Aldi’s 2022 financial results, released on Monday, show operating profit in the UK almost tripled year-on-year to £178.7million.
The low-cost German retailer recently overtook Morrisons to become the country’s fourth-largest retailer, with a 10.2 percent market share as of August, according to Kantar.
With food price inflation peaking at 19.2 percent in March – a 45-year high – cost-conscious households have been flocking to budget supermarkets, with Aldi alongside Lidl as the fastest-growing brands.
Aldi’s 1,000th store opened in Woking earlier this month, and the company has just upped its long-term UK target from 1,200 to 1,500.
But in the face of fierce competition, just how much cheaper are the German disruptors than the “big four” today?
Consumer watchdog Which? compares thousands of prices every month to determine the cheapest places for people to buy their groceries and household essentials.
When buying a trolley full of 37 basics, in August Aldi emerged as the least expensive brand of all for the 15th month in a row.
The receipt totted up to £65.21, over a pound cheaper than second-placed Lidl (£66.53).
The “big four” all came in significantly pricier, starting with Asda in third (£71.48), Tesco (£74.00), Sainsbury’s (£74.12) and Morrisons (£75.37).
According to Aldi boss Giles Hurley, the cost-of-living crisis has changed shopping habits for good. He said: “Whilst grocery inflation has started to ease, it’s clear that people remain under real pressure from its impacts.”
Food and non-alcoholic beverage prices in the UK increased by 13.6 percent over the past 12 months, and remained a key driver of the overall 6.7 percent Consumer Price Inflation rate.
Cheaper own-label ranges are booming as people count the pennies ever more carefully. By value, they now make up half of all products sold.
Mr Hurley added: “If you look in volume terms that figure is much bigger and at the moment own-label products are growing at twice the rate of branded goods. Why would [shoppers] go back?”