Aldi boss accuses rival supermarkets of 'duping' customers with misleading loyalty scheme prices

Aldi's chief executive has accused rival supermarkets of 'duping' shoppers with loyalty discounts that 'start with unrealistically high prices'.The German-owned discounter, which is the only major UK supermarket without a loyalty scheme, said such promotions were giving an unfair impression of discounts.Aldi UK boss Giles Hurley claimed loyalty cards were unhelpful to customers when budgeting, adding that retailers should instead impose 'realistic reductions'.He said: 'When it comes to the loyalty propositions that other supermarkets offer... question marks remain around how much of the value is perceived rather than real.'Of course, promotions can supplement everyday low prices when they're meaningful, when they're real and when they show realistic reductions.'However, when promotions start with unrealistically high prices and come down to prices which aren't that competitive and dupe customers, we would view that as loyalty that isn't supportive, that isn't transparent and doesn't help customers plan and budget.'But retail consultant Ged Futter told BBC News that Mr Hurley's comments were 'a distraction from the fact that Aldi is under pressure in the UK'.Mr Futter, a former Asda buyer, said Aldi was 'on a meteoric rise until about two years ago' but it was 'now growing behind the main supermarket pack'. Aldi UK chief executive Giles Hurley has accused rival supermarkets of 'duping' shoppersIt comes as Aldi, Britain's fourth largest grocery chain, ramps up efforts to increase its share of the UK grocery market, which currently stands at 10.6 per cent.However, data from Worldpanel by Numerator showed the supermarket's sales have slowed in recent months, rising just 0.7 per cent in the 12 weeks to September 6.Mr Hurley spoke out as Aldi pledged to invest nearly £1billion in dozens of new stores next year and its warehouse network despite seeing annual earnings dip lower. Loyalty schemes at the UK's supermarkets Tesco – ClubcardSainsbury's – NectarAsda – Asda RewardsMorrisons – Morrisons MoreWaitrose – myWaitroseLidl – Lidl PlusCo-op – Co-op MembershipMarks & Spencer – SparksIceland – Bonus Card The chain reported operating profits down 1 per cent at £432.9million in 2025, against earnings of £435.5million the previous year as investment in prices and a rising wage bill offset a 5 per cent increase in sales.Pre-tax profits meanwhile dipped by 3.8 per cent to £400.5million for the year. It said turnover lifted to a record £19 billion over the year.Mr Hurley added: 'The cost of food remains one of the biggest pressures on households across the country.'Recent droughts at home and events overseas have highlighted just how fragile our food system is and why food security must be a long-term national priority.'He told reporters that 'we aren't seeing any systemic food shortages' but admitted that conditions were 'unprecedented' over the summer.It comes amid warnings that the El Nino weather system could lead to more droughts and floods later this year, putting further pressure on global food security.Mr Hurley also stressed that it is 'hard to predict' the outlook for food inflation but said the company would continue investments in order to keep prices low compared with UK supermarket rivals. He added: 'We're working hard to make good food more affordable for every family – cutting prices on everyday essentials, signing long-term supplier agreements to help increase home-grown production, and continuing to bring affordable groceries to even more communities through our store opening programme.'Aldi, which already has 1,092 shops across the UK and Ireland, said it would open another 40 stores in 2027 as part of a £900million record investment plan for next year.The group has previously said it wants to reach 1,500 shops across the UK with a drive to 'focus on communities cut off from affordable groceries due to lack of local choice or competition'.The investment plan will also include work on its warehouse and distribution network.Aldi also said it would continue cutting prices in the run up to Christmas, following a £340million price cut campaign so far this year.The Government is currently looking at banning misleading pricing practices used by retailers to make discounts appear better, such as fake 'was' prices, invented reductions and misleading recommended retail prices.But Mr Hurley wrote in The Mail on Sunday last month: 'The debate about misleading discounts should go further than checking whether a crossed-out price once appeared on a shelf.'There is another question worth asking: after every card has been scanned and every promotion applied, is the customer actually getting a low price?'In 2024, the competition watchdog found that loyalty pricing at UK supermarkets does offer 'genuine savings', but customers should still shop around as it is not always the cheapest option.The Competition and Markets Authority (CMA) said that after analysing 50,000 loyalty-priced products, it found 92 per cent offered savings on the usual price – and customers can make savings of up to 25 per cent by buying loyalty priced products.Referring to this report, Mr Hurley added: 'That is significant, but it only tells us part of the story. A discount can be genuine, and the final price can still be expensive. A loyalty badge is not proof that shoppers are getting the best value.'