Discounter Aldi more than doubled profit at its UK business in 2012, as it attracted 1 million more shoppers and increased the spend of its existing customers.
Aldi UK said today that it made a pretax profit of £157.9 million in the year to 31 December 2012, up from £70.5 million in 2011, an increase of 124%, as turnover jumped 40.6% to £3.89 billion.
Sales growth partly reflects the opening of 34 new stores during 2012, at a cost of £116.5 million. Aldi plans to invest a further £185 million opening 50 shops in 2013, with its 500th store set to open next month.
The firm also attributed growth in 2012 to a focus on local, British sourcing. The retailer's fruit and vegetable sales increased by over 49% in 2012.
Aldi is also attracting a broader demographic of shopper. According to market researcher Nielsen, almost one in three households now visits Aldi at least once a month, with the retailer's market share standing at 3.7%, up from 3.2% at the end of 2012.
"We have a simple low pricing offer that customers really understand and we don't try to confuse them with the likes of multibuy promotions," Aldi joint group managing director Matthew Barnes said.
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
