Aldi pledges ‘record’ investment to cut prices as sales soar
The retailer made £100m of price cuts on more than 300 products over the past three months, as it preps an £800m nationwide expansion.
Aldi has pledged “record” investment aimed at cutting prices, as the supermarket prepares to spend £800m accelerating its expansion nationwide.
The retailer made £100m of price cuts on more than 300 products over the past three months, including on items like chicken breasts and potatoes. According to Kantar data published in June, Aldi remains the fourth largest retailer by consumer spend, with market share of 10%.
“For every £1 of profit generated last year, we’re investing £2 this year – opening more stores and building the supply infrastructure to bring high-quality, affordable groceries to millions more families the length and breadth of Britain,” says Aldi UK and Ireland CEO, Giles Hurley.
“We’re also investing at record levels to cut prices, reward our amazing colleagues and support more causes in our local communities. All while creating thousands more jobs and even more opportunities for our growing base of British suppliers and farmers.”
The retailer will open 23 new stores over the next 16 weeks as part of a £1.4bn two-year plan seeing Aldi scale to 1,500 stores across the UK. A further 100 existing stores will be refurbished this year, alongside an update to the supermarket’s technology infrastructure to support growth.
Aldi posted record sales for the 12 months ending December 2023, up 16% from to £17.9bn, with pre-tax profit rising to £536.7m from £152.6m in 2022. The retailer notched up an operating profit of £552.9m, up from £178.7m in 2022.
As part of its planned expansion, Aldi is preparing to sign more long-term supply partnerships, following a £750m deal with fruit farm AC Goatham & Son, which includes the first ever ‘Aldi Orchard’ in Gravesend, Kent.
The investment announcement comes after the company appeared to mock competitors attempting to price match its products in an advert released in May. Speaking at the time, Aldi UK marketing director Jemma Townsend noted “increased attempts” from rival supermarkets trying to match Aldi prices.
“Competitors promoting a small number of items will never give customers the full benefits of an Aldi priced shop,” she added.
The retailer previously pledged to cut prices in April, stating it had already invested around £125m in 2024 leading to lower prices on around 500 products – equivalent to a quarter of its entire range and a third of its fresh fruit and vegetable offer. Speaking in April, the discounter committed to invest more than the £380m pumped into price reductions in 2023.
