Supermarket boss says more prices will drop by Christmas as new stores set to open

‘We know times are still challenging for customers and we are doing everything we can to support them’

Aldi said it would also spend £1.4 billion on expansion over two years as it works towards a long-term plan for 1,500 sites in the UK (PA Wire)

Aldi is expected to cut more prices in the run up to Christmas, the supermarket’s boss has said.

The German discounter’s UK business said it has seen negative price inflation in recent months, in a sharp reversal from soaring food and drink prices witnessed by shoppers over the past two years.

It came as the grocer reported surging sales and profits for last year and unveiled plans to spend £800 million to ramp up expansion across the UK in its largest annual investment.

The retailer, which currently has more than 1,020 stores, said it still sees more opportunity to grow its customer base, amid long-term ambitions to expand to 1,500 stores.

The 23 Aldi stores opening by the year end include:

– Leytonstone, London

– Muswell Hill, London

– Fulham Broadway, London

– Gosforth, Northumberland

– Pwllheli, Gwynedd, Wales

– Castle Douglas, Dumfries and Galloway, Scotland

– Horsham, West Sussex

– Mere Green, Birmingham

– Billericay, Essex

– March, Cambridge

– Penistone Road, Sheffield

– Cheadle, Greater Manchester

– Caterham, Surrey

– Ashford, Kent

Chief executive of Aldi UK and Ireland Giles Hurley (Aldi/PA) (PA Media)

On Monday, Giles Hurley, chief executive of Aldi UK and Ireland, pointed towards some signs of improving customer sentiment as price inflation eases.

“Our price inflation has come down ahead of other supermarkets, and are the only one where our prices are lower than a year ago,” Mr Hurley claimed.

“We know times are still challenging for customers and we are doing everything we can to support them.

“We’ve invested £100 million more in price reductions and I’m pretty optimistic that customers will continue to see price reductions in stores before Christmas.”

The boss did however add that the retailer has seen more shoppers shift towards its premium product, saying that “consumer pressure is easing in some areas”.

It came as the discount supermarket said it was opening 23 stores by the end of the year and revamping another 100 shops as part of the record investment plans.

Aldi – Britain’s fourth largest supermarket with more than 45,000 colleagues – said it would also spend £1.4 billion on expansion over two years as it works towards a long-term plan for 1,500 sites in the UK.

Details of the investment came as German-owned Aldi said it notched up its highest ever annual UK and Ireland sales growth of 16% to £17.9 billion for 2023, up from £15.5 billion in 2022.

Pre-tax profits more than tripled to £536.7 million from £152.6 million in 2022, which Aldi said was also down to cost savings across the business.

An Aldi store on the Old Kent Road in London (Anthony Devlin/PA) (PA Archive)

The group’s UK boss said the firm was launching hundreds of premium range products for shoppers to trade up over Christmas.

Mr Hurley said: “For every £1 of profit generated last year, we’re investing £2 this year – opening more stores and building the supply infrastructure to bring high-quality, affordable groceries to millions more families the length and breadth of Britain.”

He added: “As we head towards the Christmas trading period, we’re all set to launch our biggest and best ever seasonal range, including hundreds of premium range products at unbeatable prices for our customers.”