Cut-price supermarket chain Aldi is seeking to conquer the US market – building on its unprecedented success in Britain.

The German firm already has 1,600 American stores but plans to expand this to 2,500 – which would make it the third-largest US retailer. Aldi plans to add 400 more stores in America by the end of next year and it will also spend £1.3bn on redesigning 1,300 of its existing shops. The plans will create 25,000 jobs. (The Daily Mail)

The Financial Times’ Lex column sounds a note of caution, warning: “Aldi’s new approach involves an emphasis on fresh produce that sounds suspiciously like Tesco’s US plan — an experiment that racked up £1bn in losses. That was blamed on a failure to realise American customers like frozen produce, lots of choice and brands they know… Selling everything from milk to spades is also less of a novelty to US shoppers. The omnipresent Walmart, with stores 10 times the size of Aldi’s, is cutting prices to defend its 20% market share… Aldi can export its stores, but it should be wary of trying to export its price wars.” (The Financial Times £)

Morrisons has been criticised over ‘soft’ bonus targets and excessive boardroom pay. Chief executive David Potts could pocket £10m over the next three years after his long-term share award was increased from 240% of his salary to 300%. But Barclays’ analyst James Anstead described the targets for Potts to achieve his long-term bonus as ‘inexplicably low’ and ‘soft’. (The Daily Mail)

UK online grocer Ocado plans to raise £350m through a bond issue and changes to its credit arrangements to fund expansion of its facilities and develop its automated warehousing technology (The Financial Times £). Ocado is looking to raise hundreds of millions of pounds by launching bonds for the first time in order to fund expansion of its warehouse capacity and upgrades to its technology platform (The Daily Mail)

The FT’s Lombard column reckons Ocado is getting a reputation for massaging the message with their market announcements, drawing parallels with “estate agents recasting Acton Town shoeboxes as bijoux central London pied-a-terres”. In the 22 weeks to April operating profits were up 24%, but the group has changed its reporting calendar meaning on a like-for-like basis, growth was a less impressive 13%. (The Financial Times £)

UK household spending has fallen for first time since 2013. Squeezed British households have cut back their spending for the first time in almost four years, according to figures that underscore the pressures from rising prices and political uncertainty. (The Guardian)

The government should rethink its Brexit strategy, following last week’s election, according to the engineering industry organisation, the EEF. It said without a more pro-business stance, the resulting political instability may force more firms to alter their plans “away from the UK”. The EEF is the latest business organisation to call for a rethink of the government’s Brexit plans. (The BBC)

Messy political upheavals and questions about the prime minister’s authority sent currency traders scampering for cover again as markets digested the risks of a hung parliament. Sterling fell 0.97 cents against the dollar to $1.2644, its lowest level since April, as investors were left speculating about whether a minority Tory government would lead to a softer Brexit or a second snap election. However, employers appear to be taking uncertainty in their stride. Manpower Group’s survey of recruitment intentions for the coming quarter showed businesses still expect to take on staff. The reading of its survey was unchanged from the previous quarter at +5% (The Times £)

Criticism has been levelled at the UK competition authority for its decision to launch a deep investigation into the proposed merger of online food ordering businesses Just Eat and Hungryhouse. Submissions from the two companies have been published on the Competition & Markets Authority’s website criticising the watchdog for its decision last month to subject the proposed deal to further scrutiny. (The Telegraph)

The former chairman of Just Eat has died after a short illness. Takeaway industry pioneer John Hughes, 65, took a leave of absence less than two months ago to undergo medical treatment. (The Daily Mail)

Nestlé is still betting big in sub-Saharan Africa in the next decade — but not on the middle class, whose expected rise drove the company’s heavy investments on the continent in the years before commodity prices collapsed. Instead, the world’s biggest food and drinks company is switching its focus to lower-income consumers as the region grapples with its worst economic downturn in two decades. (The Financial Times £)

Reckitt Benckiser has set a date for the completion of its $17.9bn takeover of Mead Johnson, the US baby milk group for this Thursday June 15, which is sooner than expected. (The Financial Times £)

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