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Aldi is to hire 5,000 more staff in the UK alone this year and has announced plans to open 80 new stores.

After this expansion, the discount supermarket will have 700 stores and more than 32,000 employees in the UK.

The discounter is the UK’s sixth-biggest supermarket, owning 5.6% of the market share in the 12 months to January, according to analysts at Kantar Worldpanel. As well as this, the company has doubled its market share in the last three years.

Due to the discounted supermarkets being such a success, the big four supermarkets were pushed into a price war.

Jobs available include managers, stock assistants and store staff. Aldi also now owns more of the market share than Waitrose and Lidl.

Tesco shares rose by 1% on Monday, and Sainsbury’s and Morrisons both added more than 3%.

The discounter supermarkets Aldi and Lidl have taken another step towards victory as their joint grocery market share now stands at 10%.

Analysts Kantar Worldpanel said that Aldi’s market share was 5.6% in the 12 weeks to 8 November and Lidl’s 4.4%, showing that their joint market share has doubled in the last three years.

The discounters are on the rise but Sainsbury’s has now taken the second spot below Tesco, meaning it has had an increase in sales and is now ahead of Asda.

Sainsbury’s owns 16.6% of the UK grocery markets but Tesco still remains the UK’s largest supermarket with 27.9%.

Asda has taken a tumble as sales fell 3.5% in the latest quarter from the year before, which is more than any of its main competition. The supermarket has 16.4% of the market share.

Due to the continuous growth from the discount chains, the big four supermarkets have resulted in a price war against each other.

It could be difficult for supermarkets to compete with Aldi, whose sales rose 16.5% in the latest quarter compared to the year before, and Lidl whose sales increased 19%.

Tesco’s sales declined 2.5% from the year before while sales at Morrisons fell by 1.7% but sales at Waitrose and the Co-operative have increased.

Supermarket chain Tesco have announced a further big fall in profits.

Tesco is one of Britain’s biggest retailer but its profits have more than halved over the first half of its financial year, crashing from £779 million to £345 million.

The loss comes a week after rival supermarket Sainsbury’s forecast a better than expected full-year.  Tesco has been at a price war with other rival supermarkets and many of these chains have been hit by the rising popularity of discounters Aldi and Lidl in recent years, with their shares being eaten away by the two chains.

The new national living wage will add to costs faced by the businesses with Tesco confirming it will cost around £500 million to hike its wages to meet the £9 an hour minimum by 2020.

The Chief Executive, Dave Lewis, said that they already pay more than the £7.20 minimum wage, which is being bought in under the National Living Wage plans next April. He added that the extra staff benefits already brought its hourly rate closer to £9 an hour.

The discounters rise again as Aldi UK will launch online sales next year because it announced record annual sales in 2014.

Aldi is currently the UK’s sixth largest supermarket in terms of market share but that could be about to change when it starts selling wine online and non-food offers in the spring.

The German discounter stated that sales rose 31% to £6.9 billion in the 12 months to 31st December, which is way ahead of last year’s figure of £5.27 billion. Aldi plans to open 65 new stores this year and already has 598 stores in the UK.

Despite the good news for the supermarket, operating profits did fall to £260.3 million from £271.4 million.

Customers will also benefit from having a home delivery option and collection from third party locations.

Aldi is slowly climbing up the market and this could be another breakthrough for the discounted supermarkets as they are gradually providing the services that the big four already do.

 

Many customers will walk into shops and wonder why Christmas stock is out already, especially considering that Halloween hasn’t come and gone yet. Cards, jumpers, advent calendars, you name it and it is likely that somewhere it’s already being sold 3 months ahead.

There will be many struggles over Christmas for customers such as busy periods and not being able to shop with ease, not knowing what to buy someone else or even trying to find the right priced shops can be difficult. The main realisation over Christmas however, may not be the problems customers face but instead, it’ll be the supermarkets.

