has introduced smaller-format stores in the UK and opened
state-of-the-art outlets with a premium positioning in China, targeted
at high-end shoppers. At the same time, Aldi invests heavily in
modernising existing stores to match new consumer expectations.
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STATE OF PLAY 11
11
Ownership structure
Aldi was established in Germany in 1946. The chain was originally run by two brothers, Karl and Theo Albrecht, who split the franchise
between them in 1960, creating two individually managed groups that each make use of the Aldi brand while separating the German
market into north and south between them. In addition to its operations in the northern part of Germany, Aldi Nord maintains more of a
Western European focus, except for operations in Poland and Trader Joe’s in the US. Aldi Süd has a greater global reach with a strong
presence in the US, Australia and a recent market entry in China in addition to its European operations.
Aldi Nord Aldi Süd
Region Country Brand Name Region Country Brand Name
Western Europe Germany Aldi Western Europe Germany Aldi
Western Europe Belgium Aldi Western Europe Austria Hofer
Western Europe Ireland Aldi
Western Europe Denmark Aldi
Western Europe Switzerland Aldi
Western Europe France Aldi
Western Europe UK Aldi
Western Europe Luxembourg Aldi
Eastern Europe Hungary Aldi
Western Europe Netherlands Aldi
Eastern Europe Slovenia Hofer
Western Europe Portugal Aldi Australasia Australia Aldi
Western Europe Spain Aldi North America US Aldi
Eastern Europe Poland Aldi Western Europe Italy Aldi
North America US Trader Joe’s Asia Pacific China Aldi
© Euromonitor International
STATE OF PLAY 12
12
Growth decomposition
Among the top 10 players in grocery retailing, Aldi had the second
highest CAGR over 2018-2021 of over 4%, just behind its German
competitor Lidl, thanks to significant growth in a number of
international markets that are characterised by income inequality
and tired mid-market brands.
Italy, France, Hungary and Portugal have been the company’s fast-
growing markets, and are likely to continue to account for the
majority of Aldi’s growth going forward. The company announced to
build more than 100 new outlets with the goal to become the
market leading discounter in France, which at the moment is Lidl.
Part of the success is not only the growth of discounters in the
respective countries, but also Aldi’s adaptability into local markets.
Aldi has only been present in Italy since 2018, but has more than
doubled its sales in the country in the last four years and aims to
have 150 outlets by the end of 2022.
In addition to its home country Germany, which is still Aldi's
strongest sales country, the discounter is particularly successful in
the US and the UK.
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Exposure to future growth
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EXPOSURE TO FUTURE GROWTH 14
14
Exposure to growth
Aldi is increasing its global market share by
increasing its presence across the globe.
Especially its expansion plans in the UK and US
will further expand its share in the respective
markets. This is happening at a time when more
consumers are seeking cheap prices due to
inflationary pressures. In both countries, Aldi is
the number one discounter whose main
competition comes from Lidl. Especially in the
UK, the major supermarkets are losing ground to
Aldi.
Growth contributions from the German market
will further decrease amid intensifying
competition and an increasing focus on other
fast-growing markets, particularly in Europe, as
well as expansion goals in Australia.
Aldi’s expansion in China (particularly Shanghai)
with 26 stores offers opportunities but sets the
company at risk due to growing political
pressure.
© Euromonitor International
EXPOSURE TO FUTURE GROWTH 15
15
Projected rankings
In 2021, Aldi was the 10th ranked retailer
globally, positioned some way behind the
e-commerce players Amazon and Alibaba,
and the leading US grocery retailers, such
as Walmart and Kroger.
After dropping out of the top 10 retailers
globally in terms of sales, Aldi will lose
further ground by 2024.
Despite Aldi‘s global expansion as well as
its promise to sell at lowest prices in times
of high inflation, Aldi will experience
increasing pressure from e-commerce
players such as the Chinese online
marketplace Pinduoduo which is projected
to jump to fifth position globally in 2024.
© Euromonitor International
EXPOSURE TO FUTURE GROWTH 16
16
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COMPETITIVE POSITIONING 18
18
Relative performance
Globally, retailing is a fragmented market.
