Aldi is to spend £500m in the UK building new stores and refurbishing existing stores in a move that it hopes will turn its image into one appealing to middle Britain.
According to Tony Baines, MD for group buying, Aldi’s ambition is to tempt more upmarket customers into trying its products, hoping they will be pleasantly surprised and come back for more.
“For the last 10 years we haven’t got things right,” said Baines. “So this is the start of a campaign to improve our brand reputation and attract a different type of customer.”
Although Aldi will not be abandoning its discount
philosophy, the image upgrade is designed to encroach into the consumer bases of the likes of Tesco and Sainsbury. If all goes to plan, the result will be 217 more stores by 2010, taking Aldi’s total in the UK to 500, and a doubling of its current 2.3% market share. The south east in particular has been earmarked as ripe for development, and 30 new stores have been designated for the region this year. All new stores will be built to an updated design that will feel more friendly, said Baines.
The strategy has been broken down into three parts.
A £6m above-the-line TV campaign started on July 18 and is Aldi’s first for eight years.
It is being complemented by outdoor poster activity and newspaper advertising. Each of these elements heralds the catchphrase ‘Spend a little, live a lot’, and projects a higher quality image compared with previous marketing efforts, highlighting aspirational foods such as smoked salmon and Pinot Grigio wine. The other elements of the image overhaul are improving the quality and range on offer in-store; and improving store design, layout and decor.
Baines said: “We have already successfully shifted our customer profile in part, as witnessed by the increasing number of 4x4s in our car parks. But our image is still cheap and cheerful at the moment, so we want to say ‘have a look at us now, we’re more than that’.”
Around 20 stores in locations that do not fit the new strategy will be considered for closure, while 80% of the £500m will be spent on opening new stores at a rate of around 40 per year. The remaining 20% will be spent on refurbishing existing stores.
>>p40 Retail Spotlight
James Durston
According to Tony Baines, MD for group buying, Aldi’s ambition is to tempt more upmarket customers into trying its products, hoping they will be pleasantly surprised and come back for more.
“For the last 10 years we haven’t got things right,” said Baines. “So this is the start of a campaign to improve our brand reputation and attract a different type of customer.”
Although Aldi will not be abandoning its discount
philosophy, the image upgrade is designed to encroach into the consumer bases of the likes of Tesco and Sainsbury. If all goes to plan, the result will be 217 more stores by 2010, taking Aldi’s total in the UK to 500, and a doubling of its current 2.3% market share. The south east in particular has been earmarked as ripe for development, and 30 new stores have been designated for the region this year. All new stores will be built to an updated design that will feel more friendly, said Baines.
The strategy has been broken down into three parts.
A £6m above-the-line TV campaign started on July 18 and is Aldi’s first for eight years.
It is being complemented by outdoor poster activity and newspaper advertising. Each of these elements heralds the catchphrase ‘Spend a little, live a lot’, and projects a higher quality image compared with previous marketing efforts, highlighting aspirational foods such as smoked salmon and Pinot Grigio wine. The other elements of the image overhaul are improving the quality and range on offer in-store; and improving store design, layout and decor.
Baines said: “We have already successfully shifted our customer profile in part, as witnessed by the increasing number of 4x4s in our car parks. But our image is still cheap and cheerful at the moment, so we want to say ‘have a look at us now, we’re more than that’.”
Around 20 stores in locations that do not fit the new strategy will be considered for closure, while 80% of the £500m will be spent on opening new stores at a rate of around 40 per year. The remaining 20% will be spent on refurbishing existing stores.
>>p40 Retail Spotlight
James Durston
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