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Aldi has announced a record £800 million commitment to accelerate its expansion in Britain, marking a significant milestone following its strongest-ever sales performance. This substantial investment will fund the opening of 23 new stores within the next 16 weeks, including locations in Muswell Hill, London, and Caterham, Surrey.
This initiative is part of a broader £1.4 billion, two-year strategy that includes refurbishing 100 existing stores, expanding distribution centres, and upgrading technology infrastructure to support continued growth. Aldi's focus on affordability remains central to its strategy, having recently reduced prices on over 300 products in the past three months. The supermarket, which claims to be the UK's cheapest, has maintained a leading position in price comparisons, outperforming traditional competitors by 14%, according to Which.
The announcement coincided with Aldi's latest financial results for the 12 months ending in December. Sales surged by £2.4 billion, reaching £17.9 billion—a 16% increase from the previous year. Pre-tax profits rose to £536.7 million, driven by record sales and enhanced operational efficiencies. Operating profit also increased to £552.9 million, reflecting a profit margin of 3.1%.
In addition to expanding its store network, Aldi has strengthened relationships with British suppliers, spending an additional £1.3 billion with its 5,000 partners over the past year. This included a notable £750 million agreement with Kent-based AC Goatham & Son to establish the first ‘Aldi Orchard’ on a 200-acre farm in Gravesend.
Aldi has also made significant strides in workforce development, spending £79 million on pay increases this year. Store assistants’ wages have been raised to £12.40 per hour, and £13.65 for those within the M25, making Aldi the highest-paying employer in the sector.
With a current market share of 10%, Aldi's expansion and commitment to affordability are set to attract more shoppers across the UK. Giles Hurley, CEO of Aldi UK & Ireland, stated that for every pound of profit generated last year, the company is dedicating two pounds this year to open more stores and build the supply infrastructure necessary to deliver high-quality, affordable groceries to a larger number of families.
Hurley also highlighted that Aldi is creating thousands of new jobs and increasing opportunities for British suppliers and farmers. As the company approaches the Christmas trading period, it plans to launch its most extensive seasonal range ever, featuring hundreds of premium products at competitive prices.
