As executives maintain their commitment to prioritizing lower pricing in the face of a “worsening” cost-of-living issue for millions of families, Aldi has won 1.5 million more consumers.
Following the firm’s observation of growing expenses and investment in pricing, the grocery chain’s profits last year dramatically declined.
Pre-tax earnings for the German discounter’s UK division fell by 86.5% to £35.7 million in 2021 compared to 2020.
But the business has attracted 1.5 million more customers compared to last year because the managers have vowed to keep prioritizing reduced costs for its customers above short-term earnings.
Giles Hurley, chief executive of Aldi UK and Ireland, stated, “Preserving our price discount and appreciating our workers will always be more essential to us than short-term profit.”
“Being privately held ensures we can uphold our commitments even in difficult times.”
To help its customers cope with rising electricity and gasoline expenses, the store has pledged to offer the “lowest food pricing in the UK.”
As consumers attempted to reduce their food costs over the last year, Aldi’s client base has continued to rise.
As a consequence, according to specialists at Kantar, Aldi surpassed Morrisons earlier this month to take over as the fourth-largest supermarket in the UK.
Sales at the store increased 18.7% over the previous year’s comparable 12-week period, ending on September 4.
According to the company, 1.5 million more consumers have joined since last year as a result of individuals looking for its cheap offer.
According to Mr. Hurley, the cost-of-living situation is becoming worse and is affecting millions of families in the UK.
“Our consumers depend on us most at times like these, so we’re concentrating on keeping up with our long-standing pricing guarantee by providing the lowest prices in Britain, every single day.”
Additionally, Aldi said that as part of its continuing £1.3 billion growth strategy, 16 additional shops would be opening within the next 12 weeks.
Due to households needing to utilize their savings to pay for rising energy costs and the weekly grocery purchase, research has shown that family savings have more than halved since the beginning of the year.
According to statistics from the accounting company KMPG, the typical UK family has seen a hike in costs for food, electricity, and mortgage repayments of £145.50 so far this year.
Families now have to spend over £1,800 more each year to pay their expenses, raising the prospect of more price increases.
According to a poll, expenditures have increased by £194.40 a month for those between the ages of 35 and 44 since January, more than for any other age group.
Additionally, according to The Times, individuals who had funds as of 2022 only had 43% remaining.
About a third of the 3,000 customers surveyed stated they were forced to spend their savings merely to cover necessities. Another 10% said they are spending all of their money just to get by.