Supermarket chains engage in price war with Aldi

As a discounter, Aldi often has cheaper prices than other markets. The competition in Great Britain is reacting – and catching up.

London – As a discounter, Aldi is one of the cheaper food suppliers in Germany, alongside stores such as Lidl and Netto. Aldi also operates over 1,000 stores in Great Britain, where the discounter is involved in fierce price wars.

British supermarkets engage in price war with Aldi

With its more than 1,000 stores, Aldi UK generated record sales of £17.9 billion (€21.2 billion) in the UK in 2023. The discounter was able to increase its sales by 16 percent within just one year, which British supermarkets and discounters apparently did not like. Supermarket chains such as Asda, Morrisons, Tesco and Sainsbury’s are therefore introducing so-called “Aldi Price Match” offers.

Products will also be offered at Aldi prices in the company’s own supermarkets, or at least that is the plan. Aldi itself does not want to be 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 major impact, especially during the Christmas season. Hurley was “quite optimistic” that the price reductions would take place before then. This is the company’s reaction to a slight loss of market share. An up-and-coming discounter has 1,800 new stores.

Expert is critical of Aldi sign in supermarkets

The British supermarket chains seem to be convinced of their concept. However, retail expert Stephan Rüschen assumes that this would not necessarily give them an advantage. “This would certify that Aldi has 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 said. The expert also sees the price match signs as just additional advertising for Aldi.

According to Rüschen, this orientation towards Aldi even exists in Germany, although no corresponding signs are put up. But if Aldi increases prices, competitors will stick to the new price. Germany is still the most important market for Aldi, followed by the USA and Great Britain. Aldi’s market share on the island is now ten percent – making the discounter the third largest supermarket in Great Britain. There will soon be more Aldi branches on holiday islands too. (rd/dpa)