Aldi Contributes Over £380 Million to Scottish Economy

Aldi Contributes Over £380 Million to Scottish Economy

A new report published by the Centre for Economics and Business Research (Cebr) highlights the significant role that Aldi plays in adding value to the Scottish economy and supporting the country’s businesses.

Date:

Fri, 08 Sep 2017

Source:

Centre for Economics and Business Research

 

The analysis shows that Aldi contributed over £380m in Gross Domestic Product (GDP) (1) to the Scottish economy in 2016, through job creation, spending with Scottish-based companies, tax contributions and capital investment. 

Aldi first opened in Scotland in 1994 and now has 75 stores across the country, with plans for this number to reach 100 stores by 2020. 

Cebr highlighted the importance of Aldi’s focus on sourcing products locally where possible, which translates into fair and consistent prices for suppliers and shoppers alike. This approach provides shoppers with unbeatable value on high quality products. Last year, more than a fifth (22%) of products sold in Aldi stores across Scotland were sourced from Scottish suppliers, with this share set to continue to grow in the future. 

Key highlights of the report include: 

  • In 2016 Aldi supported 7,800(2) direct and indirect jobs across Scotland, linked to an estimated contribution of £214 million(3) in employee compensation
  • Direct employment at Aldi grew from 242 employees in 2005 to 2,100 last year, representing growth averaging 22% annually from 2005-2016
  • For every 1 retail job at Aldi, approximately 3.78 jobs are supported throughout the Scottish economy due to the combination of direct, indirect and induced multiplier impacts
  • Working with over 80 Scottish suppliers contributed to the generation of a total of £244m in GVA contribution to GDP. £169m of this was generated through selling Scottish products throughout Aldi’s UK and Ireland stores. Aldi is committed to working where possible with local businesses, alongside driving efficiencies, which  will help further multiply the value of how much every £1 spent in Aldi delivers for the Scottish economy
  • For every £100 of GVA generated directly through Aldi’s distributive retail business, an additional £375 of GVA contribution was generated in the wider Scottish economy in 2016
  • Aldi’s activities catalysed a total tax contribution of at least £27m last year, a rise of 10% on its 2015 contribution

Matthew Barnes, CEO of Aldi UK and IRE, said: “For the first time, this report demonstrates how the positive impact of Aldi’s low priced, high quality products stretches beyond our stores. Our approach to sourcing as local as possible means that shoppers are able to enjoy the best value products, with the confidence that they’re supporting Scottish companies and jobs.”

Oliver Hogan, Director of Cebr and principal author of the report, commented: “Aldi’s GVA contribution of £100 generating an additional £375 for the wider economy is impressive, yet logical when you take time to consider the retailer’s extensive links with the wider domestic and export economy. This is driven by the efficiency and flexibility of Aldi’s business model, which will continue to meet the cost and competitive pressures of the grocery market.

“Ultimately, this will help the supermarket to sustain growth and drive prosperity for the wider economy as Aldi prioritises local sourcing for products sold in not just its Scottish stores, but also in its stores elsewhere in the UK and Ireland.”

Matthew Barnes concluded: “Our close working supplier partnerships enable us to effectively meet demand for product provenance, high quality and value, whether that’s more locally in Scotland or throughout the UK and Ireland. We’ll continue to invest in expanding across Scotland and working where possible with local businesses. This will help further multiply the value of how much every £1 spent in Aldi delivers for the Scottish economy.”

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