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Business

Aldi’s financial woes in Denmark continue

admin
May 19th, 2014


This article is more than 10 years old.

German supermarket chain expects better financial result in 2014

Aldi was last year unable to turn around its financial woes in Denmark, posting a record 228 million kroner loss for 2013.

Aldi's turnover in Denmark fell from 3.6 to 3.4 billion kroner last year, which means the German supermarket giant has lost 400 million kroner in the Danish market over the past four years.

“There has been a slight decline in turnover, which is primarily connected to the closures of older shops,” Aldi explained in its press release. “The result was expected and is due to rising costs and large investments.”

READ MORE: Overseas buyers scooping up Danish companies in record numbers

A better 2014
The larger investments included 111 million kroner spent on renovations that Aldi earmarked for the modernisation of its remaining shops in Denmark.

Aldi was among the first supermarkets to promote a discount concept in Denmark, but has been overtaken by other discount competitors in recent years, which in turn has led to the modernisation efforts.

Hans Erik Hansen, the head of Aldi in Denmark, said that he expected a better financial result for the supermarket in 2014.

Fakta was another supermarket to suffer in 2013, while Rema 1000 and Netto enjoyed marked progress.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”