Aldi Süd is reportedly poised to invest around €3.5 billion in ‘the biggest investment programme in the company’s history’, according to German trade-media outlet Lebensmittel Zeitung.
The paper reported that the investment will be used to bolster the retailer’s German store network by 2019, and it is likely to impact the group’s profits.
"[To implement this investment] we will temporarily and deliberately accept a slowed-down profit growth,” a company spokesperson told Lebensmittel Zeitung.
Making Improvements
The discounter has been active in recent years in rejuvenating its private-label range, expanding its marketing programme, and increasing the range of SKUs it offers – now up to 1,360 – however, the paper reported that Aldi plans to maintain its EDLP model going forward.
“We are and will remain a discounter,” the spokesperson said.
Elsewhere, Lebensmittel Zeitung also reported that Lidl has chosen to end its grocery e-commerce trial in Germany, having already scrapped its Lidl Express click-and-collect points at the start of this year. In August, the discounter appointed a new 'head of digital' to its German business.
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