Aldi boss says some loyalty discounts 'dupe' customers
Aldi is the only major supermarket chain that doesn't operate a loyalty scheme, which are hugely popular and used by millions of shoppers.
Aldi boss says some loyalty discounts 'dupe' customers
Aldi’s UK chief has accused rival supermarket chains of misleading shoppers in some instances with loyalty discounts that begin from "unrealistically high prices" before being reduced.
Chief executive Giles Hurley said discounts are useful "when they're real and when they show realistic reductions", but criticised what he described as unrealistic reductions that "dupe customers".
Aldi is the only major supermarket chain not to run a loyalty scheme, despite such schemes being extremely popular and used by millions of shoppers.
The UK’s official competition watchdog examined supermarkets’ loyalty pricing schemes in 2024 and found that shoppers "almost always make a genuine saving".
Former Asda buyer and retail consultant Ged Futter told the BBC that Hurley’s remarks were "a distraction from the fact is that Aldi is under pressure in the UK".
He said Aldi was "on a meteoric rise until about two years ago" but is "now growing behind the main supermarket pack".
"The price gap isn't as clear as it once was," he added.
Hurley, who has made similar remarks about discount schemes before, was speaking as Aldi announced a 5% rise in sales to £19bn for 2025 from 2024.
But operating profits dipped slightly over the same period, which the retailer said was because of higher staff pay and investment in infrastructure and prices.
Hurley said the company was still drawing in new customers despite intense competition across the sector.
"We are the only retailer where the price of your weekly shop is actually cheaper this summer than last summer," said Hurley
He said the business was focused on "everyday low prices, not short-lived offers that disappear the following week".
"Promotions can supplement every day low prices when they're meaningful, when they're real and when they show realistic reductions.
"However, when promotions start with unrealistically high prices – and come down to prices which aren't that competitive and dupe customers – we would view that as loyalty that isn't supportive, that isn't transparent and doesn't help customers plan and budget."
Aldi said it had spent £340m this year cutting prices. The German-owned chain also said it planned to open 40 new stores next year as part of a £900m investment programme and to expand long-term agreements with British suppliers.
Hurley said recent droughts and global events had exposed weaknesses in food supply chains, arguing that increasing domestic production should be a national strategic priority and would help reduce the UK’s exposure to shocks that can drive up food prices.