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Aldi criticizes loyalty pricing

In the UK, Aldi has argued that some loyalty discounts offered by rival supermarket chains give consumers the impression of a bigger benefit than they actually receive. Aldi UK chief executive Giles Hurley said starting prices are in some cases set at unrealistic levels before being marked down, while the company announced that 2025 sales rose 5% to £19 billion.

Aldi stands out among the major supermarket chains in the United Kingdom as the only one that does not run a loyalty program. Hurley said the company focuses on everyday low prices rather than short-term promotions, adding that competition across the sector remains intense.

Official review and market debate tell different stories

The UK competition authority reviewed supermarket loyalty pricing in 2024 and concluded that shoppers in most cases did make real savings through these offers. That assessment presents a different picture from the market than Aldi management’s latest criticism and the findings of official oversight.

Former Asda buyer and retail consultant Ged Futter said Hurley’s comments reflected the pressure Aldi is facing in the UK market. According to Futter, the company’s growth over the past two years has lagged behind its main rivals, and the price gap has become less pronounced than in the past.

Sales rose, but margins came under cost pressure

Aldi said operating profit fell slightly over the same period. The company said higher staff pay, infrastructure spending and price investments contributed to the pressure, and that it spent £340 million this year to bring prices down.

New store and supply plans

The German-owned chain plans to open 40 new stores next year. The move was announced as part of a £900 million investment programme.

  • The company will expand long-term agreements with British suppliers.
  • According to the company, drought and global developments have made vulnerabilities in the food supply chain more visible.

Hurley argued that increasing domestic production is strategically important if the country is to become more resilient to external shocks that can push up food prices.

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