HUNGARY: Aldi to grow store chain | Progresiv

The grocery chain Aldi plans to build 50 or 60 new stores and a logistics base in Hungary provided there are no government measures impeding it, the managing director of Aldi Magyarország Élelmiszer Bt. told weekly Figyelő in a recent interview.

Companies like ours have an unquestionable impact on the Hungarian economy. It is important for us to be able to operate in a predictable and foreseeable environment, thus creating security not only for the capital invested but also for the jobs we created, said Tibor Székács. The CEO of Aldi Hungary added that “if possible, Aldi is ready to set up a new logistics centre and open 50-60 new Greenfield stores, which would be an investment of 50-60 billion foritns (163 – 195,5 million euros) and would create several hundreds of new jobs.

This raises the most important question of the last few months, namely whether Aldi would be able to recruit enough people for its new stores on a market that is struggling with a serious labour shortage. Székács was upbeat in this regard: 

We are in a fortunate position of Aldi not having a shortage of labour. We try to make sure employee succession is uninterrupted. We launched our apprenticeship training programme in a dual system last year, and there are already 68 students enrolled in the "Aldi School".

Székács also noted that the market is being reshaped: Discount retail chains in Hungary are getting close to having a 18-19% combined market share, and they will hopefully exceed 20%. But there is still potential in this area since Hofer alone has such a market share in Austria.

Rising wages in Hungary could also assist the discount chains, whose stated intention is to secure for themselves the biggest share possible of the increased purchasing power. Consequently, Székács does not find it impossible that “Discount chains will carve out 24-25% of the market, surpassing hypermarkets in Hungary”. (www.portfolio.hu)