Canny consumers bag big savings with own labels; ShopTalk.

Byline: Ruki Sayid

HIGH STREET BUYER'S GUIDE

ALDI'S first foray into the UK market was an experiment to see if Brits would take to shopping without big brands, flashy deals or free carrier bags.

Now, 19 years later, the German discounter boasts 460 stores nationwide with a new one being built every week as part of a massive pounds 1.5billion expansion scheme - even though its sales growth has dipped below 20% as customers cut back on non-food purchases in the credit crunch.

We've taken the no-frills shopping trips to Aldi, and its competitors Netto and Lidl, to heart. And it has given the big four - Tesco, Asda, Sainsbury's and Morrisons - food for thought. Before the

German invasion, own-brand labels were not well regarded.

But the success of the chain - and the sales leap of Sainsbury's Basics budget label, which has seen demand go up by 60% - reveals a new, savvy consumer.

"Every shopper wants good-quality food at an affordable price and that's what we give them," says Paul Foley, managing director of Aldi UK.

The store doesn't go in for promotions, buy-one-get-onefree deals or loyalty cards.

Instead Paul says the chain offers "competitive prices that knock pounds 25 from a pounds 100 family shop". How is it done?

By providing a what-yousee-is-what-you-get range.

Aldi offers a selection of just 1,000 products, compared with about 30,000 in any of the major chains - the maximum choice you will have for any item at Aldi is three rather than a whole aisle-full.

"We're like the Simon Cowell of the food world - we select the best. The one we think has the X Factor," Paul says. "We choose the best quality, smartest packaging and sell it at the most competitive price under our own-brand name.

"You only see one tomato ketchup in Aldi - not 20 different types, in varying sizes, in plastic, glass and upside-down bottles." Though there is one exception... "Tea is the one area where customers also like a brand. But our own brew is more than a match for PG," Paul says.

ESSENTIALS While the credit crunch has led to more people shopping for essential items at the stores, Aldi's fortunes started to soar four years earlier when its own-brand products, such as its pizza and face cream, started to win praise from critics.

Now Aldi attracts shoppers from all backgrounds.

Paul says: "At first, people just had a look or topped up their shopping. But growth has been electric since 2006 and now they do whole shops here.

"It's taken time to change people's perceptions and convince them affordability doesn't compromise quality." The Aldi onslaught has also led to constant price wars among the big four.

Tesco has launched its own discount brand range to stop shoppers deserting and Sainsbury's is rapidly expanding its Basics range.

But Paul says he doesn't fear the competition.

"We don't worry about them - we let them worry about us."

THE new gimmick- packed handheld Nintendo includes a special effects camera, plays music, allows owners to record and distort and is thinner than the old DS Lite. It has a bigger screen and plays most DS games. It comes in black or white and costs from pounds 146.80.

Out on Friday.

: WHAT'S NEW

BLONDES have more fun and really look after their hair - sales of products just for them have shot up by a third. C4 hair guru Andrew Barton, who does the pounds 3 Shiny Happy range at Asda, says: "Many clients feel more confident and youthful when they go blonde." GOING FAST

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JUICE RIGHT: Paul Foley with Ruki