Aldi is set to make its largest-ever annual investment in the UK, following a remarkable surge in sales. The supermarket giant is investing £800 million to expand and refurbish stores across the country, as it continues to strengthen its foothold in the British retail market.
The move comes after Aldi reported a 16% boost in sales for 2023, with revenue for the UK and Ireland growing by £2.4 billion, from £15.5 billion in 2022 to £17.9 billion by the end of 2023. Pre-tax profits saw a staggering leap from £152.6 million to £536.7 million, thanks to a combination of record-breaking sales and increased operational efficiencies.
Operating profits also grew to £552.9 million, with Aldi achieving a 3.1% profit margin. In response, the discounter has announced plans for an £800 million investment, which will see the opening of 23 new stores and the refurbishment of 100 existing ones before the end of the year. The investment will also be used to expand Aldi’s distribution network and upgrade its technology infrastructure to support its rapid growth.
Aldi, currently operating more than 1,000 stores in the UK, aims to increase this number to over 1,500 in the coming years.
Giles Hurley, CEO of Aldi UK and Ireland, commented: “British shoppers are voting with their feet and choosing Aldi as their go-to supermarket. We’re responding with our biggest-ever investment, using every £1 of last year’s profit to invest £2 this year. We’re opening more stores, enhancing our infrastructure, and bringing high-quality, affordable groceries to even more families across Britain.
“We’re also making record investments to lower prices, reward our fantastic colleagues, and support local communities, all while creating thousands of jobs and providing more opportunities for our growing network of British suppliers and farmers.”
In August, Aldi made the decision to discontinue its click-and-collect service, which had been introduced during the pandemic. The move reflects the evolving online grocery market, with online sales shrinking to less than 13%, down from the pandemic peak of around 15%.
During the cost-of-living crisis, Aldi surged ahead of Morrisons to become the UK’s fourth-largest supermarket, capitalising on shoppers’ increasing demand for budget-friendly options. However, recent data shows Aldi’s market share has slipped slightly, with the retailer holding 10% of the market in the 12 weeks leading up to 4 August, down by 20 basis points compared to the previous year.
Despite this, Aldi’s ambitious expansion and investment strategy suggests the supermarket is well-positioned to maintain its competitive edge and continue attracting shoppers across the UK.
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