Aldi, the well-known budget supermarket, has experienced a slight decrease in its UK market share, dropping by 0.2% to settle at 10% in 2023. This shift comes despite the company achieving record sales and a notable increase in profits during the past financial year.
Recent data indicates that Aldi’s UK division, headquartered in Warwickshire, documented a market share decrease of 0.2%, reducing its share to 10% in 2023. This minor decline occurred even as the supermarket reported record sales of £17.9bn for the financial year, a substantial rise from £15.5bn the previous year. Additionally, Aldi’s pre-tax profit soared to £536.7m in 2023, a significant jump from £152.6m.
The company attributes this impressive financial performance to both record-setting sales figures and increased operational efficiencies across its stores and central functions. Despite the decrease in market share, Aldi remains focused on expansion, aiming to open 23 new stores before the end of 2024. These new openings are part of an ambitious £800m annual investment programme and a broader £1.4bn two-year plan. Notable locations for the new stores include Muswell Hill, London, and Caterham, Surrey.
Moreover, Aldi is not just focusing on new store openings. The supermarket chain plans to refurbish 100 existing stores this year, expand its network of distribution centres, and upgrade its technology infrastructure to support further growth. With over 1,000 stores already operating, Aldi aims to increase this number to 1,500 across the UK, reinforcing its commitment to growth and customer service.
Giles Hurley, Aldi’s Chief Executive for the UK and Ireland, highlighted the company’s commitment to providing value to customers. He stated, ‘British shoppers are voting with their feet and choosing Aldi as their first-choice supermarket. We’re responding with our biggest ever annual investment in Britain.’
Additionally, the supermarket has pledged to invest £2 for every £1 of profit generated last year into opening more stores and enhancing its supply infrastructure. This investment aims to provide high-quality, affordable groceries to millions more families across Britain. A spokesperson for the company noted, ‘We’re also investing at record levels to cut prices, reward our amazing colleagues, and support more causes in our local communities.’
As the festive period approaches, Aldi is preparing to launch an extensive seasonal range, which includes hundreds of premium products offered at competitive prices. This initiative underscores the company’s strategy to attract more customers and increase sales during the crucial Christmas trading period.
Although Aldi has seen a minor decline in its market share, the supermarket’s strong financial performance and aggressive expansion plans underscore its resilience and commitment to growth. The company remains focused on providing value to customers while continuing to invest significantly in its operations and infrastructure.