Supermarket chains react to Aldi’s rock-bottom prices with “Price Match” sign

Many people in Great Britain also like to shop at Aldi. Mainly because of the prices. The competition is reacting – and is now adjusting many prices to the discounter.

London – Aldi, known as a discounter, is one of the cheaper food retailers in Germany alongside Lidl and Netto. Aldi is represented not only here, but also in Great Britain with over 1,000 branches. The discounter is now the third largest supermarket in the United Kingdom with a market share of ten percent.

Supermarket chains in Great Britain declare price war on Aldi

Last year, Aldi UK, with its more than 1,000 stores, achieved record sales of £17.9 billion (€21.2 billion) in the UK. This represents a 16 percent increase in sales within a year, which was met with little enthusiasm by British supermarkets and discounters. In response, supermarket chains such as Asda, Morrisons, Tesco and Sainsbury’s are introducing so-called “Aldi Price Match” offers.

The aim of this campaign is to offer products in its own supermarkets at Aldi prices. However, Aldi itself is not impressed by the competition’s “price match”. Giles Hurley, Managing Director of Aldi in Great Britain and Ireland, announced further price reductions. This could have a significant impact, especially during the Christmas season. Hurley said he was “quite optimistic” that the price reductions would be implemented before the start of the Christmas season. This is also a reaction to a slight reduction in market share.

Great Britain becomes Aldi’s third largest market

The British supermarket chains seem to be convinced of their strategy. However, retail expert Stephan Rüschen believes that this does not necessarily give them an advantage. “This gives Aldi a particularly prominent position.” “Aldi actually has this position as the price leader, but there is no need to support this in terms of communication,” he says. For Rüschen, the price match signs are therefore just additional advertising for Aldi.

Stephan Rüschen also wants to orient himself towards Aldi in German supermarkets, although no corresponding signs are put up. If Aldi increases prices, competitors adjust their prices accordingly. Germany remains the most important market for Aldi, followed by the USA and Great Britain. With a market share of ten percent, Aldi is the third largest supermarket in Great Britain. A newcomer to the discount chain has also recently declared war on Aldi and Lidl. (rd/dpa)