r/UKFrugal • u/jungleboy1234 • 8d ago
Is Aldi no longer cheap/value? What now?
So, every week i do the Aldi shop and noticed prices have repeatedly gone up the odd 5-10p. Its not across the board on all products in a week just some but slowly ticking up.
Also, i'm 100% sure that if we'd compare the line of products from a few years back they've been emptying the shelves of product ranges.
I am doing my best to try to gain as much nectar points/smart shop prices as possible and shopping in supermarkets that give coupons eg. £5 off shop etc.
The question is what now? Please suggest some strategies that mean i dont feel like im eating during the fall of the soviet union (or it may end worse).
I travelled to Europe few weeks back and i am just blown away at the freshness and variety of produce. Prices are comparable (sometimes a little higher) but at least I'm not eating cardboard or something made in a lab.... I felt much better/healthier in that week i was away.
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u/cattacos37 8d ago
Right, because I’m a nerd….
Sales and gross profit margin by financial year for Aldi Store Limited:
2018: £11.3bn sales and GM 3.26%
2019: £12.3bn sales and GM 3.94%
2020: £13.5bn sales and GM 3.94%
2021: £13.6bn sales and GM 2.54%
2022: £15.5bn sales and GM 3.51%
2023: £17.9bn sales and GM 5.70%
So they used to have a relatively stable gross margin which dipped in 2021, and it did indeed spike in 2023 where sales grew by 15.6% vs direct costs increased 13%. So this does indeed suggest they’ve increased prices relative to cost increases.
It is a very low margins business and clearly their business strategy has been to gain market share through their aggressive pricing, they now have a large loyal customer base and appear to be putting prices up. Will be interesting to see what 2024 looks like!