Aldi is no longer a second store for households, says boss

Aldi chief Giles Hurley said shoppers were abandoning traditional supermarkets in search of lower prices. Photo: Andrew Fox

Aldi is no longer the 'second store for households', Aldi's UK boss has said, as he hailed the discount retailer's record £2 billion in sales growth last year.

Giles Hurley, chief executive of Aldi UK and Ireland, said the retailer was luring shoppers from all major supermarkets, including German rival Lidl.

He said shoppers were «treating Aldi as their first stop store» rather than visiting it to buy certain goods.

He said: “What often happens with new customers is that they try certain products, and once they are satisfied, their basket will increase over time.”

>However, he said there had been recent changes in customer habits that had led to Aldi adding nearly one million new customers in the past year.

Aldi's latest sales figures show UK revenue jumping to B last year it was £15.5 billion, up from £13.6 billion in 2022, and operating profit almost tripled to £179 million, up from £60 million.

This is despite increased investment from Aldi, which has said it wants to pump up sterling. $1.4 billion to the UK over the next two years. The company has invested £1.3 billion since the end of 2021.

The retailer is now the fourth largest grocer in the UK, having overtaken Morrisons in the rankings last summer.

Takeover of a German supermarket in 1907

Sales growth is now around 17%, compared with around 9% at Sainsbury's and Tesco, according to the latest Kantar data.

Mr Hurley said this was because customers started coming to us. away from traditional supermarkets to ensure lower prices.

He suggested that recent price cuts at rival supermarkets were an attempt to create a more favorable atmosphere during the cost of living crisis.

However, he said Aldi remained the cheapest retailer, according to Which?.

Mr Hurley added: “Although inflation is falling, households are still under real pressure from the higher cost of living.”

Competitors point to Aldi's new store openings as the reason for its tremendous growth. sales growth: the number of discount stores across the UK has increased from 775 in October 2018 to 1,000 today.

It recently announced plans to open a further 500 stores in the UK, more than Sainsbury's. 39;s.

Mr Hurley said Aldi was keen for planning authorities to speed up the process so they could open sites faster.

He said: “Obviously there is the issue of identifying a site, acquiring it, going through the planning process and building it. The whole process is probably slower than ever.”

Rival supermarkets have been accused of preventing stores from opening due to opposition to planning applications.

Mr Hurley told the Telegraph earlier this year that this could mean a delay to Aldi's target of opening 1,200 stores by 2025.

Mr Hurley said on Monday that «there are a lot of things outside the network». our control when it comes to the acquisition of properties and the planning process,” meaning it was difficult to say whether it would reach 1,200 stores over the next two years.

At the same time, the discounter has suffered from a surge in thefts at UK retailers.

Aldi is testing body cameras for staff in a number of stores and will soon decide whether to roll them out more widely once the trial is complete.