Aldi to invest £900m in new stores after record turnover

Aldi, the discount supermarket chain, plans to spend £900 million on opening new stores next year, amidst rising household pressures due to the Iran war, droughts, and concerns over food inflation. The UK's fourth-largest supermarket reported record sales growth, reaching a record £19 billion in turnover in 2025, after a five percent increase. This growth was attributed to the company's focus on low prices, with Aldi cutting costs across products like butter, meat, and frozen fish.

The grocer, which currently operates 1,092 stores in the UK, aims to expand its presence to 1,500 stores. The investments in expanding stores and warehouse network are part of Aldi's strategy to make groceries more affordable for families. Aldi's CEO, Giles Hurley, highlighted the fragility of the food system due to droughts and potential "super" El-Nino weather patterns, emphasizing the importance of food security.

Despite a stable food inflation rate of 1.3% in August, industry forecasts predict a significant rise to 6.4% by July next year, putting additional strain on households. Aldi's operating profit remained flat at £433 million, while its gross margin decreased slightly to 2.3%, driven by investments in price, infrastructure, and worker pay. The company has increased hourly wages for its shop-floor workers twice this year, reaching £13.50 in the UK and £14.88 in London.

With a 10.6% share of the UK grocery market, Aldi has been the cheapest supermarket in the UK for the past five years. However, the dominance of Aldi and Lidl has put pressure on traditional British supermarkets like Tesco, Sainsbury’s, and Asda, prompting them to compete with Aldi's price-match ranges.