Shopping revolution boosts discounters as consumer pressure changes shopping habits
The boss of Aldi declared that the cost of living crisis has “changed the way we shop in Britain” after sales at the supermarket chain hit a record.
Giles Hurley said “a new generation of savvy shoppers” are “flocking” to Aldi and buying more own-brand products in a bid to cut their grocery bills.
The comments came as Aldi revealed revenue hit £15.5bn last year, an all-time high and up 14 per cent on the previous 12 months, while profits almost tripled to £178.7 million pounds sterling.
Aldi’s share of the UK grocery market has grown to more than 10%
Having overtaken Morrisons to become the country’s fourth biggest supermarket, Aldi now wants to open 500 more stores in the UK in the coming years to take the total to 1,500.
The German-owned chain also announced plans to spend £1.4bn over the next two years on opening new sites, renovating existing ones and expanding its distribution network.
Hurley said: “Although inflation is declining, households are still under real pressure due to the rising cost of living.
‘As a result, Britain is shopping very differently to how it did 18 months ago: less travelling, more own-brand products and switching supermarkets in search of better prices.
‘What we are seeing is a new generation of savvy shoppers who have turned their backs on traditional full-price supermarkets in favor of low, transparent prices, which is what we are known for.
“Customers are flocking to us.” Aldi attracted an extra 1 million customers last year and has made price cuts of £350 million on 650 products this year, and promised more for Christmas.
However, both Aldi and Lidl lost ground over the summer as larger rivals including Tesco and Sainsbury’s announced a wave of price cuts to attract shoppers. Both Tesco and Sainsbury’s promise to “match Aldi’s price”. Britain’s biggest supermarkets are locked in a major price war as they try to win over shoppers worried about their bills.
‘[Consumer confidence] “It moves pretty fast,” Hurley said.
‘There have recently been reports that consumer confidence is improving, clearly that is positive and we welcome it.
“Customers are still under unprecedented pressure due to the cost of living crisis.”
It has been a year since Aldi overtook Morrisons to become Britain’s fourth largest supermarket. Aldi held 10.1 per cent of the market in the three months to September 3, according to the latest industry data from research firm Kantar.
Hurley said Aldi’s expansion program is unrivaled in the sector as it seeks to gain a larger share of the market.
The scheme will create 6,000 new jobs this year, after an additional 6,000 permanent jobs were created last year. It employs more than 40,000 people.
However, Hurley urged planning authorities to “speed up the process” and said there was a “much faster” turnaround in stores before Covid.
Hurley said: “We have to understand that during the pandemic, many businesses and the
Governments were challenged by the circumstances they faced. Now that we are out of that period, we would appreciate returning to the pre-pandemic process and speed.”
Neil Shah, director of investor relations firm Edison Group, said: ‘Aldi’s record profits are largely due to its entrenchment in UK household supermarkets, where two-thirds now shop at the German grocery giant. discount supermarkets.
‘Aldi, overtaking Morrisons, is now the UK’s fourth largest supermarket and, along with Lidl, is experiencing rapid growth, disrupting shopping habits and consolidating its position in the market by attracting value-seeking consumers.
“This strengthened market posture underlines Aldi’s commitment to offering cost-effective, value-based alternatives, attracting almost a million new customers in a year.”