Aldi boss dismisses supermarket price war claims

The chief executive of Aldi’s UK operations has downplayed the notion of a supermarket price war, pointing to record sales and steady growth as evidence of the company’s continued dominance. Speaking recently, Giles Hurley, who has led the German-owned discount chain since 2018, described claims of aggressive pricing moves from competitors as exaggerated.

Asda’s chairman, Allan Leighton, has made public commitments to strengthen the company’s position as the UK’s cheapest supermarket, sparking renewed speculation about competitive pricing battles across the sector. However, Hurley dismissed these claims as a “phoney war,” arguing that Aldi’s consistent approach to low prices has solidified its standing in the market without the need for drastic pricing adjustments in response to rival strategies.

Recent figures from Kantar, the market research firm, reveal that Aldi’s market share hit a record 11.1 per cent in the 12 weeks leading up to 18 May, representing a 6.7 per cent rise in sales—the highest growth rate since early 2023. In contrast, Asda’s sales fell by 3.2 per cent, dropping its market share to 12.1 per cent. Hurley highlighted that Aldi had outperformed Asda in food and drink sales within the past 12 weeks, underscoring the chain’s growing strength in the sector.

Aldi continues to attract British shoppers in unprecedented numbers, with 69 per cent of households now visiting its stores—a new record. Its appeal lies in the company’s focus on private-label products and a straightforward pricing model. Hurley noted that this approach has resonated with customers, who are increasingly turning to Aldi’s award-winning own-label brands for quality and affordability without sacrificing choice. The company’s “Specially Selected” range alone is worth over £1 billion annually.

Hurley also acknowledged the challenges posed by inflation, particularly in the beef market, yet maintained that Aldi’s commitment to supporting British agriculture had been unwavering. The grocer has invested heavily in its supply chain to ensure it offers competitive prices while remaining a major player in UK retail.

The company’s expansion strategy remains robust, with plans for 40 new store openings across the UK by the year’s end. Hurley remarked on how Aldi has redefined discount retail in Britain over the past 30 years, saying, “We’re standout for our everyday low prices. There’s no need for subscriptions, offers, or memberships—our value proposition is accessible every single day.”

An Asda spokesperson, however, was quick to dispute some of Aldi’s claims, calling the interpretation of market data “highly selective” and emphasising Asda’s strengths across other key categories and formats, including Asda Express and the George clothing range. Despite this, Aldi’s rapid growth shows no signs of slowing, positioning the retailer as a formidable competitor in the ever-evolving supermarket sector.