Aldi Ireland boss on reasons for success
The Managing Director of Aldi UK and Ireland, Paul Foley, in a recent press interview, has said that the discounter’s share of the Irish market is increasing and the reason for this is simple, ‘‘You will save EUR60 (USD86.34) or EUR70 (USD100.77) on a EUR200 (USD287.81) weekly shop." Aldi does not offer a sophisticated shopping experience and while Foley concedes that his stores do not offer an extensive range, he is adamant that they offer household staples. ‘‘I challenge anybody not to be able to do their full shop with us. What I have to admit is that you have to buy my version and if you’re wedded to a particularly unusual recipe I may not stock a particular herb, or whatever," he said. By buying in large quantities, Aldi is able to offer lower prices. ‘‘Often the product travels through the supply chain, arrives in the store, and the first person to touch the product is the consumer," according to Foley. ‘‘Take a bag of flour, for example. If you went to one of the traditional supermarkets you would be offered about ten different types. When you have more versions you need a bigger store. Bigger stores cost more money to build, run and maintain. The consumer pays a lot in other supermarkets for the choice in the one product." Foley is also anxious to highlight Aldi’s claim that 40% of products stocked on its shelves are sourced from Irish suppliers. ‘‘I think people will be surprised by that," he said. ‘‘When we came into this market, we had to ask manufacturers to present the product in a specific format. That often meant changes in the factory, and that required investment. When I come along with one store, you can imagine how there were suppliers who need a certain return for that kind of investment. But with 59 stores, we have reached that kind of tipping point."
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