Aldi UK boss criticizes rivals' loyalty discounts as misleading

Aldi's UK boss has accused rival supermarket chains of duping customers in some cases with loyalty discounts that start with "unrealistically high prices" and then drop.

Chief executive Giles Hurley said discounts are helpful "when they're real and when they show realistic reductions", but hit out at what he said were unrealistic reductions which "dupe customers".

Aldi is the only major supermarket chain that doesn't operate a loyalty scheme, which are hugely popular and used by millions of shoppers.

The UK's official competition watchdog investigated supermarkets' loyalty pricing schemes in 2024 and concluded shoppers "almost always make a genuine saving".

Former Asda buyer and retail consultant Ged Futter told the BBC Hurley's comments were a "a distraction from the fact is that Aldi is under pressure in the UK".

He said Aldi was "on a meteoric rise until about two years ago" but that it is "now growing behind the main supermarket pack".

"The price gap isn't as clear as it once was," he added.

Hurely, who has made similar comments on discount schemes in the past, was speaking as Aldi reported a 5% increase in sales to £19bn for 2025 from 2024.

However, operating profits had fallen slightly over the same period, which the retailer said was due to higher staff pay as well as investments in infrastructure and prices.

Hurley said the business was attracting new customers despite fierce competition across the sector.

"We are the only retailer where the price of your weekly shop is actually cheaper this summer than last summer," said Hurley

He said the business was focussed on "everyday low prices, not short-lived offers that disappear the following week".

"Promotions can supplement every day low prices when they're meaningful, when they're real and when they show realistic reductions.

"However, when promotions start with unrealistically high prices – and come down to prices which aren't that competitive and dupe customers – we would view that as loyalty that isn't supportive, that isn't transparent and doesn't help customers plan and budget."

Aldi said it had spent £340m this year on cutting prices. The German-owned chain also announced plans to open 40 new stores next year as part of a £900m investment programme and expand long-term agreements with British suppliers.

Hurley said recent droughts and global events had highlighted vulnerabilities in food supply chains, arguing that boosting domestic production should be a national strategic priority, helping to reduce the UK's exposure to shocks that can push up food prices.