Giles Hurley, Aldi’s UK and Ireland chief executive is urging Rachel Reeves to not raise retailers costs in the Autumn Budget as she risks higher food prices for shoppers.
Hurley said higher retail costs will “find their way” into people’s pockets and inflationary pressure are already affecting shoppers.
He said the retail sector “has been really clear that we would strongly advise that any policies and measures that are adopted don’t add costs to business operations because of the risk that they can find their way through to the food sector.”
He warned the “ripple affect” may well affect consumers’ confidence should the Chancellor raise costs for retailers.
In the 2024 Autumn Budget Reeves raised employer’s national insurance and new packaging taxes which has made food inflation worse.
As a result shopping habits has changed which has made Aldi “more popular than ever,” Hurley said.
“It’s a trend at the moment where customers are seeking to treat themselves at home, rather than going out,” Hurley said.
“If you asked customers across the length and breadth of the country, I think they would say that inflationary pressures are persistent and they’re urgent.
“I very much see that we can be part of the solution to that challenge, which is staying laser-focused on delivering the lowest prices in the market – hence why we’ve invested £300 million this year so far on reducing prices, seeking to offset inflationary pressures.”
Total sale increased to £18.1 billion in the UK and Ireland in 2024 compared to £17.9 billion the year before.
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