In the News

Retail Competition - Why Aldi Is a Threat to Supermarkets

Geoff Riley

10th November 2023

The Wall Street Journal has looked at the rise of Aldi in the US, highlighting the ways that the German discounter has become the fastest growing chain.

You should hopefully be aware of its strengths: a narrow product range, a real focus on reducing costs and offering value for money, particularly Aldi's ability to leverage private label brands. The flip-side of this is that Aldi's reputation for cleanliness isn't on a par with other stores.

  • Private label brands are products that are manufactured and sold exclusively by a retailer, rather than by a national brand.
  • These products are typically less expensive than their national brand counterparts, since the retailer doesn't have to pay for advertising or brand recognition.

There are a ton of private label brands in the UK, including:

  • Asda: George and Just Essentials
  • Co-op: Honest Value, Irresistible, and GRO
  • Lidl: Lidl UK, Lidl Deli, and Lidl Ireland
  • Morrisons: Morrisons The Best and Morrisons Savers
  • Ocado: The Collection, and Smart
  • Sainsbury's: Taste the Difference, By Sainsbury's, and Little Ones
  • Tesco: F&F Clothing, Tesco Everyday Value, and Tesco Finest
  • Waitrose: No.1, Essential Waitrose, and Waitrose Duchy Organic

These brands cover a wide range of products, from groceries to clothing to homeware, offering shoppers affordable options and retailers increased profits.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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