Aldi Snapshot, February 2019 Retailer performance Trading priorities 2017 2018e % change Turnover (€ ex VAT) 91,906m 99,713m +8.5% No. of stores 11,277 11,704 +3.8% Sales area (sq m) 10,199,030 10,720,300 +5.1% Value proposition Achieved by pursuing EDLC and EDLP strategy: Functional store environment Limited, selective promotional emphasis Shelf ready packaging, mixed packaging Store renovation Both Aldi Süd and Aldi Nord are remodelling their stores in several markets (UK, Spain, Germany) to a new store concept which includes an expanded fresh category. Focus shifting to branded manufacturers While in the past it offered almost entirely exclusive private labels, Aldi Süd and Aldi Nord have undergone a marked step-change in its strategy regarding branded products, with new listings appearing in some countries. This leads to tough price competition. Store expansion in key markets Aldi Süd and Aldi Nord will allocate funds to store expansion in their key markets, namely USA, UK and Australia. Aldi Süd has accelerated its store expansion plan in the USA as a reaction to Lidl’s market entry, while Aldi Nord will open more stores in Poland. ‘Anti-globalist’ sourcing approach No more than 10% of Aldi’s grocery assortment is sourced on a pan-European basis. The majority of sourcing is conducted on a national basis and each operating market has its own central purchasing subsidiary that buys on behalf of its regional divisions. Key dates / forthcoming events: Aldi’s financial year ends in December As a private company, Aldi is not obliged to disclose detailed financial data Data includes Trader Joe’s in USA Source: IGD Datacentre estimates Sales & performance by region Turnover (EUR) m International & format priorities International: Aldi operates in multiple European countries as well as in Australia, China (online) and the USA. Aldi’s main focus will be expansion in its existing high potential markets such as the UK, USA and Australia. However, it has recently entered Italy and plans to also enter Romania. Formats: Aldi Nord operates a discount store concept with a limited range of around 1,500 SKU’s, c.90% of which are private label products. However, Aldi Süd has made its store concept more flexible, listing more branded products. In the UK, Aldi is testing a city format, catering to shoppers on the go with convenience-specific ranges and has launched e-commerce, whilst Aldi in Australia is rolling out a more premium looking discount store concept. © IGD 2019 Follow us on Twitter @RetailAnalysis

Aldi Snapshot, February 2019 New marketing initiatives See the full Aldi profile on Retail Analysis Read Must see stores Latest developments When? What? So what? January 2019 Aldi UK and Ireland has achieved carbon neutrality Aldi has announced that it is now carbon neutral across all its 900 stores and 11 distribution centres. In 2019 it will be offsetting the equivalent of 160,000 tonnes of emissions. Aldi Suisse opens a store to target on-the-go shoppers Aldi Suisse has opened its first ever store in a train station, in Lausanne. This is a new concept and location for Aldi Suisse. It shows how the retailer is becoming more flexible with its formats and locations. Record trading for Aldi at Christmas Aldi UK reported its best-ever Christmas, with sales close to GBP1bn sales for the month of December. Premium ranges were a key growth driver for the discounter. Veganuary: Aldi: providing affordable plant-based solutions On 2nd January, Aldi launched a range of new vegan products across its UK store estate. Additions include chilled ready meals, meals tailored to lunchtime missions, sweet snacks and cupboard staples. December 2018 Aldi UK: record day of store openings According to Retail Gazette, Aldi has opened eight new stores on the same day as it ramps up its store opening programme before the year end. Aldi Nord & Süd, Germany We have visited the latest stores from Aldi Nord and Aldi Süd in Germany, both demonstrating interesting developments for the retailer. Aldi, Austria We visited a range of discount stores in Austria. We compare in-store strategies between the leading discount retailers. Aldi Süd, Waterloo, Sydney, Australia This is an example of the retailer’s latest store format in Australia, showcasing a larger store footprint and new design features. See report See report See report Selected key executives Dr Marc Heußinger Aldi Nord Managing Director and Chairman of the Board Theo Albrecht Jnr Aldi Nord Board Member and co-owner Peter Ernst Aldi Süd Board Member and Joint Chief Executive Officer Max Hofmarksrichter © IGD 2019 Source: IGD Research, Aldi