Aldi reports record loss in Denmark – The Post

Aldi reports record loss in Denmark

German supermarket chain plans to open new stores despite the deficit

Aldi vows to continue its battle with Danish discount chains (photo: iStock)
June 2nd, 2016 12:49 pm| by Lucie Rychla

Aldi’s financial difficulties in the Danish market continue as the company announced yesterday a record loss of 297 million kroner for its last fiscal year.

Over the past five years, the German chain of discount supermarkets has accumulated a total loss of 945 million kroner in Denmark.

“Our revenue is growing and we have a good idea why our costs are increasing,” Thomas Bang, the deputy director for procurement at Aldi, told Ekstra Bladet.

“So naturally we keep going because we strongly believe there is a place for us in the Danish market.”

READ MORE: Aldi’s financial woes in Denmark continue

Victim of prejudices
According to Bang, some consumers unfairly accuse Aldi of underpaying its staff and selling low-quality products.

“It continues to upset us that we are being affected by prejudice,” Bang told  Ekstra Bladet.

The chain is currently in the process of modernising its network of stores, with plans to open new shops and renovate existing locations.

According to Henning Bahr, the head of Retail Institute Scandinavia, Aldi’s financial struggles are mostly down to the highly competitive market.

Along with Aldi, there are five other discount chains: Netto, Fakta, Rema 100, Kiwi and Lidl.