Aldi online launch seen as ‘major worry’: analyst

The discount supermarket announced the launch of online sales next year after a 30% increase in group sales but a 4% fall in operating profit in 12 months to December 31 2014.

Begbies Traynor partner and retail expert Julie Palmer described the results as “disappointing”​ but said shoppers still love the discounter’s growing range of products.   

‘Another string to its bow’​ 

“With new online sales channels launching in 2016, Aldi adds yet another string to its bow that will be a major worry to the likes of Ocado, Sainsbury and Tesco, who have so far been leading the way when it comes to home delivery,”​ she said. 

The grocer has announced plans to start selling wine by the case online from early next year, followed by non-food special buys in the spring. 

But Shore Capital analyst Clive Black said Aldi was not “exactly breaking new ground”​ by starting to sell wine, a long-life product, and general merchandise online. 

“Aldi seems to have caught the headlines with its aspiration to enter the UK eCommerce market,” ​he said. ​

‘Leading online retail market’​ ​

“Whilst so we sense it will be some time, if ever, that the German group starts making serious in-roads into what is one of the leading online retail markets in the world in the UK‎.” ​

Black said it remains to be seen whether or not Aldi would be able to offer an online grocery proposition in the future. ​

“With a limited range, low proprietary brand participation and low average basket sizes with keen prices, we’re not convinced that Aldi can offer a compelling grocery offer online; delivery costs could be debilitating to channel profitability. Time will tell,” ​he said. ​

Aldi UK & Ireland ceo Matthew Barnes described the online launch as another “exciting chapter”​ in the discount grocer’s development.​ ​

“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.”​

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