Aldi CEO Accuses Rivals of 'Duping' Customers with Loyalty Schemes

Aldi's chief executive has accused rival supermarkets of "duping" shoppers with loyalty discounts that "start with unrealistically high prices." The German-owned discounter, which is the only major UK supermarket without a loyalty scheme, contends that such promotions create an unfair impression of savings.

Giles Hurley, Aldi UK boss, stated that loyalty cards are unhelpful for customer budgeting and advocated for "realistic reductions" instead. He questioned the perceived value of loyalty schemes, suggesting that promotions can be misleading when they begin with inflated prices. "However, when promotions start with unrealistically high prices and come down to prices which aren't that competitive and dupe customers, we would view that as loyalty that isn't supportive, that isn't transparent and doesn't help customers plan and budget," Hurley said.

Retail consultant Ged Futter, however, suggested Hurley's comments were a distraction from Aldi's current market pressures. Futter noted that while Aldi experienced rapid growth previously, its expansion has recently lagged behind major supermarket chains.

Aldi, Britain's fourth-largest grocery chain with a 10.6% market share, is aiming to increase its presence. Despite this ambition, data from Worldpanel by Numerator indicates a recent slowdown in Aldi's sales growth, with a 0.7% increase in the 12 weeks leading up to September 6.

Hurley's remarks come as Aldi plans to invest nearly £1 billion in new stores and warehouse network expansion for the upcoming year. The company reported a 1% dip in operating profits to £432.9 million for 2025, compared to £435.5 million the previous year. This decline was attributed to investments in pricing and increased wage costs, which offset a 5% rise in sales. Pre-tax profits fell by 3.8% to £400.5 million, though turnover reached a record £19 billion.

Addressing the cost of food, Hurley emphasized its significance for households and highlighted the fragility of the food system due to factors like drought and global events, calling for food security to be a national priority. While acknowledging unprecedented conditions over the summer, he stated that systemic food shortages were not apparent. He also noted the difficulty in predicting food inflation but affirmed Aldi's commitment to maintaining low prices through continued investment.

Aldi, which currently operates 1,092 stores in the UK and Ireland, intends to open an additional 40 stores in 2027 as part of its £900 million investment plan. The company aims to reach 1,500 stores across the UK, focusing on underserved communities. The investment will also bolster its warehouse and distribution infrastructure. Aldi also plans further price reductions leading up to Christmas, following a £340 million price cut campaign this year.

The UK government is considering measures to ban misleading pricing practices, such as fake "was" prices and invented reductions. Hurley has previously argued that the debate should extend beyond verifying crossed-out prices to questioning whether the final price offers genuine value.

In 2024, the Competition and Markets Authority (CMA) found that supermarket loyalty pricing generally offers "genuine savings," with 92% of analyzed loyalty-priced products showing discounts. Customers could save up to 25% by purchasing these items. However, Hurley countered that "A discount can be genuine, and the final price can still be expensive. A loyalty badge is not proof that shoppers are getting the best value."