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Aldi has revealed plans to launch an e-commerce operation in 2016 after another year of record sales.
The discount retailer said this morning that it will start by selling wine by the case online from early next year, followed by non-food ‘special buys’ in the spring, offering customers home delivery and click & collect.
Aldi said the move formed part of its long-term growth and investment strategy in the UK.
Group sales at the supermarket shot up 31% to £6.89bn in 2014, compared with £5.27bn in the previous year, as its footprint expanded at its fastest rate yet. The rise was the equivalent of £31m in extra sales revenue every week during 2014.
Operating profit, however, fell by £11m to £260.3m following increased investment in prices and staff.
Matthew Barnes, CEO of Aldi UK & Ireland, said the retailer “refused” to be beaten on price by anyone.
“We’re maintaining a significant price gap of at least 15% on an average basket of goods – people are seeing that value at the checkout, tasting the quality at home and coming back to do a full weekly shop, time and time again.
“As the grocery market continues to evolve, our unique model, operational efficiency, private ownership and financial strength mean we’re able to keep investing in our business – from people and presence to products and prices.”
Commenting on the group’s e-commerce plans, he added: “Our launch online is another exciting chapter in our story. This will enable us to introduce the Aldi brand and some of our best-selling, best-quality and best-value products to thousands more customers across the UK.”
Aldi also confirmed it now sourced 69% of its products from British suppliers, including 100% of its milk and its core range of fresh meat and fresh bakery goods.
“The past 25 years has been an incredible journey for Aldi in the UK,” Barnes said. “During that time, the grocery market has changed beyond recognition – and changed for the better. At present, there are still 47% of households that don’t shop with us. We’re hugely excited about the enormous scope for growth over the next 25 years.”
Morning update
Shares in SABMiller (SAB) have opened 3.8% to 3,724p this morning after media speculation over the weekend said an official bid from AB InBev was expected this week. The board of the Peroni and Grolsch owner has reportedly been pushing AB InBev on price but is thought to be receptive to the takeover offer.
Aquatic Foods Group, a Chinese marine foods and seafood processor and producer listed on AIM, has signed a one-year sales contract with Yihe International Corporation, a seafood wholesaler and high volume processor which supplies products to the US. The contract, worth $15.4m (£10.1m) is to supply Yihe with 11 separate seafood products over the course of one year.
City diary
It looks set to be a quiet week on the London Stock Exchange as far as scheduled company news is concerned.
The main attraction will be the Sainsbury’s (SBRY) quarter two trading update on Wednesday. Analysts expect the supermarket to report another drop in sales, but it will still stay ahead of its struggling rivals in the big four. Sainsbury’s top line for the past three months is forecast to be down 1.2%, but the estate of Sainsbury’s Local convenience stores should make the retailer “comfortably the best performer of the Big Four”.
Elsewhere, a general meeting of shareholders for Punch Taverns should prove to be the final hurdle for the Conviviality Retail (CVR) £200m reverse takeover of wine supplier Matthew Clark. Conviviality’s own investors voted through the deal last week and there is not expected to be any resistant from the Punch shareholders who should welcome the injection of cash.
There is also expected to be some official news from SABMiller (SAB) any time this week with AB InBev set to table a massive offer for the brewer.
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