Aldi Boss Criticizes Rivals' 'Phoney' Loyalty Deals, Supports Government Crackdown

Aldi's UK boss, Giles Hurley, has publicly supported a government initiative to curb misleading supermarket pricing, while also taking aim at rival loyalty schemes.

Hurley backed Prime Minister Andy Burnham's plan to crack down on "invented reductions" and "fake prices," stressing the need for "rigorous and targeted" enforcement. He argued that supermarkets should prioritize making prices affordable for all shoppers, stating that retailers "start low, stay competitive and make the price available to everyone."

Aldi, the UK's fourth-largest supermarket, is among the few major grocers that do not offer a loyalty program. Hurley criticized schemes that require customers to download an app, suggesting that consumers should not be forced to pay more simply because they lack a smartphone or choose not to share their personal data.

"A discount can be genuine, yet the final price can still be expensive. A loyalty badge is not proof that shoppers are getting the best value," Hurley stated, citing data that showed a basket of household staples was significantly cheaper at Aldi compared to Tesco and Sainsbury's, even after loyalty discounts were applied at the latter two.

He questioned whether customers truly receive the lowest price after all cards and promotions are accounted for. The Aldi boss also raised concerns about supermarkets potentially using loyalty apps to gather customer data and suggested some retailers may inflate standard prices only to reduce them via loyalty offers, effectively returning them to market rates.

While acknowledging a Competition and Markets Authority finding that 92 percent of loyalty-priced products offered a genuine reduction compared to their usual price, Hurley described this as "only part of the story." He argued that such comparisons should not be solely against a supermarket's own previous prices but against prices more broadly.

This critique is part of an ongoing competition between German discounters like Aldi and Lidl and their established British rivals. Aldi and Lidl have been rapidly expanding by attracting cost-conscious consumers. However, their growth could be impacted by a potential ban on supermarkets acquiring land to block rivals from opening nearby, a loophole that has facilitated their market share gains.