Business

Aldi sees record sales during cost of living crisis

Aldi has reported record sales, with the company saying cost of living concerns had driven up shopper numbers.

Annual sales topped £15.5bn in the year to December 2022, nearly a £2bn increase from a year earlier and a record in its 33-year history in the UK.

The company said the cost of living crisis had changed the way Britons buy groceries, benefitting its profit and market share.

Just over a year ago, the German discount retailer became the fourth largest UK supermarket, overtaking Morrisons.

An extra million customers have been attracted to Aldi since then, according to data from Kantar, which tracks supermarket sales and bills.

Aldi said shopping habits have changed amid grocery price rises, with inflation at 6.7% in the 12 months up to August.

Giles Hurley, chief executive for Aldi UK and Ireland, said: “Britain is shopping very differently to how it did 18 months ago – fewer trips, more own label products, and switching supermarkets in search of better value.”

Aldi’s operating profit nearly tripled in 2022 to £178.7m, up from £60.2m in 2021, though the increase was due to significant spending on COVID-19 measures in 2021.

Mr Hurley said: “What we’re seeing is a new generation of savvy shoppers who’ve turned their back on traditional, full-price supermarkets in favour of transparent, low prices.”

Aldi’s sales have grown 17% in the past year, Kantar figures show, the fastest of any supermarket.

Read more:
Spending calculator: See which prices have gone up or down
Branded staple foods costing up to 910% more than budget counterparts

Please use Chrome browser for a more accessible video player

‘Optimistic that customers will continue to see price reductions’

Aldi said it had invested more than £350m to bring down the cost of 650 items, and this month it lowered prices on 55 fruits and vegetables.

The supermarket operates more than 1,000 UK stores and earlier this month said it planned to open 500 more stores across the UK. Roughly 6,000 staff are to be recruited as part of expansion plans.

Articles You May Like

Polio virus found in Gaza sewage is ‘new health disaster’
He’s a secret weapon for Stormzy, Adele and Dave – now star producer Fraser T Smith is stepping out of the shadows
British men missing in Sweden feared to be victims of double murder
Ryanair warns shareholders of weaker summer fares as profits slip
Supermodel Bella Hadid’s Adidas campaign pulled after being called ‘sick’