Tesco vs Aldi

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The UK supermarket showdown between Tesco and Aldi, two major supermarket chains in the United Kingdom. Tell us your thoughts on which supermarket you think is better!

TESCO
TESCO is a supermarket chain and a multinational grocery retailer with its headquarters in Hertfordshire in United Kingdom. It is the second largest retailer in the world in terms of profits earned after Wal-Mart. It was established by Jack Cohen in the year 1919 and started modestly as a market stalls’ group. Since the last two and a half decades, TESCO has diversified geographically and spread its activities to retailing of clothing, electronics, books, toys, furniture, software, petrol, telecom, financial and internet services.

ALDI
This group could be traced to as early as 1913 when the German Albrecht family (Brothers Theo and Karl along with their mother) started a small shop in an Essen suburb which went on to become the famous Albrecht Diskont store and got its name shortened to AL-DI.

The concept of selling taken out by these brothers was quite new at that time and it revolutionized supermarket sales with the technique of subtracting the legal rebate allowed to the maximum at 3% before the point of sale. The co-operatives were the market leaders during this time and they had required their customers to gather rebate stamps and to send them at periodic intervals to get their money reclaimed.

ALDI has recently opened its 500th store and commands a market share of almost 4% in the supermarket business.

Key points to consider

Price Comparisons –
(keep in mind this is just a random snapshot of a few products from ALDI and TESCO based on listed prices online. We offer no guarantees about the accuracy of the prices and they are of course subject to change at any time. )
Village Bakery Wholemeal Bread – Aldi – 55p / Tesco – 78p
Pack of 20 sausages – Aldi – 99p / Tesco – 1.50 GBP
4-Pack Bavaria Premium Beer – Aldi – 1.69 GBP / Tesco – 2.00 GBP

ALDI’s pricing plan has got the better of TESCO rates in the majority of sectors. It is a message that is being sent by ALDI that it is a growing chain with very competitive prices and this business plan sounds very good to the shoppers in the United Kingdom who have been facing several years of austere measures and low increments in their wages for some time. ALDI is focusing on simplicity and price at the moment against the backdrop of living standards that are falling by the day. It has attracted the attention of many grocery shoppers. ALDI has been slowly able to grab the discount market share from TESCO on a week to week basis (Source: Guardian). They may not have all the major brands but can go pound for pound with TESCO.

TESCO is, however, still leading the local market in the UK mainly because of its widespread acceptance as a quality brand, solid foundations, great advertising reach and customer service facilities in delivery choices. The brand is still the strongest supermarket chain in the United Kingdom by sales as per studies done by Bokaie and Huddleston. This brand has become stronger as a result of TESCO’s innovative, affordable and quality products that they introduce each year along with their own unique brands to suit a variety of shoppers. It has helped them build a strong base and customer loyalty.

What do you think?
In your experience with TESCO and ALDI, which do you think is the better supermarket? Why do you think so?

Let us know in the comments below and remember to vote at the top of the page.