(qlmbusinessnews.com Thurs, 28th Sept, 2023) London, UK —
Aldi Achieves Record UK Sales Amidst Cost of Living Crisis.
Aldi, the discount supermarket chain, has reported record-breaking sales in the UK over the past year. The surge in sales, which reached £15.5 billion in 2022, was attributed to consumers seeking affordable groceries amidst the cost of living crisis. Aldi managed to attract an additional 1 million customers to its 1,000 UK stores during this period, indicating a shift away from established supermarkets.
Profits also saw a significant increase, tripling to nearly £179 million compared to £60 million the previous year. The rise in profits follows a year of increased investment in measures related to trading during the Covid-19 pandemic.
Giles Hurley, the CEO of Aldi UK and Ireland, noted that consumers have altered their shopping habits due to rising living costs. He stated, “Although inflation is easing, households are still under real pressure from higher living costs. As a result, Britain is shopping very differently to how it did 18 months ago – fewer trips, more own label products, and switching supermarkets in search of better value.”
Aldi, traditionally seen as a “top-up” destination, has been working to expand its product range and appeal to a wider customer base. Despite selling approximately 2,000 products compared to the 40,000 found in larger supermarkets, Aldi has gained market share during the food price inflation period.
According to market share data from July, Aldi became the UK's fastest-growing grocer, holding a 10.1% share of the market, up from 9% the previous year. It surpassed Morrisons to become the UK's fourth-largest grocer.
Aldi plans to invest over £1.4 billion in the UK over the next two years, including the opening of new stores and distribution centres and improvements to existing branches. This expansion is expected to create 6,000 new jobs in addition to the 6,000 permanent roles added last year.
The company has already invested over £350 million this year to lower the prices of 650 products and intends to implement more price cuts before Christmas as food price inflation gradually subsides.
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