This year, however, Aldi has not increased its market share and has sustained losses. In response, Aldi's executives point out that they are investing in the business. However, Aldi's inability to gain market share can also be seen in the light of the competitive pressures exerted by Tesco and the other major UK grocery chains, which are fighting back with price promotions and expanded private-label ranges that give price-conscious shoppers more reasons not to go to Aldi.
Guardian reports that, in fact, supermarket price promotions are at a high point, yet shoppers aren't necessarily buying those bargains; instead, they're trading down to lower-priced brands and private-label products.
So the question is, are consumers going to remain budget-conscious after the economy improves? Or will they trade up to top brands once they feel more confident in their incomes and buying power? And how will this consumer behaviour affect retailers?
