Aldi boss: Shoppers are switching in their droves

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The cost of living crisis is causing customers to switch to the discounter in droves, according to the boss of the company.

In the last 12 weeks, the company has gained more than 1.5 million customers, according to the CEO.

Morrisons is now the fourth biggest supermarket in the UK.

Shoppers are looking to lower their bills and that has led to a rise in the number of discounters.

As inflation has gone up, there has been an unprecedented change in consumer behavior.

He said that customers are switch in their droves. Customers are looking for value more than ever before and are choosing to shop at a discount store.

"All of the traditional full-price supermarkets are coming to Aldi," he said.

In the 12 weeks to September, sales at the discount store were up 19% compared with the same period last year. It will add up to an extra billion or so pounds in sales this year if it continues to grow at this rate.

"We haven't seen growth rates like this in a long time," said Mr Hurley.

A rapid increase in sales is being seen by another discounter.

Extra sales are being driven by the fact that both businesses are opening new stores. The higher prices push up the value of sales.

The popularity of the company is broad-based.

Some of our sales can be allocated to new stores.

Most of the money is coming from within the business. It's not just about new shoppers, it's also about existing shoppers shopping at the same store and using it as a first stop.

Cheaper own-label products are being put in shopping baskets by consumers.

Private label ranges now account for half of the market compared to branded products.

The cheapest own label ranges have increased in sales.

There are a lot of non- branded items at the store.

In the last three months, the business has seen a 20% increase in sales of its nappy range, and a 29% increase in its premium Specially Selected range.

The chain's results for the last financial year were released today.

It missed out on the online grocery boom during the Pandemic as it only racked up a small increase in sales.

The pre-tax profits fell. The net profit margin is less than 3%.

The fall was due to Covid costs and increased staff pay.

It is a privately-owned business that gives it an advantage.

We don't have to worry about short term results.

The chain is part of a larger German retailer. Traditional supermarkets are adding little, if any, new space.

The industry of selling supermarket food is very competitive.

The bigger your sales, the better deals you can get from your suppliers, says Duncan Brewer, head of the retail and consumer products strategy team.

That is the effect. The harder things can get if your volume goes down. For the main supermarkets, it's all about taking someone else's slice because the grocery pie isn't getting any bigger.

Just over 970 stores are owned by the German discounter. It plans to open another 16 stores before the end of the year, with a goal of hitting 1200 stores by the year 2025.

"Aldi isn't going to get things all its own way", says the editor-in-chief of the Grocer magazine.

When the big four chains raised prices too much, the discounters stole a march and began their expansion.

He said that pricing is more complex than it used to be. It isn't easy. The established players have developed their entry-level ranges to be more competitive with some price matching against the discounters on hundreds of lines.

The discounter prices in Europe are 15% cheaper than in the US. They are having to work harder.

Key products have been price-matched by the two supermarkets.

A temporary limit on the number of products customers can buy to keep up with demand has been put in place by the store.

The cost pressures are enormous for every supermarket and the big rivals are determined not to make the same mistakes again. Food prices are rising at a faster rate than in the past.

He wouldn't be drawn on how much more food price inflation is still to come, saying that it was difficult to predict the future.

He claimed that the more efficient business model of Aldi is better suited to insulate customers from rising prices.

The profit margin is going to be sacrificed this year to protect shoppers.

Value is the cornerstone of our business. "No matter what it takes, I'm determined to keep the pressure on."