Aldi UK Chief Warns Shoppers Could Face Higher Food Prices if Budget Adds Costs for Retailers

Published: 15 September ‘2025. The English Chronicle Desk

The UK chief executive of Aldi has cautioned that shoppers may see further increases in food prices if the government introduces policies that raise costs for businesses. Giles Hurley, who leads Aldi in the UK and Ireland, made the remarks following the release of the supermarket chain’s annual results, which showed a modest rise in sales to £18.1 billion, but a decline in profits of more than 20%.

Hurley highlighted the potential knock-on effect of policy decisions on everyday prices, telling the BBC: “Any policies which affect the operating costs of business should be considered very, very carefully because of the very real risk they find their way … back into the food system and on to prices.”

Aldi attributed the fall in profits – from £552.9 million to £435.5 million – to a combination of price promotions, higher wages for staff, and an extensive store expansion programme. The warning comes amid growing concern over rising food prices in the UK. The Food and Drink Federation (FDF) recently revised its forecast for food and drink inflation upwards to 5.7% by the end of the year, compared with an earlier prediction of 4.8%.

The FDF noted that prices for food and non-alcoholic drinks have increased by 37% between January 2020 and July 2025, attributing much of the rise to domestic policies, including the April increase in employer national insurance contributions and the introduction of the new packaging tax. Hurley added that both measures have already “rippled through to prices on the shelf edge.”

In response to the pressure on the sector, more than 60 retailers recently wrote to Chancellor Rachel Reeves, urging her to avoid imposing further taxes in the upcoming November budget.

Despite these challenges, Aldi has reaffirmed its commitment to growth in the UK, announcing plans to invest £1.6 billion to open 80 new stores over the next two years. The retailer currently operates 1,060 stores in the UK and Ireland and aims to expand to 1,500. The German discounter is now closing in on Asda, the country’s third-largest supermarket, with a market share of 10.8% compared to Asda’s 12.1%, according to analysts at Kantar.

Hurley acknowledged the ongoing pressures faced by shoppers, emphasizing Aldi’s commitment to affordability: “Shoppers are still finding things difficult, which is why we are laser-focused on keeping prices low. We are more determined than ever to meet that demand and bring Aldi prices closer to millions more customers through our record investment programme.”