The chief executive of Aldi’s UK division has criticised rival supermarkets for contributing to rising food prices while committing to keeping Aldi’s prices low amid ongoing inflation pressures. Giles Hurley, speaking as Aldi reported a decline in annual profits, accused competitors of using loyalty promotions and higher prices to drive growth, a strategy he suggested lacked transparency and did not benefit consumers in the long term.

Aldi, the UK’s fourth-largest grocery chain with 1,092 stores, reported a 1 percent decrease in operating profit to £432.9 million for the last year, alongside a 3.8 percent drop in pre-tax profit to £400.5 million. The company’s turnover, however, rose 5 percent to a record £19 billion, boosted by shoppers increasingly seeking cheaper grocery options amid tight household budgets. Hurley emphasised that Aldi remains the only major retailer to have reduced the overall cost of a weekly shop compared to the previous year.

Hurley criticised the widespread use of loyalty schemes by competitors such as Sainsbury’s and Tesco, warning that these promotions often start from inflated prices and fail to offer genuine savings, thus complicating budgeting for customers. He argued that the grocery sector had become more homogenised, with rivals adopting similar tactics including expanded product ranges, frequent promotions, and loyalty programmes, which may encourage short-term purchasing but do not build lasting consumer trust or consistently offer the lowest prices.

Despite the dip in profitability, Aldi announced plans for a record £900 million investment in the UK market in 2027, which includes the opening of 40 new stores. The expansion will see 30 new outlets launched within the next ten weeks in locations such as Newport, south Wales, Dumbarton, and Willesden, northwest London. Hurley downplayed concerns regarding new land agreement rules introduced by the Competition and Markets Authority (CMA), which aim to curb the practice of large discounters blocking competitors from opening nearby stores. He did not anticipate any significant impact on Aldi’s growth plans.

Aldi also revealed a forthcoming partnership with Deliveroo to provide customers with rapid delivery options, a move that marks a shift after years of resisting home delivery. Hurley stated the collaboration would enhance convenience without adding costs to Aldi’s store model or burdening all shoppers.

Addressing potential supply challenges due to the strongest El Niño event in a generation and ongoing geopolitical tensions, Hurley acknowledged climate change and global events pose risks to the food supply chain. However, he said there were currently no systemic food shortages affecting the UK. He highlighted recent domestic droughts and international disruptions as evidence of the fragility of the food system and called for long-term national focus on food security.

Overall, Aldi’s leadership reiterated a commitment to affordability and transparency at a time when rising inflation continues to strain household budgets. The company aims to leverage competitive pricing and expanded access to maintain growth despite a challenging retail landscape.