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 Aldi, which also posted a 4 percent dip in 2014 operating profit,
showing discounters are not immune from an industry price war, said
on Monday it will begin selling wine by the case online from early
next year.
That would be followed by non-food special offers, part of a
long-term growth and investment strategy in Britain. "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,"
said Chief Executive Matthew Barnes.
Aldi has offered online delivery of alcoholic drinks in Australia
since 2013 but has not previously entered e-commerce in Europe,
seeing it as not profitable enough.
Barnes told reporters a launch of Aldi's core food range online was
"not on the radar right now" and it was not inevitable the firm
would eventually do it.
Aldi and rival Lidl are the fastest growing grocers in the UK.
Almost half of UK households buying groceries visit Aldi or Lidl
every month, researcher Nielsen has said.
With their low price, limited assortment, low cost strategy they
have won share from Tesco, Asda, Sainsbury and Morrison, forcing
Britain's "big four" to cut prices, improve product quality and
boost customer service.
All four are competing for a share of the fast growing grocery
e-commerce market, with Morrison the last to go online when it
struck a deal with Ocado in 2013.
Grocery e-commerce in Britain is more advanced than elsewhere in
Europe, accounting for about 5 percent of sales and forecast by
researchers IGD to grow to 8.6 percent by 2020.
Analysts said Aldi's first move online will cause trepidation among
Britain's big four, already nervous over the possible launch of
Amazon Fresh in the UK.
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"Aldi adds yet another string to its bow that will be a major worry
to the likes of Ocado, Sainsbury’s and Tesco," said
Julie Palmer, partner at consultancy Begbies Traynor.
Aldi, Britain's seventh largest grocer with a 5.6 percent market
share according to researcher Kantar Worldpanel, made an operating
profit of 260.3 million pounds ($395 million) in 2014, down from
271.4 million the previous year, reflecting price cuts and higher
staff costs.
That profit fall came despite sales increasing 31 percent to a
record 6.89 billion pounds as the company opened new outlets. It has
598 stores in the UK and is targeting 1,000 by 2022.
While rivals are cutting capital expenditure, Aldi invested a record
438 million pounds in stores and distribution centres in 2014.
($1 = 0.6587 pounds)
(Editing by Li-mei Hoang and David Holmes)
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