The German discounter supermarkets such as Aldi and Lidl are already on the rise and with Christmas coming, who knows how much profit they will make compared to the big four. It is safe to say that Tesco, Asda, Sainsbury’s and Morrisons may have been in the lead once and still are but they are also gradually losing sales growth.

Aldi and Lidl provide much cheaper alternatives and it is getting much more difficult for the bigger supermarkets to compete with low prices. Christmas especially will be a time when people want to stock up, buy presents and get more for their money and the discounter supermarkets will be the place to get better value. Lidl has already started selling advent calendars and boxes of Quality Streets and if anything, they will be cheaper even if it is by a few pence.

The discounters are not just beneficial for the customers but also for employees. Recently it was announced that from October, Lidl would be the first UK supermarket to pay the minimum wage as recommended by the Living Wage Foundation. Employees would earn a minimum of £8.20 per hour across England, Scotland and Wales. However, in London they would earn £9.35 per hour. To add to that, Lidl also said that if the Living Wage Foundation were to change this in its annual announcement in November, it would adjust the minimum wage again.

There will always be room for the more expensive supermarkets such as Waitrose because not everyone goes for the cheapest price. However, the majority wants quality and if the discounters can provide that, there is no reason why they wouldn’t come out on top.

Nine hundred jobs are at risk because the supermarket chain Morrisons made the decision to close 11 stores in effort to transform the company’s fortunes.

David Potts, who started working as the chief executive in March, stated that it is with regret that stores may close. However, the chief executive also stated that the closures mainly involve the smaller-sized supermarkets. The locations of these have not been revealed due to staff still being informed.

As well as this news, the business reported a 47% drop in half yearly profits before tax of £126 million.

Morrisons will sell 140 loss-making “M” local convenience stores however, this will be rebranded as “My Local” and the staff will be kept on with some 200 jobs to be created.

The big four supermarkets are under a lot of pressure because of rival discount stores such as Aldi and Lidl gaining more customers.

The changes that Morrisons are making could either help in making sure that the remaining stores are improved and make more profit, or it could go in the opposite direction.

The future of supermarkets is still unknown as all companies are attempting to get the best deals in for their customers. The problem is that the discounters are on the rise and many customers go there for their weekly shop and only go to one of the big four supermarkets for particular products.

Aldi is creeping up behind the big supermarkets by sharing plans to open 130 new stores as part of a £600 million UK expansion.

The discount supermarket plans to hire 8,000 more staff, increasing its UK workforce to 35,000 by 2022.

It is gradually earning more of the UK market share and in April, overtook Waitrose as the UK’s sixth-biggest supermarket. Aldi now has 5.3% of the market share.

With one year to go until the Rio 2016 Olympic Games start, Aldi has already launched its campaign as an official GB partner and because of this, the supermarket has recruited six Team GB athletes. This includes Nicola Adams who is the world’s first female boxing Olympic champion.

Tesco’s UK stores has reported a slower rate of decline in sales thanks to its plan to stem the number of customers choosing discounter stores such as Lidl and Aldi. The business has made progress as UK sales only fell 1.3% for the three months to the end of May, which is lower than the 4% drop a year ago.

Analysts were also proven wrong as they forecast Tesco to make a fall of 1.6%-3%. The UK result is an improvement on the 1.7% fall that was reported in the fourth quarter of the financial year.

In April, the supermarket giant reported a huge loss, making that result the worst in its history. Mr Lewis took over the helm in September and is still trying to revive the company but it will take time. It has not been a good year for Tesco and the loss it made was one of the largest in UK corporate history as it reported a full-year pre-tax loss of £6.4 billion. It also said that 43 of its stores would close because around £4.7 billion of the losses were the result of the fall in property value of its UK stores.

However, these issues are slowly being resolved and Tesco could be on the rise again.   Including its international businesses, group sales did drop 1.3% in the quarter, which is better than a 3.4% dip a year ago.

The UK’s fourth largest supermarket Morrisons is cutting its prices of 200 items by up to a third. The firm has said that many everyday products will be cut in price and this is an attempt to fight the battle between the big four supermarkets and discounter stores such as Aldi and Lidl.

