According to Aldi’s CEO, consumers have “turned their backs on traditional full-price supermarkets” in favor of low prices.
Aldi has reported record sales, attributing the increase to rising living costs.
In the year ending in December 2022, annual sales surpassed £15.5 billion, an increase of nearly £2 billion from the previous year and a record in its 33-year history in the UK.
According to the company, the cost of living crisis has altered the manner in which Britons purchase groceries, boosting its profit and market share.
Just over a year ago, the German discount retailer surpassed Morrisons to become the fourth-largest supermarket in the United Kingdom.
Since then, Aldi has attracted an additional million customers, according to data from Kantar, which monitors supermarket sales and bills.
Aldi stated that purchasing habits have changed as a result of the inflation rate of 6.7% in the 12 months leading 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.
In 2022, Aldi’s operating profit increased to £178.7m, up from £60.2m in 2021, despite significant expenditures on COVID-19 measures in 2021.
Mr. Hurley stated, “We are observing a new generation of savvy consumers who have abandoned traditional, full-price supermarkets in favor of transparent, low-priced alternatives.”
Kantar data also indicates that Aldi’s sales have increased 17% over the past year, the highest growth of any supermarket.
Aldi stated that it had invested over £350 million to reduce the price of 650 items, and this month it reduced the price of 55 fruits and vegetables.
The supermarket maintains more than 1,000 stores in the United Kingdom and announced earlier this month that it would open 500 more stores in the United Kingdom. Approximately 6,000 employees will be hired as part of expansion plans.
