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15 May 2008

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Hard-pressed shoppers prove boon for Aldi

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Discounter Aldi claims to have seen footfall in its UK stores rise by 25% over the last three months compared with a year ago.

It said UK sales have now risen to £1.5bn a year, up from £1.3bn last year.

Aldi claimed its prices were 20-30% lower than rival supermarkets, meaning that Brits shopping there are saving £1m a day.

The discounter also claims a rise in customers from higher socio-economic groups, with the number of ABC1 customers up 17% and ABC1s now accounting for half its customers.

Aldi’s UK managing director Paul Foley, said: “Our research suggests that consumers seem fully aware that Aldi offers lower prices but they are now also realising that those savings don’t require any compromise on quality.”

He pointed to Aldi’s success in last year’s Quality Food Awards, run by the parent company of Talking Retail.

Aldi’s offer is almost 100% own brand.

It claimed prices were cheaper because its range, while being broad, is not deep. For example, it sells only one kind of tomato sauce.

Also, Aldi claimed its costs were lower because only three quarters of the price paid for a product in rival supermarkets goes to the producer, and the other quarter covers the supermarkets’ profits and running costs.

Foley added: “We just don’t have the unnecessary extras that are hidden on the bill by the big four supermarkets.

“For those who need a store with piped music, a choice of 42 yoghurts and who can’t pack their own shopping bag, then maybe Aldi’s not for them.

“But for those who want guaranteed quality at low prices every day of the week, then the current economic climate simply makes Aldi an even more obvious choice.”

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