GlobalData says Aldi is willing to fight for space in the lucrative convenience market
Following the launch of discounter Aldi’s Local format last week in South London, analysts are forecasting a rapid nationwide rollout. The Local outlets are planned to be about a third of the size of the regular 19,000-sq ft Aldi stores.
Thomas Brereton, retail analyst for GlobalData, said: “While this is currently only a trial for Aldi, we believe it has a strong chance of success, engaging consumers on the key drivers of both price and convenience.”
He added: “Although the ability for the discounters to gain new loyal UK shoppers is beginning to slow as they struggle to find new locations that do not cannibalise sales, this move shows – for Aldi at least – a desire to expand into the faster growing channel of the convenience market, which grew 4.1% to £33.6bn during 2018 compared to 3.2% for the overall food and grocery market. Convenience growth remains largely driven by an increase in the number of consumers doing high frequency, low value food shops, particularly prevalent amid the 25-34 age group.”
