Aldi plans big ex­pan­sion

The Star Early Edition - - BUSINESS REPORT -

GER­MAN dis­count gro­cery chain Aldi North was plan­ning to spend more than €5 bil­lion (R74.53bn) to re­vamp its stores around the world, which would be its big­gest in­vest­ment pro­ject ever, Ger­man weekly Bild am Son­ntag re­ported, cit­ing com­pany sources. Aldi and its Ger­man dis­counter ri­val Lidl have be­come gi­ants in Euro­pean re­tail, up­end­ing Bri­tain’s gro­cery re­tail mar­ket, and are chal­leng­ing US re­tail­ers as well. Aldi North’s sis­ter chain Aldi South an­nounced plans last month to in­vest $3.4bn (R44.38bn) to ex­pand its US store base to 2 500 by 2022, rais­ing the stakes for ri­vals caught in a price war. Bild am Son­ntag said yes­ter­day that Aldi North planned to fi­nance its multi-bil­lion-euro in­vest­ment from ex­ist­ing cash rather than by tak­ing on debt. But the pa­per said the pro­ject still needed the ap­proval of one of the three foun­da­tions that con­trol the com­pany.

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