In 2021, Walmart led with a 3% value
share.
After Walmart, the e-commerce giants
Amazon, Alibaba and JD.com rank second,
third and fourth, respectively. They have
experienced the strongest share gains
between 2018 and 2021, especially during
the pandemic.
At the same time, grocery retailers are
seeing increasing competition. The
pandemic has accelerated the demand for
online shopping where grocery retailers
have increased their online offering of
everyday essentials. However, e-food
remains relatively niche and moreover
costly for retailers. Especially for
discounters such as Aldi where margins are
rather low.
© Euromonitor International
COMPETITIVE POSITIONING 19
19
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COMPETITIVE POSITIONING 20
20
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COMPETITIVE POSITIONING 21
21
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International expansion as growth driver
© Euromonitor International
INTERNATIONAL EXPANSION AS GROWTH DRIVER 23
23
© Euromonitor International
INTERNATIONAL EXPANSION AS GROWTH DRIVER 24
24
Aldi expands in the US and the UK amidst struggles in German home market
As part of its international expansion, Aldi is particularly ambitious in the US, the only
international market where both entities of Aldi Group are present. Aldi Süd has planned to
expand to 2,500 stores nationwide by the end of 2022. Aldi Nord is also present in the US,
since the 1970s, after acquiring California-based grocery retailer Trader Joe’s. Similar to its
German counterpart, Trader Joe’s operates relatively small stores with a limited number of
SKUs while offering largely private label products at high value for money. With its focus on
specialities, delicacies and organic products, its product range differs from Aldi Süd.
In the UK, Aldi is looking to expand its retail network to having more than 1,000 retail stores by
the end of 2023. The main goal is to increase its visibility as well as accessibility to new
Source: Aldi UK shoppers across the country. As in the US market, Aldi is planning to further invest in its
distribution centres.
The strategy reflects the importance that Aldi Süd has attached to the market as a growth
driver, especially as US sales have overtaken those in its German home market. With the US
grocery retailing landscape characterised by low density of grocery retailers and relatively high
prices, Aldi Süd sees further growth potential beyond its current plan. In addition, increasing
prices due to inflation are driving more consumers towards discounters where Aldi could
potentially benefit. Especially in the US, where both entities are present with different store
concepts and price strategies, the discounter positioned itself as the “low price leader”,
whereas Trader Joe’s serves higher class and premium quality to more affluent customers.
Source: Aldi US
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INTERNATIONAL EXPANSION AS GROWTH DRIVER 25
25
© Euromonitor International
Aldi becoming a technology-driven company
© Euromonitor International
ALDI BECOMING A TECHNOLOGY-DRIVEN COMPANY 27
27
E-commerce strategy
Change of retail landscape due to the pandemic situation Experience in e-commerce in other countries
▪ The pandemic led to strong growth in e-commerce in the food ▪ In countries other than Germany, Aldi is often further ahead when it
sector in almost all regions of the world. The new competition, comes to e-commerce of food. In December 2021, Aldi Now, Aldi's
especially from fast delivery online supermarkets such as Getir online grocery shop, opened in Switzerland, where delivery is handled
or Gorillas, has not gone unnoticed by Aldi. Within two years, e- by a start-up called Annanow. However, Aldi often focuses on the so-
commerce increased by 63% worldwide. called click-and-collect model. This means that the groceries are not
delivered but collected, only the order is placed online.
Only non-food available online in Aldi’s home country Germany ▪ This is the case in the US, the UK and Ireland. In the latter two, Aldi still
offered grocery delivery until the beginning of 2022, in cooperation
▪ So far, the Aldi Group in Germany only offers non-food products with Deliveroo. However, due to the decline in pandemic restrictions,
in the online shop, and it is also not possible to order online Aldi has ended this project.
with subsequent pick-up in the supermarket. A cooperation for
▪ In the US, Aldi even has special parking spaces available in front of the
the delivery of food with the external service provider
Shopwings was terminated back in 2015. In Germany, Aldi Nord stores for online pick-up customers. In addition, the retail group offers
the grocery delivery service of the service provider Instacart in many
and Aldi Süd have now joined forces to create an online shop
parts of the US.
that is nationwide and offers both food and non-food. The
newly-founded joint venture, both companies hold a half share, ▪ While Aldi is able to learn from its international markets and might
is intended to establish an online supermarket with the translate some of this into its home market, there are still certain
experience Aldi got from other countries. infrastructural restrictions in Germany that hamper its online
expansion. However, the joint venture is a sign of further cooperation
in order to save costs and resources.
