Aldi invest in recession

Discount retailer Aldi has unveiled plans for a significant Irish expansion with 35 new stores and 650 new jobs over the next three years. The German owned group is also setting up its second Irish distribution centre which will be located in Mitchelstown, Co Cork, to supply outlets in the south of the country. Today, Aldi says it will spend €350m as it increases its presence in Ireland. It currently has 59 stores here and will open a further 17 by the end of next year.

Unlike conventional outlets discounters, Aldi and its rival Lidl, usually offer one brand of each product. They also have relatively low numbers of staff per store with Aldi employing an average of 14. Over the past decade the two discount retailers have grown their market share at the expense of existing players. Aldi says it has currently a 4.5% share of Irish grocery spending.

In recent months, as the Republic entered a recession for the first time in more than 15 years, the store has done particuarly well with the numbers of customers up 25% in October 2008 compared with the same period last year. The managing director of Aldi UK and Ireland Paul Foley new customers were "trying Aldi because they’re more conscious of seeking out value for money”. He said Aldi customers could expect to spend €60 less on a trolley of goods which would cost €200 elsewhere.