Aldi UK CEO Criticizes Rival Loyalty Discounts as 'Ducking'
Giles Hurley claims some supermarket loyalty schemes inflate prices before applying discounts, while Aldi maintains a strategy of 'everyday low prices.'
Aldi's UK chief executive, Giles Hurley, has accused rival supermarket chains of misleading customers through loyalty discount schemes that he claims start with "unrealistically high prices" before offering reductions. Hurley stated that such practices "dupe customers" and do not provide genuine value.
Aldi, the only major supermarket in the UK that does not operate a loyalty scheme, is focusing on its strategy of "everyday low prices." Hurley emphasized that promotions are beneficial only when they represent "real and realistic reductions." He contrasted this with schemes that begin with inflated prices and then decrease to merely competitive levels, which he views as unsupportive and lacking transparency for consumers trying to plan their budgets.
Despite the criticism of competitor tactics, Aldi reported a 5% increase in sales to £19 billion for 2025 compared to the previous year. However, operating profits saw a slight decline, attributed by the retailer to increased staff wages and investments in infrastructure and pricing. Hurley noted that the company is attracting new customers amidst intense competition within the grocery sector.
"We are the only retailer where the price of your weekly shop is actually cheaper this summer than last summer," Hurley stated, highlighting Aldi's commitment to consistent price reductions over temporary offers.
The UK's competition watchdog investigated supermarket loyalty pricing schemes in 2024 and found that shoppers "almost always make a genuine saving." However, retail consultant Ged Futter suggested Hurley's comments might serve as a distraction, arguing that Aldi is facing increased pressure in the UK market. Futter observed that Aldi's growth has slowed compared to its main competitors in recent years, diminishing the previously clear price advantage.
Aldi has invested £340 million in price reductions this year. The German-owned company also announced plans to open 40 new stores next year as part of a £900 million investment program and aims to extend long-term agreements with British suppliers. Hurley also called for boosting domestic food production as a national strategic priority, citing vulnerabilities in global supply chains exposed by recent droughts and international events, which can lead to food price increases.