Aldi has announced its largest ever package of annual investment to accelerate its expansion across Britain.
The supermarket said it planned to open 23 new locations before the end of the year, marking a record £800m annual investment programme and a £1.4bn two-year plan.
It is also refurbishing 100 existing stores this year as well as expanding its network of distribution centres and updating technology infrastructure to support its growth. The retailer, which currently has over 1,000 stores, has previously announced plans to scale to 1,500 stores across the UK.
Aldi announced record investment alongside its latest annual results for the 12 months to December 2023, which showed sales increased by £2.4bn to £17.9bn, an increase of 16 per cent and its highest ever period of sales growth.
The company said its pre-tax profit had increased to £536.7m (2022: £152.6m), driven by record sales combined with greater efficiencies across its stores and central functions compared with the prior year. Reported operating profit increased to £552.9m (2022: £178.7m), representing a margin of 3.1 per cent.
Aldi said it had invested almost £100m in over 300 price cuts in the last three months, and spent an extra £1.3bn with its 5,000 British suppliers last year, with that amount set to increase further as it established more long-term supply partnerships.
The supermarket has invested £79m so far this year in pay increases, including a second rise in June for store assistants from £12.00 to £12.40, and from £13.55 to £13.65 for those within the M25.
“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,” Giles Hurley, chief executive for Aldi UK and Ireland, said.
“For every £1 of profit generated last year, we’re investing £2 this year – opening more stores and building the supply infrastructure to bring high-quality, affordable groceries to millions more families the length and breadth of Britain.”