© Euromonitor International
ALDI BECOMING A TECHNOLOGY-DRIVEN COMPANY 28
28
Next-generation retailing
Via “Scan & Go”, customers scan and pay with their smartphone Buy groceries without cashier or scanning
▪ Aldi offers the possibility to pay via its so-called “Scan & Go” ▪ In addition to scanning and paying via smartphone, Aldi is also
method, meaning that customers can scan products in-store with a trying out another system to make it even easier for customers to
special app using their smartphone and pay there as well. While buy groceries. In London, Aldi is testing a method that will allow
this is still a method customers need to get used to and therefore customers to shop in the supermarket without a checkout and
still may need guidance for the procedure by employees, this without even scanning the products themselves, only an app is
method may lead to less staff required in the supermarkets as well needed to be installed on a customer’s smartphone. It should be
as no time spent by consumers at the cashier. So far, Aldi has possible for customers to simply take the products they want from
introduced the “Scan & Go” method in some of its supermarkets in the shelf and walk out of the supermarket with them. The bill or
Portugal, France and Switzerland. payment is then made shortly after leaving the Aldi supermarket.
This is made possible by a large number of sensors and cameras
that reliably register which customer has taken which product.
Although this technology is certainly exciting for many customers,
it is unlikely that it will be used in many stores in the near future.
On the one hand, conservative shoppers are likely to be put off by
this method, and on the other hand, this method’s legality is
heavily dependent on the data protection laws of the respective
countries.
© Euromonitor International
KEY FINDINGS 31
31
Key findings
While COVID-19 has accelerated its retail value sales, Aldi has been challenged by supermarkets
Inflation and economic as consumers had higher disposable incomes which they spent on more premium products. In
uncertainty will spur 2022, however, the inflation and economic uncertainty have changed consumer preferences
discounter sales possibly to Aldi’s advantage as consumers are expected to seek cheapest possible prices over
the coming years.
In view of Aldi’s struggles in Germany, the company is turning increasing attention abroad.
Ambitious expansion strategies aim to challenge local competitors. Especially the US, the UK
International markets grow
and Australia have become some of its biggest markets. While Aldi expanded into China and
faster than Aldi’s home base
might aim into regions further away, it is consolidating its presence in the respective markets
by expanding and modernising its stores as well as distribution networks.
In its German home market, Aldi’s competition always seems to be at least one step ahead in
Digital shopping experiences terms of food e-commerce. However, in its international markets, Aldi has tested various digital
shape the future initiatives to meet consumer expectations. Those findings will also help Aldi to find a strategy in
its home market. Aldi Nord and Aldi Süd have joined forces to become more cost-efficient.
As part of Aldi’s international corporate responsibility strategy, the discounter is aiming to make
Democratise sustainable sustainable grocery shopping affordable for everyone. Thus, it can be expected that Aldi will
products aim to keep its lowest-prices promise while changing its product portfolio towards a more
sustainable one.
© Euromonitor International
Appendix
© Euromonitor International
APPENDIX 33
33
© Euromonitor International
APPENDIX 34
34
Note: Growth Decomposition and Projected Sales are based on the sum of all
activity in researched countries only, and therefore do not take into account the
effect of non-researched (modelled) markets. For this reason, there will be slight
differences compared with full global data found elsewhere in this report.
© Euromonitor International
ALDI GROUP IN RETAILING (WORLD)
Linda Lichtmeß
Consultant
linda.lichtmess@euromonitor.com
https://www.linkedin.com/in//linda-lichtmess
Tristan Höver
Senior Analyst
tristan.hover@euromonitor.com
https://de.linkedin.com/in/tristanhoever
© Euromonitor International
ALDI GROUP IN RETAILING (WORLD)
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