Aldi and Lidl has become a main supermarket for many and Morrisons, Tesco, Sainsbury’s and Asda are paying the price for not only the rise of these discounted supermarkets, but also the rise of online shopping. Morrisons has been hit particularly hard and plans to cut the price of four pints of semi-skimmed milk by 11%, pricing it at 89p whilst also lowering the price of some bread brands by around 21%.

2014 was a bad year for Morrisons as its profits halved, which meant that this was their lowest level for eight years. Despite this, the supermarket said it would commit a billion pounds over the next three years to lowering prices, which should make consumers happy. This was a move that rival firm Asda also made, as it committed £300 million to lowering prices in the first three months of the year. Not only this, but Sainsbury’s continues to invest £150 million to reduce the cost of 1,000 products and Tesco is dropping prices on 2,500 products as well.

Compared with 2014, a typical basket of day-to-day items is now 2.1% cheaper and all the major retailers offer cheaper like-for-like goods, according to analyst Kantar Worldpanel.

Although the big four supermarkets are doing all that they can to stay in power and compete in an ever-growing market, Aldi and Lidl are gradually gaining more of the market share. Lidl has captured 3.9% of the market share, which is a new record high for the company and Aldi has increased its share to 5.4%, according to Kantar figures up to 24th May.

Hastings has welcomed a new Aldi store recently in Ore which is one of 60 that are part of the new expansion plans in the UK. As the rising supermarket celebrates its 25th anniversary in the UK, they are getting ready to take over the grocery market share and up their game against the established supermarket giants.

supermarket bannanas

The rise of discounter supermarkets such as Aldi and Lidl has changed the way consumers buy their food because every customer, no matter the demographic, is now looking not just for a cheaper alternative but a more transparent and simpler shopping experience.

The “big four” which includes Sainsbury’s, Tesco, ASDA and Morrisons have been showing a slump in sales and as a result have had to close stores to compensate for their damaged balance sheets.

Aldi’s plans are ambitious as they hope to open a further 1.02m sq ft of shop space by 2022, which equates to around 1000 stores.

The German discounter store has now become the sixth biggest supermarket in the UK after knocking the long-established business Waitrose, who is in partnership with John Lewis, off their post. Aldi now takes 5.3% of the market share whereas Waitrose has 5.1%.

The main four supermarkets are being squeezed from both ends, seeing their profits fall from high-end supermarkets such as Waitrose and Marks & Spencer attacking from the top and Aldi and Lidl from the bottom.

Aldi has gained growth as shoppers have tried out new stores to save money due to prices rising at other supermarkets.

As part of the fightback, the popular supermarket chains now offer price comparison to keep customers returning. Tesco call theirs the ‘Price Promise’ and compare against all three big supermarkets, Sainsbury’s one is ‘Brand Match’ where they only compare with ASDA who in turn call theirs the ‘Price Guarantee’ and they compare with Waitrose as well as the other three main stores. Morrisons use a ‘Match and More’ card which not only compares with the three big supermarkets, but also Aldi and Lidl.

Customers will receive coupons or money off their next shop if they could have saved money at another store.

This system only works with the top four supermarkets comparing against each other, excluding Morrisons, and this could be why customers choose the cheaper option, as they know they are guaranteed a cheaper shop.

Consumers now use Aldi and Lidl for their main weekly shop but still buy products from the larger supermarkets if the cheaper chains do not stock them.

ASDA is owned by the global discounted store Wal-Mart, who is the biggest company in the world by value, which means that the business is able to lower prices to attract customers away from Tesco and Sainsbury’s.

ASDA currently has 17.1% of the market share, still behind Tesco at 28.4% but with Tesco’s recent problems of falling profits and extra store closures, ASDA could sneak in up to top if the German discounters do not beat them to it.

Whichever way you look at it, the market is definitely changing and it’s doing so rapidly as more consumers vote with their wallets.

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