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| Price cuts eat into Aldi profits | Price cuts eat into Aldi profits |
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| Aldi’s profits in the UK and Ireland fell last year after the discount supermarket chain was forced to cut prices to maintain its reputation for cheap groceries. | Aldi’s profits in the UK and Ireland fell last year after the discount supermarket chain was forced to cut prices to maintain its reputation for cheap groceries. |
| Operating profit dropped 1.8% to £255.6m in the 2015 calendar year. Sales rose 12% to £7.7bn as Aldi opened more stores. The German company does not publish like-for-like sales figures showing the performance of established stores. | |
| UK supermarkets are locked in a price war prompted partly by the success of Aldi and its German discount rival Lidl. After Tesco and other supermarkets cut prices, Aldi responded with its own reductions. | UK supermarkets are locked in a price war prompted partly by the success of Aldi and its German discount rival Lidl. After Tesco and other supermarkets cut prices, Aldi responded with its own reductions. |
| Matthew Barnes, Aldi’s chief executive for the UK and Ireland, said it would keep cutting prices to stay cheaper than the big grocers. He also announced a £300m investment to make its no-frills stores easier and more pleasant to shop in. | Matthew Barnes, Aldi’s chief executive for the UK and Ireland, said it would keep cutting prices to stay cheaper than the big grocers. He also announced a £300m investment to make its no-frills stores easier and more pleasant to shop in. |
| Barnes said: “We continue to deliver on our promise that whenever you shop at Aldi, you are paying the lowest prices in grocery. Regardless of what competitors may say or do, our price advantage will be maintained and our customers will always pay the lowest grocery prices in the UK.” | Barnes said: “We continue to deliver on our promise that whenever you shop at Aldi, you are paying the lowest prices in grocery. Regardless of what competitors may say or do, our price advantage will be maintained and our customers will always pay the lowest grocery prices in the UK.” |
| Aldi, which has 659 stores in the UK, said it had cut prices on 30% of products this year. The store revamps will include clearer signs, more fridges and new fixtures for alcoholic drinks, fresh produce and children’s products. | Aldi, which has 659 stores in the UK, said it had cut prices on 30% of products this year. The store revamps will include clearer signs, more fridges and new fixtures for alcoholic drinks, fresh produce and children’s products. |
| UK supermarket sales rose 0.3% in the 12 weeks to 11 September as warm weather and UK success at the Olympics and Paralympics increased spending on alcohol. Aldi, which sponsors Team GB, and Lidl continued to perform better than their UK rivals as sales rose 11.6% and 9.5% respectively. | UK supermarket sales rose 0.3% in the 12 weeks to 11 September as warm weather and UK success at the Olympics and Paralympics increased spending on alcohol. Aldi, which sponsors Team GB, and Lidl continued to perform better than their UK rivals as sales rose 11.6% and 9.5% respectively. |
| Barnes said Aldi would open 70 more shops in Britain next year as part of a plan to reach 1,000 units by 2022. It plans to refurbish more than 100 stores next year. |