The crowed field of discount supermarkets in the Danish market is resulting in record deficits for some chains and restructuring fo others.
Germany-based Aldi broke a questionable record last year bu posting a minus of 326 million kroner on its books. The company’s losses over the past five years are a staggering 1.35 billion kroner.
“We are of course not happy with the numbers, but there are good reasons behind them,” said Finn Tang, Aldi’s head of operations in Denmark. “We have chosen to close a large number of stores, which meant a large depreciation of properties and we have carried a large amount of non-food stocks, which are costly.”
Hard times in the aisles
A 4.5 percent rise in revenue over 2016 year was no where near enough to bring Aldi into the black as it competes with Fakta, Lidl and Rema 1000 in the jam-packed discount market. Aldi is remodelling many of its locations in an effort to gain an edge.
Aldi is far from the only chain struggling. Fakta recently announced that they will close 47 shops.