Friday 6 January 2017

The war of the supermarkets

2016 was the year of the supermarket wars as low-cost options Lidl and Aldi forged ahead in market share amid losses from some of the big four UK supermarkets, and it looks as though the trend is set to carry on in 2017.

Aldi's latest announcement that they will increase the minimum wage of their workers above the national living wage (thereby claiming that their employees will be the highest paid in the sector) is set to further increase their popularity. Looking at this from a business perspective (not ignoring that this may just be a genuinely magnanimous move), this is an excellent marketing strategy. Not only does is create goodwill towards the brand, but it also brings into question the actions of the other supermarkets. If Aldi can provide good quality products to consumers for a low cost (based on the fact that they regularly perform well in industry awards) while also paying their staff well, then why can't or don't their competitors?

The war of the supermarkets might be ongoing, but Aldi definitely seems to have won this battle.