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The UK business of German discounter Aldi posted a 21 per cent fall in profits despite an increase in sales to just over £18bn, as the supermarket chain kept prices low and raised pay for store staff.
The food retailer, which is now the UK’s fourth largest by market share after expanding aggressively over the past two decades, said operating profit dropped to £435.5mn for the year to December 31, down from £552.9mn, giving it a margin of 2.4 per cent — slightly below the industry average. Sales increased to £18.1bn from £17.9bn in 2024.
Aldi UK’s chief executive Giles Hurley said shoppers “are still finding things difficult”, adding that he was committed to low prices “no clubs, no gimmicks, no tricks”.
His comments come after struggling rival Asda said earlier this year that it was prepared to take a significant hit to profits to fund price cuts, triggering a response from Tesco and Sainsbury’s, the country’s two largest grocers, which have signalled they have the firepower to respond.
Aldi first revealed a long-term goal to have 1,500 stores in the UK two years ago. It has 1,060 outlets and on Monday said it planned to invest £1.6bn over the next two years to open a further 80 shops.
The supermarket chain increased pay twice this year, adding to the wage pressures it encountered last year.
This is a developing story
