Discount chains driving supermarket growth

Competition in the grocery sector remains fierce with the big four supermarkets engaged in a price war, both amongst themselves and with the discount chains. 

However the discount chains continue to grow market and are strengthening their store networks. 

Aldi’s latest results show that it has grown its turnover by 12% over the last year, although fierce price competition resulted in a 1.8% drop in profits. The supermarket chain remains committed to growing its share of the UK grocery market. It is planning to open 70 new stores in the UK next year as part of plans to increase the number of its outlets from 659 to 1,000 by 2022. In addition it is planning to refurbish 100 existing stores. Furthermore to support the expanded network of stores, Aldi is planning to expand two of its existing distribution centres and to build a new one in Cardiff.

Glengian’s data reveals a firm development pipeline of supermarket projects as the discount chains press ahead with their expansion plans. The value of supermarket projects securing planning approval topped £1 billion last year. Whilst data for the first eight months of 2016 suggest that the value of approvals will slip back this year, the number of projects securing approval is set to top 400 stores this year.