The CEO of Aldi UK, Giles Hurley, has dismissed narratives surrounding a potential price war with rival supermarket Asda, asserting that Aldi has recently surpassed Asda in sales.

Hurley, who has been at the helm of Aldi since 2018, commented on the discussion around price competition that has intensified following Asda chairman Allan Leighton’s return and his commitment to positioning Asda as the UK’s most affordable supermarket. This vow has sparked fears of renewed price skirmishes among major grocery chains, with Tesco cautioning that it could negatively impact profits.

In response, Hurley expressed skepticism about the validity of claims regarding aggressive pricing strategies by competitors, characterizing it as a “phoney war”. He noted, “We’re not seeing particularly aggressive moves from competition” and suggested that rival supermarkets are merely adjusting prices without providing true savings for consumers. He elaborated, saying, “More expensive supermarkets often shuffle prices around, dropping them in some areas while raising them in others.”

In a rare interview, Hurley highlighted Aldi’s competitive performance, revealing, “We sold more food and drink in the last 12 weeks than Asda”. While he refrained from positioning Aldi within a specific rank in the grocery market, he pointed out, “It’s an interesting soundbite that we’re now the third biggest in sales”, affirming that in terms of volume, Aldi has been the third largest for some time.

Aldi, which operates around 1,000 stores across the UK, has not felt the need to modify its pricing strategy in light of competitor actions. Hurley stated, “We haven’t seen a scale of prices to warrant that, although we’re always seeking to ensure that our customers get the very best value”.

Recent data from Kantar indicates that Aldi achieved a market share high of 11.1 percent in the 12 weeks leading up to May 18, with sales increasing by 6.7 percent — the fastest growth observed since early 2023. In contrast, Asda’s sales declined by 3.2 percent during the same timeframe, leading to a decrease in its market share to 12.1 percent.

Aldi’s expansion can be attributed to its extensive store openings and established reputation for low prices, prompting competitors to implement price-matching policies. Hurley noted that favorable weather has boosted recent sales, particularly for barbecue-related items, salads, beverages, and ice cream.

Currently, nearly 70 percent of British households shop at Aldi, marking a new penetration record of 69 percent, according to Hurley. He emphasized the importance of Aldi’s focus on private-label products, saying, “Customers have realized they can have their cake and eat it,” referring to the declining stigma associated with discount brand shopping.

Hurley acknowledged the impact of rising inflation in certain categories, particularly mentioning beef, which is currently facing significant cost pressures. Aldi has committed to investing in British beef production as part of its agricultural initiatives.

Reflecting on Aldi’s evolution in the UK market since its inception over three decades ago, Hurley remarked, “We’ve redefined what discount retail is. Our promise of everyday low prices stands out; there’s no membership fees, no waiting for special offers to access our value — it’s available daily. Coupled with our award-winning product range, our specially selected brands generate over a billion pounds in annual revenue.”

Hurley affirmed Aldi’s dedication to future growth in the UK, with plans to open 40 new stores by year’s end.

An Asda spokesperson responded to Hurley’s remarks, arguing that “the data upon which these claims are based is highly selective and excludes key grocery categories such as alcohol, household products, and pet food, which are frequently purchased by customers”. The spokesperson further noted that it fails to account for Asda’s robust performance in other sectors, including George, Asda Express, and Fuel, which provide a significant competitive edge over limited-range discounters.