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

Aldi's chief executive has accused rival supermarkets of misleading customers with loyalty discounts that begin with unrealistically high prices. Giles Hurley, the head of the German-owned discount grocer, stated that these promotions create a false impression of savings and are unhelpful for household budgeting.

Aldi, the only major UK supermarket chain without a loyalty program, argues that such schemes provide perceived rather than real value. Hurley suggested that promotions are only beneficial when they offer meaningful and transparent reductions from competitive everyday prices. He criticized schemes that start with inflated prices, only to be reduced to non-competitive levels, calling this practice "duping customers."

Retail consultant Ged Futter suggested Hurley's comments might be a tactic to distract from Aldi's own competitive pressures in the UK market. Futter noted that while Aldi experienced significant growth, its expansion has recently lagged behind major supermarket competitors.

Aldi, currently the fourth-largest grocery chain in the UK with a 10.6% market share, is actively working to increase its presence. However, recent sales data from Worldpanel by Numerator indicated a slowdown, with a 0.7% increase in sales in the 12 weeks leading up to September 6.

Despite these sales figures, Aldi has announced plans to invest nearly £1 billion in expanding its store network and warehouse infrastructure in the upcoming year. The company reported a 1% dip in operating profits to £432.9 million for the fiscal year 2025, compared to £435.5 million the previous year. This decrease occurred even as a 5% increase in sales was offset by investments in pricing and higher wage costs. Pre-tax profits declined by 3.8% to £400.5 million, while turnover reached a record £19 billion.

Hurley emphasized the ongoing challenge of food costs for households, exacerbated by recent droughts and international events that have highlighted the fragility of the food system and the importance of food security. While acknowledging unprecedented conditions over the summer and the potential impact of the El Niño weather system, he stated that no systemic food shortages are currently being observed.

Aldi plans to open an additional 40 stores in 2027 as part of its £900 million investment plan for the next year. The company aims to eventually operate 1,500 stores across the UK, focusing on underserved communities. The investment will also bolster its warehouse and distribution capabilities.

As part of its strategy to keep prices low, Aldi has already implemented a £340 million price cut campaign this year and plans further reductions leading up to Christmas. The UK government is also examining measures to combat misleading pricing practices, such as fake 'was' prices and invented reductions.

Regarding the Competition and Markets Authority's (CMA) findings that supermarket loyalty schemes offer genuine savings, Hurley acknowledged the data but maintained that a loyalty badge does not guarantee the best value, as final prices can still be high even with a discount.