FOOD RETAIL
Falling profit no bar for Aldi to continue expansion in UK
London — Aldi is pressing on with its expansion in Britain despite a third consecutive year of falling profits there, the German discount supermarket group said on Monday, signalling no let-up in the pressure on UK rivals. The rise of privately owned budget chains Aldi and Lidl has transformed UK food retailing in the past decade, driving down the returns of Britain’s big-four players — market leader Tesco, Sainsbury’s, Asda and Morrisons. The big four have been fighting back by cutting prices, reducing multibuy promotions and improving service. For 2016, Aldi UK and Ireland reported a 13.5% rise in sales to a record £8.74bn. But operating profit fell 17%, to £211.3m, reflecting its strategy of maintaining a price gap over larger rivals as well as investment in infrastructure — mainly a large store-opening programme. "The owners of our business see such a huge potential for future growth in the UK market," Matthew Barnes, CE of Aldi UK, said. Discount supermarkets still account for ...
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