Aldi is expected to cut more prices in the run-up to Christmas amid easing inflationary pressures, the supermarket’s boss has said. The German discounter’s UK business said it has seen negative price inflation in recent months, in a sharp reversal from soaring food and drink prices witnessed by shoppers over the past two years.
It came as the grocer reported surging sales and profits for last year and unveiled plans to spend £800 million to ramp up expansion across the UK in its largest annual investment. The retailer, which currently has more than 1,020 stores, said it still sees more opportunity to grow its customer base, amid long-term ambitions to expand to 1,500 stores.
On Monday, Giles Hurley, chief executive of Aldi UK and Ireland, pointed towards some signs of improving customer sentiment as price inflation eases. He stated, “Our price inflation has come down ahead of other supermarkets, and we are the only one where our prices are lower than a year ago.” Mr Hurley expressed optimism that customers would continue to see price reductions in stores before Christmas.
Despite noting a shift towards its premium products among shoppers, Mr Hurley reassured that the retailer is committed to supporting customers during challenging times. Aldi is set to open 23 stores by the end of the year and revitalise another 100 shops as part of the record investment plans.
The 23 new locations for stores over the next 16 weeks include Muswell Hill in London and Caterham in Surrey. The details of the investment came as Aldi reported its highest-ever annual UK and Ireland sales growth of 16% to £17.9 billion for 2023, with pre-tax profits more than tripling to £536.7 million due to cost savings across the business.
Mr Hurley highlighted the launch of hundreds of premium range products for Christmas, emphasising the company’s commitment to high-quality and affordable groceries. Aldi, Britain’s fourth-largest supermarket with over 45,000 colleagues, plans to spend £1.4 billion on expansion over two years towards achieving its goal of 1,500 stores in the UK.
As Aldi prepares for the Christmas trading period, customers can expect a wider selection of seasonal products at unbeatable prices. The supermarket chain’s dedication to offering competitive prices and a diverse product range continues to drive its growth and customer satisfaction.