German supermarket chains Aldi and Lidl plan to open 171 new supermarkets in coming months to stand the business competition from ‘big four’ rivals. Aldi will open 93 new supermarkets while its German discounter peer Lidl will initiate 78 new stores.
As the new stores unveil competition will get fierce for the big four, namely Sainsbury’s, Tesco, Asda and Morrisons. To stay alive in the intense grocery price war the Big four also plans to instate more supermarkets. The four will collectively open 29 grocery stores in the coming months.
Studies reveal that the budget supermarkets account for fifteen percent of the total grocery market and are expected to increase its presence among middle class families.
Alidli announced recently that it would invest 1.5 billion in revamping and beautifying its stores. Meanwhile, Lidl plans to renovate its 623 supermarkets accross the country within next 3 years.
Lidl will continue their price cut system in all products in their store to lure in more consumers. The first batch of revamped Lidl stores will be in Rushden, Northamptonshire, Skegness, Worcester Blackpole, Nottingham Bingham and West Bromwich areas.
Managing director Ronny Gottschlich said that, ” ‘this is our vastest stride in the UK. We want to satisfy our existing customers and appeal would-be customers. This store will looks like the Lidl of the future. Our shopper feedback was not favorable. They believed our stores were not in line with what they envisage in 2015 any more.’
Last week Sainsbury revealed its half-year results where the total profit leaped to 17.9 percent to 308 million. Sainsbury Chife Executive Mike Coupe said that they where giving more importance to small convenience shops than large-scale stores.
Earlier this month Tesco suspended its plans to insatiate 14-supermarkets and sold the plots of land to property fund Meyer Bergam.