Aldi Denmark has received 2.7 billion DKK in six years
Aldi Nord continues capital injection to Aldi Denmark with a new supply of 200 million DKK in November. So far this year the Danish daughter has been given 400 million.
Despite many years of experience in the Danish grocery market, Aldi has a market share of only three to four percent. At the same time, the chain has lost money since 2009. In 2017 the deficit resulted in a loss of 326 million DKK.
In the last six years, the German company has received DKK 2.7 billion from the parent company in Germany, writes the Danish newspaper Politiken. The chain is especially pressed by market leader Netto.
Comprehensive Renewal Plan
Aldi Denmark is implementing a modernization plan, which means that more than 150 of the chain's 190 stores in Denmark must either be moved, expanded or modernized.
"The capital injection must be used to implement our strategy and is part of the ongoing revitalization plan. This implies, among other things, modernization of our retail network, and not least huge investments in our employees. We are pretty sure this can lift our position on the Danish market in the future," writes Thomas Bang, deputy director of Aldi Denmark, in an official statement to the press.
At the head of the revitalization plan is CEO Director Finn Tang, who has previously told Dansk Handelsblad, he cannot rule out investments amounting to more than 1 billion DKK in the coming years.
Deficit since 2009
Last year, Aldi Denmark came out with a record deficit of 326 million DKK this year, Aldi also expects a significant three-digit million deficit.
Aldi has not managed to make profits in Denmark since 2009 and has lost more than 1.5 billion DKK in the last 18 years – and counting.
Part of the problem is that the company has been in Denmark for 40 years, but the chain has only a market share of three to four percent. That is probably too low to reach break-even in today’s harsh trading climate.
Mr. and Mrs. Denmark
Aldi Denmark's current chief executive, Finn Tang, has been in the position since 1 September last year. He is not satisfied with most of his existing stores. They are either too small, too ugly or badly located, and most of them do not earn money.
"The analysis has been completed now, so we know which stores are fit for the concept would like to introduce to Mr. and Mrs. Denmark," says Finn Tang to Børsen.
Tang is, however, sure that Aldi Nord has more money to spend if necessary.
Sources: www.danskhandelsblad.no, www.finans.dk, www.bt.dk, www.politiken.dk, www.børsen.dk