For ten months of the year, Aldi had a winning formula. As Britain's fasted growing grocer it was famous for low prices on a curated range of everyday items, a strategy that delivered ever-growing numbers of loyal customers and market-leading average basket sizes.1 Yet, at Christmas, the most crucial trading time for grocers, everything changed: Aldi's greatest strength became its biggest weakness.
- Aldi's most loyal customers sought inspiration and specialness elsewhere, and traded-out!2
- Consequently, Aldi was missing out on their loyal customers' biggest and most profitable shop of the year.3
Aldi's primary Christmas objective was to reduce this trade-out so, from a research perspective, the priorities were clear: Aldi needed to understand why this behaviour was happening and what could be done to reduce its recurrence.