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Aldi posts record sales but profits drop

Sales, however, increased 12 percent to a record 7.7 billion pounds, twice their level three years ago, as the discounter opened new outlets.

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In 2015, operating profits dropped by 1.8% to £255.6m (from £260.4m in 2014), which the grocer said reflected its continued investment in prices.

United Kingdom supermarkets are locked in a price war prompted partly by the success of Aldi and its German discount rival Lidl.

“Aldi has continued to win the trust of millions of new customers thanks to a single, simple and unbroken promise – to provide the very best quality products at prices that can not be beaten”, said chief executive Matthew Barnes.

Matthew Barnes, Aldi’s chief executive for the United Kingdom and Ireland, said it would keep cutting prices to stay cheaper than the big grocers. The new format includes newly-designed fixtures for beers, wines and spirits, fresh produce and baby and toddler, as well as a new food-to-go fixture. It said plans for 1,000 United Kingdom stores by 2022 were on track with 70 new sites scheduled for 2017.

More than 100 stores are expected to be refurbished in 2017.

“At the same time, we continue to deliver on our promise that whenever you shop at Aldi, you are paying the lowest prices in grocery”.

Aldi said its strongest-performing categories previous year included fresh meat and fish and its Exquisite wine range, while sales of its Mamia nappies grew by 29%, making it the UK’s second biggest-selling brand.

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Its share of Britain’s grocery market has risen to a record 6.2 percent as the country’s big four supermarkets – Tesco Plc, J Sainsbury Plc, Wal-Mart Stores Inc.’s Asda and Wm Morrison Supermarkets Plc – have all seen their market share dwindle.

Pic Getty