Aldi Denmark has reported a full-year deficit of DKK 342 million (€46 million) in full-year 2020, an improvement on its 2019 performance, as the discounter continues to seek to "plug the hole", according to its CEO, Finn Tang.
The discounter's 2020 performance is DKK 170 million (€22.9 million), or 33%, stronger than the previous year, with revenue and earnings showing a 'marked improvement' over the course of the year, it said, while also noting the positive benefit of the pandemic on grocery sales.
'However, the positive development does not change the fact that Aldi Denmark is seen to deliver a significant deficit in 2020, it added.
Turnaround Programme
Aldi has found the going tough in Denmark in recent years, and is undertaking a major renovation programme, including the refurbishment of old or dilapidated stores, the opening of new stores, and the movement of some outlets to better locations.
This forms part of a business revitalisation plan instigated by CEO Tang in 2018 "to go from minus to plus", which is ongoing.
“After several years of challenges, we have succeeded in reversing the trend, so that in 2020 we deliver a result that is 33% better than in 2019," said Tang, who previously led Lidl's operations in Denmark.
"The revitalisation plan is following an expected timeline, and based on the investments and initiatives made during the financial year, the result is better than expected."
Aldi Denmark's stores remained open during the lockdown period, and this in turn created great "readiness for change", Tang added. "At the same time, they have managed to streamline operations, and this is clearly evident in the accounts."
He noted that the group's "primary goal" is to increase revenue, and that it continues to instigate a number of changes to its operations in order to deliver this growth, including making its operations more efficient and investing in technology.
Technology Transformation
"We really embarked on an exciting technological transformation in 2020," added Osman Kayhan, CFO of Aldi Denmark. "The investments we are making now must help to ensure that we become a profitable
business in the long run."
Aldi has had a presence in Denmark since 1977, when it was the first discounter to enter the market. Today, it operates 184 stores across the country, employing 2,800 people.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
