Retail giant Aldi has unveiled plans to invest £800 million in Britain as part of an ambitious expansion strategy, following a record year of sales growth.
The supermarket chain, known for its low prices, aims to accelerate its reach across the UK with a series of store openings and price cuts.
Major Store Expansion
In the next 16 weeks, Aldi will open 23 new stores in key locations, including Muswell Hill in London and Caterham in Surrey. The supermarket’s rapid expansion is part of a larger £1.4 billion two-year investment plan, which includes refurbishing 100 existing stores, expanding its distribution centers, and upgrading its technology infrastructure. This will support Aldi’s long-term goal of reaching 1,500 stores nationwide.
Currently operating over 1,000 stores, the retailer’s focus on expanding its footprint will also create thousands of new jobs and provide more opportunities for British suppliers. This is seen as a key part of its strategy to bring “high-quality, affordable groceries” to more British households.
Record Sales and Profits
Aldi’s latest financial results for the year ending December 2023 show the supermarket achieved its highest-ever sales, with revenue climbing by £2.4 billion to £17.9 billion, a 16% increase from the previous year. As UK inflation continues to drop, many consumers have turned to Aldi for its value, helping the chain gain a market share of 10%.
Profit figures also show significant growth, with pre-tax profit rising to £536.7 million, a substantial increase from £152.6 million the previous year. Operating profit surged to £552.9 million, reflecting improved efficiencies across Aldi’s stores and operations.
Price Cuts Amid Supermarket Wars
Aldi has also invested heavily in cutting prices, with almost £100 million spent on lowering the cost of more than 300 products over the past three months. Staples such as chicken breasts, fish goujons, potatoes, and breakfast cereals have all seen price reductions, as Aldi continues to fight for price leadership in the highly competitive grocery market.
Consumer group Which? has consistently ranked Aldi as the UK’s cheapest supermarket this year, with its prices on average 14% lower than the traditional “Big Four” supermarkets. Aldi has taken advantage of its position in its latest “Can’t Match This” advertising campaign, which humorously targets its competitors’ efforts to match its low prices.
Commitment to British Suppliers
Aldi’s strong focus on supporting British suppliers has been a crucial element of its success. Last year, the supermarket spent an additional £1.3 billion with its network of 5,000 UK suppliers. This support is set to grow, with Aldi building more long-term partnerships, including a £750 million deal with Kent-based AC Goatham & Son to create the first-ever “Aldi Orchard” on a 200-acre farm.
Investment in Workforce
Aldi has also prioritized pay increases for its employees, spending £79 million on wage hikes so far this year. Store assistants received a second pay rise in June, with hourly wages increasing to £12.40, and up to £13.65 for those working inside the M25. Aldi now offers the highest hourly rates in the sector.
CEO’s Vision
Giles Hurley, Aldi UK and Ireland’s CEO, emphasized the supermarket’s commitment to expanding its services and supporting local communities. “British shoppers are voting with their feet and choosing Aldi as their first-choice supermarket. We’re responding with our biggest ever annual investment in Britain,” Hurley said.
He added that for every £1 of profit generated last year, Aldi is reinvesting £2 this year to open more stores, cut prices, and enhance opportunities for suppliers. The investment comes at a time when Aldi is also preparing for its biggest-ever seasonal range as it heads into the Christmas trading period.
Aldi’s unprecedented £800 million investment represents a bold commitment to growth, with the retailer aiming to offer even more affordable options to UK families while boosting local economies and job opportunities across the country.