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Aldi widens the price gap against competitors and pledges to never be beaten on price
12 Feb 2016


Following the launch of Morrisons’ Price crunch initiative, which attempts to compete with the discounter, Aldi has made a wave of price reductions in order to maintain its price advantage of up to 38%* against the Bradford-based supermarket. The price cuts are on a range of its core lines including fresh meat, fresh fruit and vegetables and other household staples.
Independent data from Kantar Worldpanel shows that Aldi continues to widen the margin between itself and competitors.
 
In the 12 weeks to 3rd January, the average item at Aldi was 29% cheaper compared with the average at eight competitors*. In January 2015 it was 26% cheaper.
 
Today, Aldi is launching a major nationwide advertising campaign to ensure shoppers understand it remains by far the lowest-priced supermarket in the UK.
 
Matthew Barnes, Aldi Chief Executive, said: “Our competitors continue to claim that they are closing the price gap.  We think it is important to make it clear to shoppers that any challenge to our price leadership position will not succeed.
 
“Aldi remains Britain’s lowest-priced supermarket by a significant margin and that is a position we will retain next month, next year and forever.
 
“While other retailers talk up price cuts and infuriate shoppers with misleading price-match schemes, we keep it simple with a consistent promise: whenever you visit Aldi, you’re paying the lowest prices in Britain.
 
*Kantar Worldpanel data: average pack price per supermarket, data for 12 weeks to 3rd January 2016
Retailer Average price per pack (£) Gap vs Aldi
Aldi 1.13 -
Tesco 1.57 39%
Sainsbury’s 1.73 53%
Asda 1.50 33%
Morrisons 1.56 38%
Waitrose 2.08 84%
Iceland 1.51 34%
The Co-operative 1.57 39%
Lidl 1.21 7%
Average (all except Aldi) 1.59 29%
 
Matthew Barnes continued: “There’s no compromise when we cut prices. Thanks to our efficiency, we’re still able to pay the highest starting pay in the sector. From this month, we now pay at least £8.40 an hour to all our workers and more in London. This is significantly higher than the recommended National Living Wage.
 
“Importantly, it’s Aldi that’s funding these cuts, not our suppliers. Our model is to agree secure, long-term contacts with suppliers to ensure they are paid a fair price and have certainty. This is one of the reasons why Aldi is the top performing supermarket in the Grocery Code Adjudicators’ supplier survey.”
 
Aldi is stepping up its store expansion programme in 2016 as it responds to demand from parts of the UK where it is currently under-represented.

This year, it will open more than 80 supermarkets – a record number – taking its total store portfolio to over 700.
 
The new stores that Aldi opens in 2016 are expected to generate more than £1bn of additional sales when fully operational.

ENDS
View our 'Notes to Editor'

Aldi has strengthened its standing as the UK’s best value supermarket by implementing a new wave of price reductions.