Who is really winning as cost of living crisis sends Aldi profits soaring by millions?

Let me confess, Aldi is the store I use for most of my food shopping. Interspersed with Lidl which, despite popping up all over the place, doesn't happen to have a store particularly near where I live.

So I had considered myself biased towards what has been hailed as the saviour of savvy shoppers, the anti-supermarket hero which the UK desperately needed and which we have taken to heart so very dearly in recent years.

But how much are these so called budget stores really good for our budget and how much are they just using clever marketing to make more money for themselves?

I have previously thought that they are on the side of the shopper. From my very unscientific weekly shop, it certainly feels as if they are cheaper. However, their huge profits increase has made me wonder if I am being duped into something that is no different at all from every other billionaire-owned supermarket.

After all, Which? reported at the end of last year that Aldi and Lidl were the worst supermarkets for price inflation - both up by an average of 19%.

To add insult to injury, it was their own-brand and budget products which had seen their prices hiked most. A cynical person might be forgiven for thinking that targets those with least.

Despite everyone else's economic woes, the German supermarket firm’s UK and Ireland business has reported annual sales of £15.5 billion for 2022 - a considerable increase from the previous year's £13.6 billion.

How much has the average family's push to move away from big brands, to save every penny possible and to hunt out what we perceive to be a bargain amid a cost of living crisis actually saved us each? Well, it has made the owners of Aldi an extra £118 million pounds in 12 months. The firm says the year-on-year increase in operating profit was partly due to Aldi’s profit margin falling to an 11-year low the year before, following investments in Covid-related measures. That doesn't lessen the profits though.

Not a bad business when you consider it is entirely based on telling us we will save money, while quietly raking it in and profiting massively in difficult times. They are selling more. Our shopping habits have changed. We need extra for less - and at the top of the tree sits a family of billionaires who shun the spotlight.

You probably won't have heard their names because they shun publicity but in 1961, the Albrecht Family founded the world’s first discount grocery store in Germany.

The Albrechts are now doing the opposite of worrying about how they'll pay their bills as they rake it in across the world.

According to European Supermarket Magazine, Beate Heister and Karl Albrecht Jr - the children of Karl Albrecht Sr and heirs to Aldi retail fortune - have a net worth of $31.5 billion.

Then there's Theo Albrecht Jr and family who have a net worth of $18.7 billion. Theo Sr, along with his brother Karl Sr were responsible for building the Aldi empire.

Who would have thought that cashing in on 'cheap' food amid an international economic crisis could push you up the Forbes Billionaire List so quickly?

The statement which came out yesterday to accompany news of the profits increase did not shy away from the fact that they do better when the rest of us are doing worse. It also reported an operating profit of £178.7 million for the year, jumping from £60.2 million in 2021 on the back of increased sales. The business saw 17.1% growth year-on-year as shoppers seek to reduce the cost of their weekly shop.

Giles Hurley, chief executive officer of Aldi UK and Ireland said: “Although inflation is easing, households are still under real pressure from higher living costs.

“As a result, Britain is shopping very differently to how it did 18 months ago – fewer trips, more own label products, and switching supermarkets in search of better value.

“What we’re seeing is a new generation of savvy shoppers who’ve turned their back on traditional, full-price supermarkets in favour of transparent, low prices, which is what we’re famous for.

“That’s why we’re still welcoming more and more customers through our doors – people who come to us for our low prices but stay for the award-winning quality of our exclusive brands."

There is no sign of Aldi's growth slowing. It already has more than 1,000 UK shops and plans for a further 18 stores by the end of the year ... then onto an additional 500 shops across the UK over the longer term.

Savvy shoppers or genius marketing? Whichever, those tasty profits leave a bitter taste in the mouth in these difficult times. You can't help but question if the Aldi motto 'great quality should come with everyday low prices' is truly accurate or if that is merely relatively when all stores are hiking up prices and protecting increased profits over being fair to customers.