Aldi sees record sales amid cost of living crisis

Aldi has reported record sales and the company says concerns about the cost of living had driven up customer numbers.

Annual sales topped DKK 15.5 billion. pounds in the year to December 2022, almost an increase of 2 billion. pound from a year earlier and a record in its 33-year history in the UK.

The company said cost of living crisis had changed the way Britons shop for groceries, benefiting their profits and market share.

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

An extra million customers have been attracted 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 of 6.7% in the 12 months to August.

Giles Hurley, managing director of Aldi UK and Ireland, said: “The UK is shopping very differently to 18 months ago – less travel, more own brand products and switching supermarkets in search of better value.”

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

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

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

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‘Optimistic that customers will continue to see price reductions’

Aldi said it had invested more than £350m to bring down the price of 650 items and this month it cut the prices of 55 fruit and vegetables.

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

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