Aldi has pledged to prioritise lower prices over short-term profits as the ongoing cost-of-living crisis worsens for many UK households.
This comes as the discount grocer reported an 86.5% drop in profits to £35.7 million last year, which it attributes to investment in prices, people and pandemic-related expenses.
Aldi UK also attracted 1.5 million extra customers to its stores over the past 12 weeks as shoppers switched from traditional full price supermarkets to the discount grocer.
Customer numbers rose to 65%, with market share also surging to 9.3%, the highest at any point during its 32-year history, as shoppers made the switch to Aldi. As a result, the discounter was named the UK’s fourth biggest grocer, taking the title from Morrisons.
Existing customers were consolidating their grocery spend and using Aldi as their first and only supermarket choice.
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The company added that sales of its Specially Selected range had increased 29% in the last 12 weeks as customers switched from premium supermarkets to more affordable food.
According to Aldi UK and Ireland CEO Giles Hurley preserving Aldi’s price discount and rewarding its people “will always be more important to us than short-term profit.”
Aldi added that its buying teams were working tirelessly to counter the impact of inflation and maintain its discount against traditional full price supermarkets.
“The cost-of-living crisis is worsening, and it’s being felt by millions of households across the UK,” Aldi UK and Ireland CEO, Giles Hurley said.
“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 discount to the traditional full price supermarkets and keep grocery prices as low as possible for the millions of customers that shop with us.”
The company also confirmed that it will open 16 new stores over the next 12 weeks as part of its ongoing £1.3 billion expansion plan.
