Aldi is launching online shopping in 2016 taking on Tesco, Sainsburys, Asda

On September 28, discount supermarket Aldi UK said on Monday it would launch an online operation in 2016, initially selling wine, as it posted a dip in 2014 operating profit, reflecting increased investment in prices and people.

Aldi said its operating profit fell to 260.3 million pounds ($395.2 million) in 2014, down from 271.4 million pounds in the previous year.

Rumours of Aldi's move into the ecommerce space first surfaced earlier this year in the German press, reporting that the UK would be an ideal initial expansion, as it had grown quickly to make up nearly five percent of the company's total sales. It will offer customers a choice of home delivery or collection from pick-up points.

Net assets stood at £2bn, an increase of seven per cent, which the supermarket said would underpin further investment in the UK market.

Chief executive Matthew Barnes said Aldi was maintaining a price gap of at least 15% with rivals on an average basket of goods and offering high quality, driving customers to come back "time and time again".

"As the grocery market continues to evolve, our unique model, operational efficiency, private ownership and financial strength mean we're able to keep investing in our business - from people and presence to products and prices".

The company also said it is on track to open 65 new stores this year.

With their low-price, limited assortment, cheap strategy they have been winning share from market leader Tesco, Asda, Sainsbury and Morrison, forcing Britain's so called "big four" to cut prices and improve product quality and customer service to stem the loss of shoppers.

 

Last year, the business created 7,000 new jobs and has paid £57.9m of tax for the same period. "We're hugely excited about the enormous scope for growth over the next 25 years". Aldi will sell all its in-store wines on the internet and some wines will only be available online.

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