Top 14 UK retailers: multiple opportunities

10th October, 2016 by Arabella Mileham - This article is over multiple pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

7. ALDI
Stores: 620+

Buyers: Two wine, one spirits and beer
Range: c.80 in-store, 117 online
Average bottle price: below £5
Volume wine sales: 90m bottles, + 6.5% by volume and +6.2% by value in the last 12 months, it says
BWS market share: 5.3% vs 4.7% grocery, (index 112.8%) value yoy +5.8%

4

Aldi has continued to disrupt the market, launching its wine-by-the-case website in January and making others retailers rethink their pricing strategy. Its £4 and under price point for wine is its key strength and an area where it has gained further ground this year, with the price bracket now accounting for just under 15% of take-home sales, according to KantarWorldpanel.

Wine buying director Mike James oversees a tight core range of around 80 wines where every product has to earn its place. Online gives flexibility for different wines: for example its Châteauneuf-du- Pape Cuvée 13 was added to the 117- strong portfolio. Although the average price of a bottle remains below £5, the Lot Series was launched in 2015 to cater for the increase of ABC1 customers and sold out within eight weeks (the Pézenas sold 10,000 bottles in the first week), prompting further seasonal launches.

“It provides us with a halo with which to showcase the provenance, artisan nature and quality of our wines that we sell,” says James. Meanwhile its premium tier Exquisite sells on average 100,000 bottles a week.

Clever promotion is boosting its profile as a serious wine retailer. Its sponsorship of London Wine Week and futuristic pop-up store helped make its wines more visible in the key South East. Nearly a third of its online customers are based in London and online sales rose 41% as a result. Boosting its estate by around 83 stores within the M25 is a canny move to push market share even higher.

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