ALDI feels weaker demand for non-food goods in the UK

Hard discounter Aldi is celebrating the opening of its 400th UK store this week. The retailer is feeling the effects of the recession in the UK, with sales growth dipping below 20% chiefly because of weaker demand for non-food goods,

In the long term, the discount retailer
sees room for up to 1,500 stores in the UK and the Republic of
Ireland, where it runs more than 60 outlets.

Aldi makes just under a fifth of its
turnover from 'special buy' promotions of non-food goods which vary
with the season. However, sales of groceries, its core business,
remained strong and were comfortably outperforming rivals – even
excluding new store openings – despite the launch of a range of
'Discount Brands' by market leader Tesco.