Discounters warned of being victim of success
Aldi made our list for a second time for less jovial reasons, when it was warned it could become a victim of its own success, along with fellow discounter Lidl, according to City analyst Shore Capital.
Aldi and Lidl could become “the person they tried to beat” if growth is mismanaged, Shore Capital director and head of research Clive Black warned in June.
“People don’t go to Aldi and Lidl for German biscuits, of course they don’t,” Black told the Federation of Bakers’ annual conference on June 2 at the Royal Armouries in Leeds.
“Shoppers go to the discounters to get cheaper fresh and chilled products, which means Aldi and Lidl have to stock more and more as they grow – becoming the person they tried to beat.”
Aldi and Lidl had increased their wastage as a result of stocking more fresh and chilled products, he added.
“They are now overtrading, there’s no doubt about that,” said Black.