Aldi boss says some of rivals’ loyalty discounts ‘dupe’ customers

by | Sep 28, 2026 | Business

Aldi boss says some of rivals' loyalty discounts 'dupe' customers

Aldi’s UK chief executive Giles Hurley has leveled criticism at competing supermarket chains regarding their loyalty pricing strategies. He contends that certain discount programs begin with unrealistic price points and then reduce to levels that do not represent genuine value to shoppers. Hurley distinguished between beneficial promotional tactics and what he termed deceptive practices, stating that meaningful discounts should reflect authentic reductions from genuinely competitive baseline prices rather than engineered markdowns from inflated starting points.

Aldi remains distinctive among major UK supermarket operators by declining to operate a loyalty scheme despite their widespread adoption by competitors. The UK’s competition watchdog completed a review of supermarket loyalty pricing in 2024 and determined that shoppers “almost always make a genuine saving” through such programs. Hurley has previously expressed comparable concerns about discount scheme practices.

Aldi reported financial results indicating a 5% sales increase to £19bn for 2025 compared to the previous year, though operating profits declined slightly over the same period. The retailer attributed the profit decrease to elevated personnel compensation costs alongside capital investments in infrastructure and pricing adjustments. The company claimed to have invested £340m in price reductions during the recent period.

Retail analysts have suggested Hurley’s comments may reflect broader competitive pressures facing the German-owned chain. Once experiencing rapid expansion in the UK market, Aldi’s growth trajectory has moderated relative to major supermarket competitors, with observers noting the historical price advantage has narrowed. Despite these challenges, Hurley indicated the business continues attracting new customers and announced plans for 40 additional store openings next year as part of a £900m investment initiative, alongside expanded long-term agreements with domestic suppliers.

Article Attribution | Read More at Article Source

Article summary produced by Claude AI