- Aldi will engage in price competition with other major supermarket chains in the UK.
Budget retailer Aldi is still engagement in a intense price battle in the UK against traditional outlets. As per Aldi UK, the German budget food vendor managed to record a high turnover of £17.9 billion (around €21.2 billion) in the previous year, marking a 16% boost from 2022. Even more noteworthy, pre-tax profits escalated from £152.6 million to £536.7 million.
However, Aldi's pace has noticeably diminished this year, with its market share occasionally shrinking. Market analysts attribute this to long-established British supermarkets such as Tesco, Sainsbury's, Asda, and Morrisons launching "Aldi Price Match" promotions, featuring products priced the same as Aldi's.
Aldi UK and Ireland CEO Giles Hurley indicated plans for additional price reductions paired with investments. He expressed optimism about additional price drops before Christmas, as reported by the UK media outlet PA.
Retail specialist Stephan Ruschen advises against British supermarkets posting "Aldi Price Match" tags on relevant items. "This inadvertently grants Aldi a superior position, which it does hold as the price leader, but it's unnecessary to actively endorse that," he stated.
In Germany, there aren't any such tags, but there's a comparable focus on Aldi's pricing. All retailers establish their starting prices based on Aldi and adjust them weekly to align with Aldi's prices, even for branded items like Nutella. German retail sector prefers to inform consumers about the variety of discounted goods, aiming to convey: "There's no need to pay a visit to a discount store."
The UK positions as Aldi's third most significant market globally, after Germany and the USA, according to the EHI Retail Institute. With a market share of 10%, Aldi ranks as the third-largest supermarket on the island, closely trailed by its rival Lidl, with approximately 8%.
The intense price battle in the UK retail trade between Aldi and traditional outlets has led some established supermarkets to introduce "Aldi Price Match" promotions. Despite Aldi UK's record turnover and significant profit increase last year, the retailer has noticed a decrease in pace and shrinking market share this year due to these promotions.
