Aldi penned a three-fold increase in profit last year as consumers flocked to the German discounter’s stores in response to rising prices.
Sales hit a record £15.5 billion over the 12 months to December 2022, Aldi reported on Monday, helping the chain’s market share climb to 10.1% as of this month.
Operating profit soared from £60.2 million to £178.7 million as a result, prompting Aldi to lift its two-year investment in expanding its UK and Irish store estate to £1.4 billion.
“What we’re seeing is a new generation of savvy shoppers who’ve turned their back on traditional, full-price supermarkets in favour of transparent, low prices.”
“Shoppers know they’ll always get more for their money at Aldi,” UK and Irish chief executive Giles Hurley commented.
Higher costs last year have prompted a shift in customers’ attitudes toward shopping at discount store such as Aldi and Lidl for good, Aldi added in its statement.
“Increasingly price sensitive customers have been shifting towards own label products over branded more expensive alternatives,” interactive investor analyst Victoria Scholar said.
“Their increased presence in the UK has intensified supermarket price competition, keeping larger rivals like Tesco and Sainsbury’s on their toes.”
Aldi overtook Morrisons as the UK’s fourth-largest supermarket last year, with the latest Kantar data placing its combined market share with Lidl at almost 18%.