How Aldi boss intends to see off supermarket rivals and bring discount store within reach of all UK shoppers
Aldi will not stop the “relentless” roll out of its value supermarkets across the UK, despite attempts by rival supermarkets to scupper its growth, its chief executive has said.
Giles Hurley, the head of UK and Ireland operations for the German discounter, told The Telegraph that they are going to bring stores within easy reach of every customer in the UK “no matter what.”
Hurley, who has headed the supermarket for five years, has accused unnamed supermarkets of trying to hinder the brands expansion by lodging planning objects to almost 40 planned new shops across the UK – which has slowed and blocked its roll out.
He said: “If you look at the price gap between Aldi and the more expensive traditional supermarkets, it has been very consistent for years and I guess one of the ways to try to prevent customers from taking advantage of that is to slow down or stop openings.”
The chief also claimed that rivals felt “threatened” by the quality and value of items Aldi sells – also revealing that he believes legal disputes between the grocer and its rivals were motivated by intentions to sabotage the chain.
Its most recognised legal battle was between Marks and Spencer after the luxury chain accused it of copying its Colin the Caterpillar cake – M&S sued Aldi, with the pair eventually settling an agreement.
“It doesn’t matter what segment of the market you’re serving or believing you serve, you feel threatened by the quality and value that we now offer,” Giles said.
In the wake of the cost of living crisis Aldi has grown in popularity amongst shoppers looking to find the best prices for their food shop.
Aldi previously said it was eyeing 60 new sites in London alone as it looks to increase its market share and target price conscious consumers in the capital.
It is also looking to inject £400m in store development this year, as Aldi has grown in popularity amongst shoppers in the midst of the cost of living crisis.
Aldi’s power over consumers has forced supermarkets such as Tesco to launch price matches on its products.
It comes as sales in the German supermarket rose 25.8 per cent in the four weeks leading to 19 March and it achieved a market share of 7.4 per cent, according to data by Kantar.
Myron Jobson, senior personal finance analyst Interactive Investor, said: “Aldi’s aggressive site rollout strategy underlines confidence among the bosses of the German discount retail chain that it can continue to profit from the money saving trend that has seen an influx of shoppers visiting its stores in recent history over the long term.
“It is no secret that many shoppers have switched from major retailers to Aldi and its rival Lidl amid the cost of loving squeeze on household budgets.
He added: “While inflation is expected for fall significantly from the second half of the year to 2.9 per cent by the new year, Aldi is banking that its new customers will prove sticky instead of reverting back to old shopping habits. Money saving habits are difficult to unpick once they’re bedded in.”