Aldi's UK chief executive has criticised competing supermarket chains for what he characterises as misleading loyalty discount practices, claiming some retailers artificially inflate starting prices before applying reductions that fail to deliver genuine savings to shoppers.
Giles Hurley stated that promotional discounts can be valuable "when they're real and when they show realistic reductions", but condemned what he described as artificially steep markdowns designed to deceive customers. He argued that schemes beginning with "unrealistically high prices" that then fall to uncompetitive levels represent loyalty programmes that lack transparency and undermine shoppers' ability to budget effectively.
Aldi remains the sole major supermarket operator in Britain without a loyalty card scheme, despite such programmes attracting millions of regular users across the sector. The company reported a 5% sales increase to £19 billion for 2025 compared with 2024, though operating profits declined slightly during the same period—a drop the retailer attributed to elevated staff wages, infrastructure investments, and price reductions.
What does the competition watchdog say?
The UK's official competition authority examined supermarket loyalty pricing in 2024 and reached different conclusions from Hurley's position. According to the Competition and Markets Authority's final report published on 27 November 2024, there was minimal evidence that supermarkets were inflating standard prices to enhance the appearance of loyalty offers, and that members of loyalty schemes "almost always make a genuine saving". The watchdog's analysis covered approximately 50,000 loyalty-priced products and determined that shoppers could save between 17% and 25% on average when purchasing loyalty-priced items at the supermarkets examined.
The CMA's investigation, which launched in January 2024 following concerns about how grocery loyalty pricing affected consumers, specifically reviewed schemes operated by Tesco, Sainsbury's, Waitrose, Co-op and Morrisons. Notably, Aldi and Lidl were excluded from the analysis because neither operates online shopping and neither stocks a sufficiently broad range of branded products to enable direct price comparisons with competitors.
What do retail analysts say about Aldi's position?
Ged Futter, a former Asda buyer and retail consultant, characterised Hurley's remarks as a deflection from underlying competitive pressures facing the discount retailer. Futter argued that Aldi's rapid expansion, which continued until approximately two years ago, has since slowed relative to the broader supermarket sector. He noted that "the price gap isn't as clear as it once was", suggesting Aldi's traditional cost advantage has narrowed as competitors have adjusted their own pricing strategies.
How is Aldi performing financially?
Despite the slight decline in operating profits, Hurley emphasised that Aldi continues to attract new customers in a highly competitive market. He highlighted a distinctive claim:
We are the only retailer where the price of your weekly shop is actually cheaper this summer than last summer.
The company has committed £340 million this year to price reductions and announced plans to open 40 new stores during the coming year as part of a £900 million investment programme. Aldi also confirmed it would expand long-term supply agreements with British producers, reflecting a strategic focus on domestic sourcing.
What is Aldi's broader strategy?
Hurley emphasised the company's commitment to "everyday low prices, not short-lived offers that disappear the following week". He stated that
Promotions can supplement every day low prices when they're meaningful, when they're real and when they show realistic reductions.
Beyond pricing, Hurley raised concerns about food supply chain vulnerabilities exposed by recent droughts and global disruptions. He contended that strengthening domestic food production should become a national strategic priority, arguing this would reduce Britain's susceptibility to external shocks that drive up consumer food costs.
What are Aldi's future investment plans?
Looking ahead, Aldi has signalled substantial expansion commitments. According to a report published on 28 September 2026, Aldi is planning to invest US$1.2 billion in Britain during 2027, underscoring the company's long-term confidence in the UK market despite current competitive headwinds.
Key Facts
- Aldi reported a 5% sales increase to £19 billion for 2025, though operating profits declined due to higher staff wages and infrastructure investments
- The Competition and Markets Authority found shoppers save 17–25% on average through loyalty schemes, contradicting claims that such programmes are deceptive
- Aldi remains the only major UK supermarket without a loyalty card scheme, distinguishing its business model from competitors
- The company has committed £340 million to price cuts this year and plans to open 40 new stores with a £900 million investment programme
- Aldi plans to invest US$1.2 billion in Britain during 2027 as part of its expansion strategy
