ALDI ANNOUNCES £800M INVESTMENT IN BRITAIN AFTER RECORD SALES
- Aldi to invest an unprecedented £800m to accelerate expansion in Britain
- 23 new stores opening in the next 16 weeks
- Almost £100m of price cuts on over 300 products in the last three months, cutting grocery bills for millions of shoppers
- Latest annual results show its highest ever sales and increased profits
The UK’s cheapest* supermarket, Aldi, has announced its largest ever package of annual investment to accelerate its expansion across Britain.
Aldi said its focus on lowering prices and opening stores would bring ‘high-quality, affordable groceries to millions more British families’, whilst creating thousands of jobs and more opportunities for British suppliers.
The supermarket said it planned to open 23 new locations before the end of the year, including Muswell Hill, London and Mere Green, Birmingham – 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** (2022: £15.5bn) – an increase of 16% and its highest ever period of sales growth – as British shoppers continued to prioritise value despite falling inflation. Latest data shows Aldi has a market share of 10%***.
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%**.
Aldi – which ranks as the UK’s most popular supermarket**** – said it had invested almost £100m in over 300 price cuts in the last three months, from fish goujons and chicken breasts to potatoes and peaches to breakfast cereal and Basmati rice.
Recent price comparisons by consumer group Which? hail Aldi as undefeated this year as the UK’s cheapest grocer*, showing the traditional Big Four are currently on average 14% more expensive. Its latest ‘Can’t Match This’ TV ad campaign pokes fun at competitors attempting to ‘price match’ products in ongoing supermarket price wars.
Aldi said it 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. Earlier this year, it confirmed a £750m deal with the family-owned, Kent-based fruit farm, AC Goatham & Son – which will include the first ever ‘Aldi Orchard’ on a 200-acre plot on New Green Farm in Gravesend.
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 – the best hourly rates in the sector.
Giles Hurley, Chief Executive Officer for Aldi UK and Ireland, said: “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.
“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.
“We’re also investing at record levels to cut prices, reward our amazing colleagues and support more causes in our local communities. All while creating thousands more jobs and even more opportunities for our growing base of British suppliers and farmers.”
He added: “As we head towards the Christmas trading period, we’re all set to launch our biggest and best-ever seasonal range, including hundreds of premium range products at unbeatable prices for our customers.”
ENDS
* Which? Supermarket price comparison for August, published 5th September
**Group figures to YE 31 December 2023 for UK & Ireland
*** Kantar Worldpanel data, 12 weeks or 52 weeks to 4th August 2024
****YouGov ‘The Most Popular Supermarket Chains’ (Q2 2024