Aldi eyes toppling Asda as Christmas demand drives growth plan

Aldi's UK arm is pressing to climb past Asda and into the top three of Britain's grocery market, using Christmas demand and aggressive pricing as a catalyst for growth. Chief executive Giles Hurley told reporters the discount retailer intends to topple Asda and push toward the upper tier alongside Tesco and Sainsbury's in the near term.

During a visit to Aldi's busy Daventry store in Northamptonshire, shoppers filled their trolleys with boxes of chocolates and bottles of Prosecco as the retailer laid out its festive plan. The company projects substantial holiday volumes, including about 46 million pigs in blankets and 49 million mince pies this season. A kilo of carrots is priced around 5p as part of a price-cut strategy Aldi says is funded by the business and does not affect payments to growers or suppliers. The range of holiday offerings also includes gingerbread mulled wine and Wagyu beef, underscoring Aldi's push into trendier options.

Hurley, who joined Aldi in 2000, has steered the chain from a perceived quirky discount retailer to Britain's No. 3 food retailer by volume. He said the firm is "very much in a growth phase" and reaffirmed the focus on price leadership, adding that Aldi aims to deliver the lowest prices on every basket for shoppers. He noted the ambition to expand its footprint and product range while maintaining affordability.

The festive push comes as Britain’s retailers face cost pressures after the Budget, with many hoping for business-rate relief that did not materialize. Hurley called for a "full-scale review" of the business rates system and a level playing field for retailers, arguing reforms could spur investment in British high streets and support the economy. He stressed that policies should encourage investment and not disproportionately penalize large employers, saying the sector needs a framework that sustains jobs and choice for consumers.

Despite the headwinds, Aldi plans to invest £1.6 billion over the next two years, opening about 80 new stores on top of its current 1,060 outlets. "We're very much in a growth phase, we want to continue to invest in the country," Hurley said, insisting the emphasis remains on price certainty for customers at every visit. He also acknowledged the challenge of forecasting when Aldi might overtake Asda, describing such projections as difficult and cautioned against crystal-ball gazing. "No one has had, or does have, our ambition and will to grow," he said.

Aldi’s origins trace back to 1946, founded by Theo and Karl Albrecht, who built the business on cost savings to keep prices low in post-war Britain. The company grew into a global retailer controlled by the Albrecht family. In recent years, the chain’s rapid expansion has paused at a market share around 10.5%, similar to a year ago, as rivals respond with price cuts and new store openings of their own. Analysts say price matching for everyday items has narrowed Aldi’s edge and that new stores can cannibalize customers in nearby towns.

Still, Hurley argues that demand for affordable groceries remains robust in a climate of persistent inflation. He pointed to the willingness of customers to seek value in long shopping trips and everyday essentials, underscoring that Aldi plans to focus on value while exploring longer-term supply arrangements with farmers and suppliers to deliver stability and investment confidence. "Investment in British retail in high streets is fundamentally important to the economy, and a business rates landscape which supports that would be a positive," he said. He emphasized that the company intends to maintain close collaboration with farmers, aiming to provide predictable, long-term contracts that help growers invest with confidence.

The broader market backdrop remains uncertain as companies weigh strategy against cost pressures and regulatory changes. Hurley’s comments reflect a disciplined growth plan that pairs aggressive pricing with a long-term investment horizon, even as the competitive landscape in UK groceries remains intensely contested.