Aldi to cut prices of over 300 products in bid to fend off competition from other
Aldi has announced it is cutting the price of hundreds of products as it hopes to fend off competition from Lidl and others in an escalating price war.
The German discounter said it has invested a further £100million to cut the cost of 330 grocery goods, including meat, fresh fruit and vegetables, and cupboard staples such as suncream.
The country’s fourth largest grocer is vying for market share as competitors including Lidl continue to gain ground. Aldi’s own grip on the grocery market has slipped, falling from 11 per cent to 10.8 per cent over the past year.
Sales grew by 0.7 per cent over the three months to July 12, according to closely watched data from researchers Worldpanel by Numerator.
Price battle: Discount supermarkets have been gaining customers from traditional grocers
By contrast, Lidl saw sales rise 8.6 per cent over the same period. Its market share reached 8.8 per cent, compared to 8.3 per cent a year ago.
In May, the supermarket overtook Morrisons for the spot as Britain’s fifth biggest supermarket.
Examples of price cuts at Aldi include an 80p cut on its 21-Day Matured Sirloin Steak to £4.49, a 40p reduction in the price of its cheddar cheese to £2.99, and 30p off diced chicken breasts to £3.99.
Julie Ashfield, chief commercial officer at Aldi UK, said: ‘It’s never been more important that everyday grocery essentials and family favourites remain affordable. We’re committed to keeping prices low on popular products because we know it can make a real difference, helping families to make the most of the summer.’
The discounters are hoping to poach even more customers from traditional major supermarkets after seeing their market shares surge over the past few years.
The British Retail Consortium (BRC), which represents household names from Tesco to Marks & Spencer to Primark, has called on the new Government to take action to help retailers fend off higher food prices.
The group says that retailers are coming under strain from factors under the UK Government’s control – as well as from the wider world.
Its chief executive, Helen Dickinson, has said ministers should not be ‘treating global instability as cover for inaction on costs of its own making’, after businesses have been hit with tax increases in recent Budgets.
Retailers have been hit with £6.5billion in additional employment costs from hikes to employer National Insurance contributions and the National Living Wage, according to the BRC.
And businesses have also called on the Government to take a second look at the taxes and levies that increase businesses’ energy bills.
Marks & Spencer boss Stuart Machin said earlier this year that it was ‘just not sustainable’ to heap extra costs onto firms’ bills to fund Government energy policies – from building nuclear power stations to maintaining the country’s power networks.
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