Aldi Nord Expands European Presence Amid Strategic Streamlining Efforts
Aldi Nord’s 2023 Sustainability Report highlights a 5.9% increase in net sales, driven by expansion in key European markets. Despite exiting Denmark, the retailer saw record growth in Poland, Spain, and Portugal. The company streamlined its assortment, increased private label focus, and expanded plant-based offerings, reflecting shifts in consumer demand.
Aldi Nord has published its Sustainability Report for the year 2023, highlighting a 5.9% increase in total net sales for the group, excluding Trader Joe’s in the USA. The retailer’s net revenue rose from €27.0 billion to €28.6 billion.
In 2023, Aldi Nord finalized a years-long company restructuring, setting the foundation for a turnaround strategy that aims for 6,000 stores across Europe by 2026. Key markets identified for growth included France, Poland, and Spain. While total store numbers fell from 5,430 stores in 2022 to 5,331 stores in 2023 due to the company’s exit from its Danish business that encompassed 188 outlets, specific regions saw notable growth.
Record Expansion in Poland and Spain
Aldi Nord reported record expansion in three primary growth markets: Poland, Spain, and Portugal. In Poland, store numbers surged from 251 in 2022 to 308 in 2023, marking an increase of 57 new outlets. Spain also saw robust growth, with store counts rising from 394 in 2022 to 437 in 2023, reflecting a net addition of 43 stores. In Portugal, the network grew from 122 to 141 stores over the same period, adding 19 locations.
In Aldi Nord’s home market Germany the continued optimization of its store network seems to have levelled out with the store count remaining almost stable at 2,202 outlets, one more than the year before. Only the French market, which had been earmarked as a growth area, saw a slight reduction from 1,321 stores in 2022 to 1,294 in 2023.
Streamlining Assortments Across Markets
The report highlights an increased focus on streamlining the assortment, reflecting an ongoing effort to align product ranges with sister company Aldi Süd as well as becoming more efficient in procurement and logistics. Across the group, the number of products in the standard assortment decreased from 1,938 items in 2022 to 1,867 in 2023. France and the Netherlands saw the most significant reductions, with item counts dropping from 2,407 to 1,798 and from 1,934 to 1,799, respectively. Conversely, Aldi Nord increased the standard assortment in Portugal, where Aldi is the 8th largest food retailer positioned against large supermarket operators, from 2,094 to 2,141 items.
Growing Emphasis on Private Label and Plant-Based Products
Aldi Nord’s focus on private labels has continued to intensify. The share of own brand products across the group increased from 80.9% in 2022 to 83.4% in 2023. This trend was especially pronounced in Poland, where private label share rose from 56.9%, the by far lowest value in the group, to 61.5%.
Organic too Expensive
Despite the retailer’s partnership with the Naturland organic farmers’ association in Germany, launched in May 2023, on a group level Aldi Nord saw a reduction of organic items, from 1,104 in 2022 to 892 in 2023. Contrasting this, Fairtrade-certified items increased from 332 in 2022 to 429 in 2023, while the number of vegetarian and vegan products rose significantly from 975 to 1,134 in the standard and special-buy product ranges. This development aligns with Aldi’s expansion of the MyVay private label line for plant-based products, aimed at capturing the rising consumer interest in climate-friendly and healthy diets.
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