Following today’s release of Aldi’s figures for the 52 weeks ending 31 September 2024; Aliyah Siddika, associate analyst at GlobalData, a leading data and analytics company, offers her view: “Aldi’s FY2024 results reveal a significant slowdown in growth for its UK and Republic of Ireland operations, with sales increasing by just 1.3% to £18.1bn. These results mark a sharp decline from the previous year’s impressive growth of 15.6%, reflecting fierce competition and price matching from bigger players in the market. The supermarket chain has also experienced a notable decrease in operating profit, which fell by 21.2% to £435.5m, in stark contrast to the 209.5% increase in FY2023. Aldi attributes this decline in profits to its strategic investments aimed at maintaining low prices for customers, rewarding its workforce, and expanding its footprint through 31 new store openings. Considering competitors are increasingly matching Aldi on price, the chain must move beyond being seen solely as a value destination, highlighting its product range and quality, and investing in initiatives that build long-term customer loyalty.
“Despite the slowdown, the grocer remains committed to its expansion strategy, with plans to invest a further £1.6bn in store expansion over the next two years. This investment will equate to 80 new stores over the period, with 21 of these set to launch within the next 13 weeks. This strategy reflects Aldi’s confidence in its proposition, emphasising that increased accessibility and exposure to more consumers are key to its future success. 31.5% of UK food & grocery shoppers purchased from Aldi in the past year, up 0.3ppts on the previous year, but still lower than the 47.2% who shopped at market leader Tesco*. The gap reiterates that while Aldi has disrupted the sector, it still has ground to make up, and store openings are an integral part of that effort to become more consumers’ first-choice grocer.
“Aldi’s ongoing support of British farmers and sourcing local products demonstrates its commitment to sustainable long-term growth. While the major British supermarkets face criticism for not backing British farmers amid changing international trade agreements, Aldi stands out in this regard, which could attract customers who value quality and local sourcing. To capitalise on this unique position, Aldi should more prominently highlight its dedication to British products on its packaging, like how it has done with its Specially Selected Wagyu range. This approach should resonate with customers, especially since the emphasis on British sourcing has proven successful for Aldi in the past, particularly during the festive season.
*GlobalData’s 2025 How Britain Shops survey of 9,000 respondents.
