THE credit crunch has benefited Aldi as price-conscious consumers have flocked to the German discount chain, which says its sales have increased more than 40% in the past three months.
Aldi says sales are booming and its low prices have enabled it to increase its market share from 2.9% to 10%.
Analysts say the supermarket operates the leanest low-cost model in the world, with the key to its success being low levels of service a
nd even lower choice.
Senior management say the past three months have seen the biggest UK sales hike on record.
Markus Beher, managing director for Aldi Scotland, said more people were coming to the stores across the UK.
"The credit crunch has encouraged people to rethink their shopping habits, looking for premium quality products but at lower prices.
"People are having to make smarter choices when it comes to day-to-day living expenses, but they do not want to compromise on quality. At Aldi they get great quality but can save £20 to £30 on their shopping compared to the big four supermarkets. This has seen our sales increase by 25%."
Aldi and Lidl have been doing particularly well as consumers become more price conscious.
Aldi claims it is up to 20% cheaper than Tesco and Sainsbury as its distribution system is smaller and more efficient.
It stocks only 1,000 lines compared with 40,000 in a typical supermarket and sells a limited range of products, such as one type of shampoo.
Market research firm TNS says Aldi sales jumped 19.8% in the 12 weeks to August 10 on last year's levels, giving it a new record market share of 3%. Sales at Lidl were up 12.3%. Aldi is now the fastest growing grocery retailer in the UK, outperforming the big four, M&S, Netto and Lidl.
The German chain plans to invest £1.5bn in a five-year expansion plan in the UK, which will increase its portfolio of stores from about 400 to an eventual total of 1,500.
Beher added: "We are seeing a strong growth across a number of our lines and we are looking forward very much to extending our offering as we open more stores in Scotland – with four more due to open by end of 2008."
According to the latest official figures, food price inflation is running at 13.7%, with meat and bread prices up 16% on last year and vegetables up 11%.
The full article contains 419 words and appears in Scotland On Sunday newspaper.
