Aldi pledges to 'double down' on low prices as profits fall

Aldi revealed that pre-tax profits slipped 86.5% to £35.7m  in 2021, partly as a result of investment in prices as the cost of living crisis hit shoppers’ budgets.  Sales inched up 0.9% to £13.65bn over the year. 

Aldi UK and Ireland chief executive Giles Hurley said price investment, higher staff pay and pandemic costs had all affected profitability.

Aldi also reported that customer numbers and market share were soaring “as cost-conscious shoppers switch from traditional, full price supermarkets”. Over the last 12 weeks it has drawn 1.5 million more customers to its stores and achieved a record market share of 9.3% – Aldi has just knocked Morrisons out of the big four grocery ranking.

The retailer said its buyers are “working tirelessly to counter the impact of inflation and maintain its discount against traditional full price supermarkets”. Aldi, which has 970 stores in the UK and Ireland, intends to open another 16 before the end of the year. 

Hurley said: “The cost-of-living crisis is worsening, and it’s being felt by millions of households across the UK. It’s in times like these when our customers rely on us the most, which is why we’re focusing on continuing to deliver our longstanding price promise by offering the lowest possible prices in Britain, every single day.

“Independent research shows our discount is as compelling as ever and that’s why more and more people are switching to Aldi. We will do whatever it takes to maintain our discounts to the traditional full-price supermarkets and keep grocery prices as low as possible for the millions of customers that shop with us.

“Preserving our price discount and rewarding our people will always be more important to us than short-term profit. Being privately owned means we can keep our promises even when times are tough.”

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