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Germany: Aldi makes a nice increase in sales, but market shares under pressure

Discount Retail Chain Aldi South saw its sales rise by approximately 500 million euros to reach 18.8 billion euros in 2025, yet it is losing market share in Germany's fiercely competitive food retail sector. Positively, Aldi South has consistently enhanced the productivity of its individual stores over recent years. Currently, a single store generates 9.3 million euros in net sales. However, the potential for growth in new markets has been exhausted, allowing competitor Lidl to outperform even within Aldi's own sales territory. Aldi Süd maintains its strategic focus, as 2025 marked the third consecutive year of increased operating results. This growth was mainly due to efficiency improvements, despite a decline in the margin compared to the previous year. The gross margin has remained stable at around 23 percent in recent years, with investments similar to the previous year. With the number of stores constant at 2,022 locations, Aldi achieved growth in existing spaces.


Price leadership is to be maintained

Aldi Süd aims to regain its market share by relying on its traditional strengths and values. Recent austerity measures, including cost reductions in regional staff and headquarters, contribute to this goal and are intended to benefit customers directly. Alongside job cuts, the discounter is strengthening its collaboration with external service providers. The IT and outsourcing company "Tata Consultancy Services" (TCS) recently announced an expansion of its partnership with the retailer.


To achieve this, regular price reductions are expected to boost customer trust further. This is especially evident in the consistently low prices for fruits and vegetables. The goal is to maintain price leadership, which competitor Lidl frequently challenges. To enhance this position, the supply chain needs improvement. There are still too many defective items affecting sales. Automatic stock replenishment, which is not yet fully optimized, is intended to address this issue. Instances have occurred where contracted manufacturers failed to deliver on time and at competitive prices. Reducing suppliers also poses a risk of not compensating for disruptions.


Despite losing market share, Aldi remains one of Germany's top-selling retail chains. The company continues to benefit from strong brand recognition, a clear discount image, and a loyal customer base. However, industry experts note that the upcoming years will be crucial. The food retail sector is undergoing significant structural changes, whether in digitalization, supply chain adjustments, or increasing demands on product supply. 


By March 2026, Aldi is expected to be in a stable position but under significant strategic pressure to adapt in an increasingly dynamic market.



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