Aldi to invest £900m in UK and open 40 more stores next year

Aldi, the budget supermarket chain, announced plans to invest £900 million in the UK and open 40 more stores in the coming year, as it reaffirmed its confidence in its growth strategy. After reporting its record annual revenue of £19 billion, Aldi said it intends to boost its investment in the UK by approximately £100 million, reaching a total of £900 million. Currently, Aldi operates 1,092 stores in the UK and Ireland and aims to expand its presence further, targeting 1,500 outlets in the region by the end of the plan.

Aldi's UK and Irish operations reported a 5% increase in sales, reaching a record £19 billion last year. However, profits fell by £2.6 million to £433 million due to price cuts amid inflationary pressures. Giles Hurley, Aldi's boss for the UK and Ireland, expressed growing confidence in the company's expansion, stating that they are now the third-largest UK supermarket by items sold and customer numbers, trailing behind Asda and Lidl.

Hurley acknowledged that consumers are feeling the impact of persistent inflation, and while the outlook for grocery inflation is uncertain, Aldi remains committed to maintaining its position as the cheapest place to shop. To achieve this, Aldi will continue its price-cutting strategy and invest in maintaining its low-cost groceries. The supermarket chain has also signed an agreement with Deliveroo to have its couriers pick, pack, and deliver Aldi groceries through its app, further solidifying its market presence.

In the long term, Aldi plans to increase its store count to 1,500 in the UK and Ireland. The company currently sources at least half of its products through long-term supplier agreements and spends £14 billion annually with British suppliers, giving producers and manufacturers increased confidence in investing and contributing to a more self-sufficient British food system.