The 3 key things:

Aldi have flourished in the UK in recent years.  Sales continue to grow, up 18% in the latest three months from Kantar. And whilst a busy store opening program has undoubtedly helped, Aldi (and Lidl) have strengthened their offer to shoppers and this has had a huge impact on the UK market.

That much everyone knows.  But how are they doing it and what can be learnt from them?  Here are three things.

First, they have a clear and consistent proposition.  Ask pretty much anyone familiar with Aldi, what they do, and you will get a similar answer. “They offer great value for money, and actually the quality’s surprisingly decent”.    People know this because Aldi talk consistently and they walk the talk consistently.  On value for money, they talk with “Swap & Save” (side by side comparison with brand leaders).  They walk the talk by delivering great prices, via a low cost model.  On quality, they talk about third party Quality Awards.  They walk the talk by setting challenging product specs across the range and, recently, by increasing their focus on the Specially Selected premium range (look at Specially Selected Pizza as an impressive example).

Second, they stick with what works. Once they find something good, they resist the temptation to meddle. Most Aldi stores look the same, with the same shape and flow.  They know the configuration is a proven winner. And Aldi initiatives stay the same, as long as they are working.  Super 6 is an example – six items of Fruit and Veg at one low price, week in, week out.  More recently, a further six items in Meat and Fish.  Shoppers like Super 6.  It has been a major factor in Aldi’s success, and a major headache for their competitors.  So Aldi keep doing it. They don’t get bored.  They don’t try to be fancy.  They don’t mess with the formula.

Thirdly, they give reasons to visit soon, which is a lot more effective than giving reasons to visit some time.  Every Thursday and Sunday, new Special Buys arrive in store.  Lines that are not normally available, here on a “once they’re gone, they’re gone” basis.  Normally seasonally relevant – for instance in the week of writing, the theme is Gardening.  Special Buys play on the “scarcity principle” (the psychological impulse to covet the rare, the fear of missing out) and they can attract significant store traffic on launch days.  They are a reason to visit soon.  Aldi make sure to tell shoppers about upcoming promotions as they leave store (via leaflets) and via their App.  This is such a simple and efficient way of encouraging “next week’s shop”, that I find it hard to understand why other Grocers don’t invest more into it.

So three things we can learn from Aldi.  The power of a clear proposition, reinforced consistently.  Sticking with what works and not getting bored.  Giving reasons to visit soon rather than reasons to visit some time.  Simple things, but when applied with discipline, they make a big difference.