Discount supermarket Aldi has reported its sales were up by a quarter in 2008, as cash strapped consumers sought bargains.
Aldi defied the economic gloom to report sales of £2.15bn in 2008. Morrisons also did well, reporting its highest ever market share.
Their competitors did far less well – Tesco has just reported its worst Christmas in 20 years with like-for-like sales up only 2.5%. But Sainsbury’s did better, with sales increasing by 4.5%.
Aldi goes from strength to strength
Aldi says that half of its customer base is now from the middle-class ABC1 social category – up from a fifth seven years ago. It also increased its number of stores from 416 to 457.
Aldi’s market share remains small at 3.2% in November. However, this is up from 2.7% in the same month, in the previous year.
Supermarkets such as Tesco are increasingly taking note of the German retailer’s tactics – for instance, introducing branded discount ranges.
Paul Foley, managing director of Aldi UK, said that while the credit crunch had played a part in the increased sales, the chain still would have made gains ‘with or without the economic situation’.
Aldi said that it was able to offer cheap prices by stripping out unnecessary expenses and simplifying the shopping experience.
Zavvi and JJB hit by losses
While the discount supermarkets may be doing well in the current economic climate many high street stores are struggling. JJB Sports warned today that it could lose £10m this year due to the ‘extremely difficult’ trading conditions.
In turn, administrators for the entertainment retailer Zavvi closed another 18 stores with the loss of 353 jobs today.
If you have buy goods worth more than £100 from a company that goes bust you can claim the money back provided you paid with a credit card. see the Which? guide to the Consumer Credit Act for more information.
RSS news feed
For daily consumer news, subscribe to the here. If you have an older web browser you may need to copy and paste this link into your newsreader: http://www.which.co.uk/feeds/reviews/news.xml . Find out more about RSS in the Which? guide to news feeds.