Aldi vows to keep down prices in the face of 2022 cost of living crunch | City & Business | Finance
Inflation is increasingly weighing on retailers with recent months seeing food prices climb year on year, as higher operating costs begin to be passed on to consumers. According to recent data from market research firm Kantar around £15 was added to the average monthly shopping bill in December. Reporting its results over the Christmas period though Aldi reaffirmed its commitment to being the UK’s cheapest supermarket and offering the lowest grocery prices to shoppers in 2022. Aldi UK CEO Giles Hurley said: “As we look ahead, the top priority for most families this year will be managing their household budgets in the face of rising living costs.
“As the cheapest supermarket in Britain, Aldi will always offer the lowest prices for groceries, no matter what, and continue to support our British farmers and producers.”
Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown predicted: “Discounters like Aldi should continue to benefit from the income squeeze, with shoppers tempted to seek out cheaper products and downscale from more expensive brands.
“Aldi is clearly gearing up for that shift, guaranteeing the lowest grocery prices in 2022.
“There is a risk that could come at a hit to margins, given higher input costs so keeping volumes high will continue to be the driving force in the months to come.”
The supermarket saw record sales over Christmas, up 8.1 percent in December on pre-pandemic levels.
According to Kantar, Aldi was the only supermarket to grow its sales in December.
The company reports more than 43 million mince pies, 21 million pigs-in-blankets and 118 million Brussels sprouts sold with more than 5.5 million bottles of sparkling wine going to Christmas and New Year celebrations.
Mr Hurley said: “Our premium Specially Selected range notched up its highest ever sales.
“We saw strong demand for our award-winning beers, wines and spirits.
“Stand out popular products included our Specially Selected Exquisite Chesham Bronze Turkey as well as our English Sparkling Wine.”
Kantar’s annual consumer survey also named Aldi’s Christmas advert, featuring mascot Kevin the Carrot, as the most effective of the year.
The advert featured footballer Marcus Rashford whose campaign on child food poverty the supermarket has supported.
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Aldi is now eyeing expansion this year with plans to create 2,000 new jobs in 2022 and invest £1.3bn over the next two years.
This will include opening 100 new stores as well as new distribution centres and upgrades to existing stores.
Workers will also be getting a pay rise with wages increasing to a minimum of £10.10 an hour nationally or £11.55 for those inside the M25.
