digibyte – Aldi set to offer online sales as it plans for UK growth
- Summary:
- Aldi has fared well during the economic downturn, but until has stuck to physical stores for its sales. It has now said that it will branch into the online world early next year.
Aldi, and its low-price competitor Lidl, have fared well during the economic downturn, as consumers attempt to save money on their grocery bill. Up until today's announcement Aldi had said that it would not be entering the online sales world because it was not perceived to be profitable enough.
However, given that the supermarket chain's latest results saw a 4 percent dip in operating profit, it's unsurprising that it is looking for new growth areas.
Aldi said that it will begin by selling wine by the case early next year, which will be followed by non-food special offers. Chief executive Matthew Barnes told journalists from the BBC and Reuters this morning that this does not mean, however, that it is inevitable that Aldi would launch food orders online.
In the last financial year Aldi has invested £878 million in its UK expansion and is on track to open up 65 stores in 2015.
Aldi chief executive Matthew Barnes said:
The past 25 years has been an incredible journey for Aldi in the UK. During that time, the grocery market has changed beyond recognition – and changed for the better. At present, there are still 47 per cent of households that don’t shop with us. We’re hugely excited about the enormous scope for growth over the next 25 years.
However, we at diginomica have been following the successes and failures of online retailers closely over the past few years – and if there is one thing that can be said with a degree of certainty, it's that it's not an easy game to be involved in.
Multi-channel commerce involves significant investment across a number of areas including front-end web, back office systems, supply chain, distribution, mobile, analytics and customer service. When you get all those pieces working together in harmony, a retailer can reap rewards. However, if let the ball drop on just one of them, reputations can be damaged.