Aldi UK’s chief executive has said shoppers are treating themselves with higher-end products as the cost-of-living pressures begin to ease.
Customers are increasingly opting for premium own-brand items, such as Wagyu steak, artisan cheeses, ready meals, and brioche buns, according to the boss.
Aldi UK CEO Giles Hurley told the BBC: “Sales of our specially selected smoked salmon have surged by over 50%.”
It comes as Aldi posted a 16% increase in sales in 2023 and bumper profits. It also reported a sharp rise in pre-tax profit, which grew to £536.7m, up from £152.6m in the previous year.
As food prices surged in 2021, shoppers turned to more affordable supermarket own-brand products, reducing their reliance on big-name brands to cut costs.
However, it’s now the premium own-label category that’s seeing the most growth, not just at Aldi but across the broader grocery market.
Recent data from Kantar shows premium own-label sales have increased by nearly 16% year-on-year, while value own-label products declined 10%.
Part of this trend may be driven by consumers, many still facing financial pressures, choosing to dine at home more frequently and opting for premium store-brand items over pricier branded goods.
“It’s still tough out there for millions of families but inflationary pressures are easing for some,” Hurley told the BBC.
“For others, it’ll be a decision not to use hospitality but to celebrate at home instead.”
With celebrating at home in mind, the German discounter’s specially selected range will make up more than 50% of its overall Christmas offering for the first time.
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