Electricals retailer AO is working with Aldi to help deliver its bulkier online orders.
Although Aldi does not offer a full online grocery ordering service in the UK, it does sell wine and spirits as well as a range of clothing, garden equipment, DIY and other ‘special buys’ online for home delivery. AO has announced a new three-year partnership deal to deliver Aldi’s larger special buys, such as barbecues, patio furniture and sports equipment, that require two-person home delivery.
David Barter, managing director of national IT at Aldi, said: “Our online Specialbuys are going from strength to strength and this partnership with AO will allow us to offer customers even more options for our larger products that require home delivery.”
The partnership follows a strategic focus by AO in recent months to offer a range of services, from logistics to recycling, to third-party retailers. AO.com is a Leading retailer in IRUK Top500 research, and the business also operates European sites AO.de and AO.nl. Aldi is a Top500 retailer in IRUK Top500 research.
“We are extremely proud of the award-winning logistics capability we have built here at AO,” said David Ashwell, managing director of AO Logistics. “There’s no better stamp of approval than other retailers, like Aldi, wanting to partner with us to help them deliver exceptional service to their customers.”
The update comes as Aldi reports its full-year UK figures for 2018. Sales in the UK and Ireland market increased by 11% to £11.3bn, as 800,000 more customers shopped with it. But pre-tax profits of £182.2m were down by 18% from the same time last year, reflecting a strategy to cut prices for shoppers while investing in infrastructure.
Aldi, which opened its first UK store in 1990 and now claims fifth place in the UK’s supermarket sector, plans to invest £1bn in stores and distribution centres in the UK this year and next, more than doubling store numbers inside the M25 from 45 to 100. In London it will open both standard stores and a range of new smaller Local stores on high streets across London. Currently Aldi operates 840 stores in the UK, but it aims to have 1,200 by the end of 2025.
Giles Hurley, chief executive, Aldi UK and Ireland, said: “Every day thousands of British shoppers are swapping and saving with Aldi thanks to our carefully-selected range of great quality products and our commitment to the lowest prices in grocery.
“While our expansion will continue to reach every part of the UK, we’re increasing our focus on London, where our market share is just 3.4% compared to 8.1% nationally. London shoppers regularly tell us they would switch to Aldi if there was one nearby, so there is clearly a significant growth opportunity for us in the capital.”
Image courtesy of AO World