Aldi’s CEO Blames Planning Delays for Stunted Job Growth and Store Openings
The chief executive of Aldi GB has expressed frustration with the sluggish planning system in the UK, stating that the intricate procedures and what he calls “unfounded” objections from competing supermarkets are hindering the opening of new stores and the creation of jobs.
Giles Hurley, who leads the UK division of the German discount retailer, pointed out that a previously simple 12-week planning process has now devolved into a lengthy two-to-three-year challenge, impeding Aldi’s growth plans in the UK.
“The planning process takes longer than we would prefer,” Hurley remarked. “There are several obstacles preventing us from operating at our desired speed. It has become increasingly complicated and convoluted.”
These remarks echo concerns voiced by Lord Wolfson of Aspley Guise, CEO of Next, who recently advocated for a significant revision of the UK planning framework, cautioning that excessive red tape is detrimental to both industry and society.
Aldi, which currently operates over 1,000 stores in the UK, plans to open 40 additional locations this year, backed by a £1.3 billion investment initiative. Hurley highlighted that while the business’s ambitions are “virtually limitless,” the ability to open new stores is increasingly hampered by the inefficiencies present in the UK planning system.
“It’s evident that there are advantages to attracting investment into the country, as well as for consumers in terms of increased choices and better value,” he added. “We strive to collaborate with the government whenever possible to enhance the efficiency of the system.”
Hurley, 49, noted that progress is frequently stalled due to objections lodged by established supermarket competitors like Tesco and Sainsbury’s, who often voice concerns regarding the potential effects of new Aldi locations on local shopping centers and planning regulations.
“It is well-known that our competitors do challenge our planning applications,” Hurley explained. “Often, these objections are based on matters we find somewhat unfounded. While they delay us, they do not stop us; however, these frustrating delays impact our investments and job creation efforts.”
Supermarket chains are permitted to contest planning applications through the established consultation process, with objections generally citing issues like traffic concerns, environmental effects, or market saturation. Aldi, however, contends that many of these concerns are overstated or strategically motivated to hinder the progress of newer, lower-cost competitors.
Recently, it was reported that the families behind Aldi Sued and Aldi Nord have engaged in discussions regarding a potential merger aimed at forming a joint holding company, with plans to split shares equally between the family trusts, according to Bloomberg. The division of the Aldi discount chain in the 1960s into Aldi Sued and Aldi Nord resulted from a disagreement between co-founders Karl and Theo Albrecht over the sale of cigarettes.
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