Aldi UK Sales Growth Slows as Rivals Gain Ground

Aldi UK sales growth has slowed sharply, rising just 0.8% in the 12 weeks to August 8, according to The Telegraph, citing NIQ data. That compares with growth of 8.2% at Lidl, 13% at M&S, 17% at Ocado and 3.6% at Sainsbury's, raising questions about whether Aldi can maintain momentum against a resurgent Tesco, Sainsbury's and Morrisons.

The slowdown comes as Aldi UK chief executive Giles Hurley criticised supermarket loyalty schemes last week, saying they offer a "false sense of value." The comments drew sharp criticism, with some retail leaders accusing Aldi of being "desperate" and deflecting from its own flagging growth. Clive Black of Shore Capital said Aldi was "protesting a bit too much," noting that shoppers choosing rivals "tells us something about Aldi, and it's not just about price."

Hurley backed the government's investigation into supermarket pricing, arguing shoppers are often misled by discounts even when rivals sell the same product cheaper. Aldi does not operate a loyalty scheme comparable to Tesco's Clubcard or Sainsbury's Nectar Prices. The CMA examined loyalty pricing across around 50,000 products and found little evidence of artificial inflation before discounts.

The UK supermarket competition landscape is also shifting at a regulatory level, with the CMA proposing to extend land-agreement rules to Aldi and Lidl, treating them more like established chains. Black called it "a very significant moment in the development of the discounters" in Britain.

Aldi's pricing has also drawn scrutiny over its impact on British farmers, after the retailer cut potato, carrot and parsnip prices to 4p earlier this year. Aldi has rejected claims its low prices harm farmers, citing £5 billion committed to British farming and food production, including £3 billion to beef suppliers and £1.1 billion to egg production.

Further information on Aldi's UK operations is available via Aldi UK's official website.

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