Aldi warns rival supermarkets that they will not be able to match its new price cuts
Aldi plans to increase its store count across the UK to 700Reuters

Aldi has pledged deep price cuts on its products. It has even warned other UK supermarket chains that they will not be able to match its low prices after these cuts are implemented. "I wanted to set the record straight that we will never be beaten on price — that is cast in stone," Matthew Barnes, chief executive at Aldi, said.

The move comes as a response to the recent price cuts promised by other chains such as Asda and Morrisons. While the former promised to invest £500m (€644.3m, $725.2m) in an effort to reduce prices of products on its shelves, the latter's chief executive David Potts recently adopted a price crunch initiative and said "[Morrisons will] cut every penny we can".

Sainsbury's too recently announced its plans to open 10 new Netto stores in the North of England in an effort to step up its battle against discount retailers such as Aldi and Lidl. In a different approach towards pricing, Sainsbury's also announced earlier this week that they would fade out multi-buy offers on its groceries by August 2016 as it was no longer appreciated by their customers.

However, Barnes said the offers and deals that were being offered by its rival supermarkets were deceptive. Accusing them of "smoke and mirrors", he promised that he would not allow them to beat Aldi when it comes to low prices.

The German discount chain has proposed to cut prices on about 60 of its products, which is 4% of its total portfolio of 1,500 products. Some of these include steaks, orange juice and whole chickens. These cuts will make its products very competitive. For instance, Aldi's Norpak butter would retail at £1.39, making it about 30% cheaper than branded Lurpak butter, which is sold at Morrisons.

"So long as the quality matches the brands, they are happy to pay because the discount is so compelling," Barnes said, adding shoppers are happy to purchase Aldi's own-brand products. He added that the discount retailer now had the second biggest private brand of nappies after Pampers.

While Aldi has made public its plans to increase store count across the UK to 700, it reported a £10.1m decline in 2015 pre-tax profits of £250.6m, according to The Telegraph.