Why the big supermarkets have good reason to fear Aldi

As the discounter announces plans to open a new store a week, James Moore says the ‘big four’ should be worried

Eating up Britain? Aldi’s expansion shows no signs of slowing (iStock)

Supermarkets’ low, low prices were a lot higher than they should have been before Aldi and Lidl got serious.

Operating margins of 5 per cent or more weren’t uncommon despite grocers’ claims of engaging in cut-throat competition for the shopper’s pound. They’ve come down a lot.

The sector’s big dog, Tesco, is making just above 3 per cent. How will it and the other members of the “big four” (Sainsbury’s, Asda, Morrisons) handle a fresh onslaught from the discounters? We’re about to find out.