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Ireland: Aldi will move quickly to cut prices as conditions improve

Updated: Nov 6, 2023

Discount Retail Chain Aldi Ireland says it has seen notable changes in the habits of grocery shoppers, which has been accelerated by record inflation levels.

Aldi was commenting as it published its financial results for 2022, outlining record sales and customer numbers, despite a fall in overall profitability as the company's price shielding strategy and increased cost base impacted margin.

In the 12 months to December 2022, Aldi’s turnover in Ireland grew by a further 1.1% to €2.032 billion, up €24 million on 2021. During the trading period, inflation increased reflecting rising wages, higher energy costs, and rising input prices among suppliers.

The retailer said people are shopping around more regularly, but buying less, with more consumers choosing to purchase own-label brands rather than eliminating the product entirely from their shop.

It said that there has been a 7% swing in favour of its own private label products during 2022; over 95% of its assortment range.

Niall O'Connor, Group Managing Director, Aldi Ireland said the results reflect Aldi’s steadfast commitment to staying true to its discounter DNA. "2022 was the year that solidified the changing nature of how we shop. Households, gripped by higher living costs, now buy more own label and smaller pack sizes, shop more often but buy less, and with an even greater emphasis on value. In this climate, Aldi’s 'we won’t be beaten on price’ commitment continued to resonate, reflected in our rising sales and customer numbers in 2022. "We signalled from the very start of the inflationary surge that we would work hard every day to provide the best value in the market for our customers," Mr O'Connor said. "Just as our customers and suppliers faced rising costs day-to-day, so did we. Despite these rising costs, we took the decision to continue to invest in our people, store expansion and sustainable stores refit programme, while mitigating the worst of the rises on our customers.

"We knew it was an approach that would impact our profitability, but over the medium-term, it will continue to prove the right one."

He said while the overall inflationary peak is receding, food inflation continues to be stubbornly high at home and abroad. He said where cost conditions improve, Aldi will move quickly to cut prices. "Earlier this year we cut prices on family staples like bread, milk and butter. We will continue to monitor the backdrop and respond proactively as we enter what is typically a very busy Christmas shopping period for consumers."

Aldi's footprint increased in 2022 with six additional stores opened in Caherciveen, Clonakilty, Ballina, Tuam, Mountbellew and Ardee, while store refurbishments were completed in Dungloe, Blessington, Greystones, Killorglin and Elysian Cork. Its number of stores nationwide now stands at 160, with plans continuing to increase this further.

In September 2023, Aldi announced new contracts with four suppliers, bringing its spend with over 330 Irish suppliers to more than €1.1 billion annually. Aldi recently committed to the new 2024 Living Wage, reaffirming its commitment to being Ireland’s best paying supermarket.


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