The Aldi Effect: How A Discounters’ Rise Is Reshaping UK Grocery

Aldi's business model is reshaping the competitive landscape by being ruthlessly efficient and fiercely appealing to cost-conscious shoppers.

By mid-2024, Aldi had grown its market share to 11.1%, with sales rising at their fastest rate in over a year. In a major shift, almost 44% of UK shoppers were including Aldi in their regular grocery shop—putting it just behind Tesco and Sainsbury’s in terms of consideration.

While the traditional giants remain ahead in size, their growth has been sluggish by comparison. Aldi, on the other hand, continues to surge ahead, attracting hundreds of thousands of new shoppers.

Built For Low Prices

Aldi’s business model is tailor-made for the current economic climate. Even as food inflation has eased to around 1.8%, the discounter remains ahead by offering consistently lower prices—up to 20% cheaper on everyday essentials.

The key lies in its structure: Aldi keeps its range tight, stocking around 200 core lines in most stores, compared to over 20,000 at some traditional supermarkets. This limited assortment, combined with a no-frills store design, smaller teams, and a highly efficient supply chain, keeps costs down and margins strong.

Efficiency Over Everything

Unlike traditional supermarkets, Aldi isn’t just competing on price—it’s rewriting the rules on how grocery retail operates. Its stores are lean, with fewer staff, minimal stock-keeping complexity, and faster turnaround. This allows it to deliver fresh produce and core staples at unbeatable prices, without compromising on quality.

Between 2013 and 2022, Aldi expanded its UK store count by 86%, and it's on track to reach 1,200 outlets by 2026.

What It Means For The Sector

Aldi’s continued growth signals a fundamental shift in consumer behaviour. Shoppers are prioritising affordability and simplicity over brand loyalty.

Traditional retailers are being forced to rethink their strategies as Aldi raises the bar on what value truly means.