Aldi CEO warns of uncertainty due to late November Budget
The chief executive of Aldi UK & Ireland has warned that the upcoming Autumn Budget may affect consumer spending towards the festive season.
The uncertainty and inflation are set to deter customers, the Aldi boss cautioned, according to a report by the Guardian.
Giles Hurley, CEO of Aldi UK & Ireland, told the publication: “There is no doubt the budget does create a bit of uncertainty.”
“If you ask customers across the length and breadth of the country, they would say that inflationary pressures are persistent. Inflationary challenges are just tremendously challenging.
“[For consumers, grocery inflation] comes on top of bills elsewhere going up. Household groceries have become a bigger proportion of household income, without question.”
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Aldi recently posted solid full-year results in the year leading up to December 2024, reporting a sales increase and a slight profit dip year-over-year.
Hurley’s warning comes after the British Independent Retailers Association (BIRA) warned that the push back in the Autumn Budget will damage consumer confidence.
“The government needs to consider very carefully any measures that might inadvertently add to operating costs, as there is a risk they could find their way into the food sector,” he said.
Supermarkets have been warning of the impact of higher National Insurance fees as well as business rates, which may lead to store closures, increased inflation and a slowdown in hiring.
3 Comments. Leave new
Giles Hurley is his normal calm self and understates the checkout price effect that the recent direct and indirect (stealth) taxes are having on everyday shopping.
UK supermarkets are already very tightly run and there is little room for more economies.
Prices will rise if retailers face more taxes than ever.
The government’s tax and spend policies to appease their union paymasters is having a huge negative impact on SMEs suppliers to the supermarkets. They struggle to maintain shelf presence under massive pressure of rising operating costs and more demands for gross margin from their clients. A slowdown is already underway and supermarkets can not push all issues on the supply base, they need to be honesr brokers.
The government’s tax and spend policies to appease their union paymasters are having a huge negative impact on SMEs suppliers to the supermarkets. SmE’s struggle to maintain shelf presence under massive pressure of rising operational costs and more demands for gross margin from their clients. A slowdown is already underway and supermarkets can not push all issues onto the supply base, they need to be honesr brokers.