By Michael Susin
Aldi, the German low-cost supermarket chain, has announced that its sales surged to a record high last year, driven by increasing living costs that led consumers to seek out discount products.
According to the British branch of Aldi, sales for 2022 reached £15.5 billion ($18.97 billion), up from £13.6 billion in 2021. The company also reported one million more customers visiting its stores compared to the previous year. Moreover, Aldi's operating profit rose to £178.7 million from £60.2 million.
In an effort to provide even greater value to its customers, Aldi has invested over £350 million in price reductions across 650 items so far this year. The company also plans to implement further price cuts leading up to the holiday season.
Market research firm Kantar's latest report highlights Aldi's impressive growth, with sales increasing by 17% in August alone and the company capturing a 10% market share.
Despite some signs of inflation easing, households in the UK continue to face significant financial pressure due to higher living costs. As a result, shopping habits have evolved significantly over the past 18 months, with fewer trips to the supermarket, an increased preference for own-label products, and a greater willingness to switch to alternative supermarkets in search of better value, according to Giles Hurley, Aldi U.K. and Ireland Chief Executive.
To support its ongoing expansion and improve its overall infrastructure, Aldi U.K. has committed to investing £1.4 billion over the next two years. This investment will include the expansion of its distribution and store network, as well as enhancements to its existing stores and technology infrastructure.
The anticipated investments are expected to create a total of 6,000 new jobs in 2022, in addition to the 6,000 permanent roles created last year.
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