A Comparative Analysis of Aldi and Lidl's Financial Performance

This report analyzes the financial performance of two major supermarket chains, Aldi and Lidl. It highlights Aldi's financial results, including an 11% increase in sales to £11.3 billion in 2018, but a decrease in pre-tax profits by 18% due to expansion and price cuts. The report also mentions Lidl's sales growth, which slowed to 5.2% due to increased competition from Aldi. The analysis includes references to relevant research and articles, providing a comprehensive overview of the current financial standing of both companies within the competitive retail market. The report provides key insights into the strategies and challenges faced by these companies, such as price competition and expansion efforts, and how these factors impact their profitability.

Current financial performance of Aldi and Lidl.

 ALDI is a discounted supermarket of UK which deals in various products from
groceries to household essentials.
 LIDL is also a retail supermarket having store chains in various locations. For
increase the number of its profits, ALDI cut the prices of its products which help
company in increase its sales.
Current financial performance of Aldi and Lidl.

Continue
 In 2019, sales rose 11% to reach £11.3bn in the year to 2018 but pretax profits
fell 18% to £182.2m (Aldi profits dive as firm focuses on expansion and price
cuts).
 Sales of ALDI products at German discounter increased by 11% which reach
11.3 billion pound in year 2018.
 On the other hand, sales of LIDL products slowed to 5.2% due to increase
competition from ALDI.

References
 Tidy, M., Wang, X. and Hall, M., 2016. The role of Supplier Relationship Management in reducing
Greenhouse Gas emissions from food supply chains: supplier engagement in the UK supermarket
sector. Journal of Cleaner Production. 112. pp.3294-3305.
 Draheim, M. and Franke, G., 2018. Employee Orientation and Financial Performance of Foundation
Owned Firms. Schmalenbach Business Review. 70(4). pp.375-410.
 Aldi profits dive as firm focuses on expansion and price cuts. 2019. [Online]. Available through:
<https://www.theguardian.com/business/2019/sep/16/aldi-profits-dive-as-firm-focuses-on-expansion-
and-price-cuts>

Thank you