ALDI Set to Surpass ASDA as UK's Third-largest Supermarket？

According to GlobalData's analysis, Aldi could overtake Asda to become the third largest supermarket in the UK by 2028, as Asda's market share declines.Aldi's pre-tax profits rose significantly, while Asda returned to profits of £180m in 2023, although its sales were still higher than Aldi's (£21.9bn). About 18% of Asda's sales come from e-commerce, while Aldi recently shut down its click-and-collect service.

Expansion plan

Aldi is accelerating its expansion with plans to invest £800m and aim to open 1,500 stores across the UK. Aldi currently has more than 1,020 stores in the UK and plans to open one new store a week by the end of the year. Asda, by contrast, has 1,200 stores but faces debt problems and is selling some to ease financial pressure. In addition, Asda has recently reduced the opening of new convenience stores in order to focus on improving the operation of existing stores.

Price comparison

According to a recent survey, Aldi continues to attract customers with its low prices, becoming the cheapest supermarket in August 2024. Aldi has also launched a back-to-school fund to help families cope with back-to-school costs. Asda, for its part, has invested in price-matching and loyalty programs to boost customer satisfaction.

Although Aldi dominates in terms of value and profit, with a recorded profit of £536.7 million providing more funding for its expansion, Asda still has higher sales. Analysts say Asda needs to make significant improvements to its pricing and customer experience if it is to maintain its position in the market. As consumer demand for discount supermarkets increases, it remains to be seen whether Aldi will be able to overtake Asda to become the third largest supermarket