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Improving premium offer drives Aldi’s strong Christmas

Aldi has set the bar high in the opening salvo of grocery results this week, with sales driven by its recently expanded Specially Selected premium range and Super 6 promotion on festive fruit and vegetables in the two weeks before Christmas.

Indeed, mince pies and a 30 day aged roasting joint were among its best sellers. The opening of new stores during 2016 also supported growth, however, Aldi has also stated that its l-f-l sales were “strongly positive”.

The future prospects for Aldi remain optimistic. Its heavy focus on price will continue to resonate with more constrained shoppers. The grocer has high hopes for its Specially Selected brand, with internal forecasts of £750m of sales from this range in 2017, as customers from other grocers trade down as well as encouraging existing shoppers to trade up. Improvements to store environment with over 100 stores set to be refurbished will create a stronger first impression for new customers. Aldi’s expansion, both in terms of stores, with the grocer aiming to open a further 70 stores in 2017, and in range, with plans to launch food to go, will also support growth.

Following B&M’s strong results announcement last week, early indications are that the value players were Christmas 2016’s big winners, with shoppers already bracing themselves for the challenging economic conditions ahead. With a continued focus on price and improving value perceptions, Aldi is well placed to maintain its momentum into 2017.

Source: Verdict Viewpoint 9 January 2017

January 2017

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