Aldi will stand up to Lidl and Mercadona with more private label and low prices

The German chain will close 2020 with 328 supermarkets and the objective of growing in market share in Spain.

Aldi prepares its strategy to grow in Spain with more private label and low prices

Aldi It reached the Spanish market in April 2002. It did so timidly and with a model based on the discount; something that the national market already knew years ago by Lidl, the eternal rival of Aldi (not only in Spain, but also in Germany). Almost two decades later, the company hits the table and accelerates its expansion after closing the year with 328 supermarkets. At the center of its strategy: private label, low prices and Madrid as a strategic location.

“We will close the year with more than 20 new supermarkets in Spain, which will mean end the year with 328 establishments, more than 5,200 employees and collaborators, and more than 350,000 square meters of commercial area in the country ”, indicates to Invertia Eduardo López, head of Aldi Expansion.

Today, “Aldi has a market share in Spain of 1.4% and there are already more than 5.2 million families who trust Aldi for their regular purchase ”, as recalled from the company through data from Kantar Worldpanel. A rankingin which there are six companies ahead, Alcampo being 3.4% or regional supermarkets such as Consum, their closest rivals to beat. Higher up, his eternal rival, Lidl (5.7%) and the leader, Mercadona (24.8%).

White brand

The objective of the chain “is to continue growing” through openings and at a rate of 20 per year, but also attracting the public. How? With a business strategy based on discount, price and white label.

Eduardo López, head of Aldi Expansion.

Eduardo López, head of Aldi Expansion.

“Our reason for being and our commitment to customers is the discount. At Aldi we dedicate all our efforts to developing our own brand, which represents 86% of our assortment, and this allows us to maintain high quality at very low prices. During the first half of 2020, Aldi’s own brand products represented 67% of the company’s total sales ”, explains the manager.

The German chain has an assortment of nearly 2,000 products and maintains agreements with more than 400 national suppliers. The national product represents 80% of the entire assortment. “Customers are increasingly opting for staple foods and private labels that allow them to make a complete purchase without having to allocate a large budget,” he assures.

Madrid

Inside of the Aldi’s expansion plan, the city of Madrid is, with 17 supermarkets, the town where the largest number of establishments are concentrated.

“At Aldi we are currently developing a strong expansion plan in Spain and the Community of Madrid and the capital are, of course, strategic areas for us.” Good proof of this is that they just opened a new supermarket in Colmenar Viejo on November 25 and another on December 2 in Guadarrama.

In recent years, its strategy has also focused on getting closer to the urban centers of municipalities and large cities. It should be remembered that when they landed in Spain their centers were on the outskirts of cities to facilitate a purchase made by car.

Now the habits have changed and about 60% of its new supermarkets have been in urban areas and city centers such as Madrid, Barcelona, ​​Seville or Valencia.

In this sense, “we believe that our growth plan in the capital still has a way to go”, they affirm. Of course, without ruling out continuing to expand its presence in other areas of Spain. This December it will open five stores (two in Catalonia, two in Andalusia and another in Madrid). And at this rate, Aldi will surpass 350 supermarkets in 2021.