Profits for the supermarket chain fell dramatically last year as the company faced rising costs and invested in pricing.
The German discounter’s UK operation revealed that pre-tax profits fell by 86.5% to £35.7 million in 2021, compared to 2020.
However, executives have promised that they will continue to prioritize lower prices for their customers over short-term profits – and the chain has gained 1.5 million more customers since last year.
‘Preserving our price discount and rewarding our people will always be more important to us than short-term profit,’ Aldi UK and Ireland CEO Giles Hurley said.
‘Because we are privately owned, we can keep our promises even when times are tough.’
According to Giles Hurley, CEO of Aldi UK and Ireland, rewarding customers will always be more important than short-term profit.
Aldi has 1.5 million more customers than last year as people seek out its low-cost offerings. (Image from the file)
In order to assist customers facing rising energy and fuel costs, the supermarket has also promised to have the ‘lowest grocery prices in the UK.’
Over the past year, Aldi has seen continued growth in customer numbers as shoppers sought to keep their grocery bills low.
According to Kantar, Aldi surpassed Morrisons as the UK’s fourth largest supermarket earlier this month.
When compared to the same period last year, sales at the retailer increased by 18.7% in the 12 weeks ending September 4.
It also stated that it has gained 1.5 million new customers since last year as people seek out its discount offer.
Customers, according to Mr Hurley, rely on them the most during the cost-of-living crisis.
‘The cost-of-living crisis is worsening, and it is being felt by millions of households across the UK,’ said Mr Hurley.
‘It’s during times like these that our customers rely on us the most, which is why we’re focusing on keeping our longstanding price promise by offering the lowest possible prices in Britain, every single day.’
Aldi also announced that 16 new stores will open in the next 12 weeks as part of its ongoing £1.3 billion expansion plan.
According to research, household savings have more than halved since the beginning of the year, as families have had to dip into their savings to cover soaring energy bills and the weekly food shop.
Aldi has also confirmed that 16 new stores will open in the next 12 weeks as part of its ongoing £1.3 billion expansion plan (file photo)
According to KMPG research, the average UK household’s food, energy, and mortgage repayments have increased by £145.50 so far this year.
It means that families will have to pay nearly £1,800 more to cover their bills over the course of the year, amid fears that prices will rise even further.
According to a survey, costs for people aged 35 to 44 have risen by £194.40 per month since January, more than any other age group.
According to The Times, those who had savings going into 2022 now only have 43% left.
Approximately one-third of the 3,000 consumers polled said they have to use their savings to cover essential expenses. A further 10% revealed that they are using all of their savings to get by.