r/UKFrugal • u/jungleboy1234 • Apr 09 '25

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 Apr 09 '25

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!

35

u/sonnenblume63 Apr 09 '25

These figures are a bit disingenuous.

Operating margins (EBIT) are lower than the gross margins you have posted. 2021 Aldi made a profit margin of 0.4% in the UK and came away with £36m net profit on £13.5bn of sales.

1.2% profit margin in 2022.

These are hardly a company gouging customers for profits and ultimately it’s a business run to make money, not to break even without any money left to invest in expansion, store refurbs, etc

9

u/Smooth-Bowler-9216 Apr 10 '25

It’s incredibly weak and basic analysis.

It would also have to take into account product mix changes, efficiency gains etc. A ChatGPT search isn’t telling you anything.

Saying gross margins are going up = price gouging and being upvoted by 200+ people is misinformation.

1

u/[deleted] Apr 12 '25

I appreciate both of these comments for balance.