Aldi UK has ramped-up its investment plans with £1.4billion of spending earmarked for the next two years after sales soared to record levels amid the cost-of-living crisis.
The German discount grocer, which opened its first store in 1990, saw annual sales increase by almost £2billion to £15.5billion for the year to December 2022, reflecting growth of more than 17 per cent and a new record in its 33-year history.
The group, which attracted around one million more customers to stores this year, put the increase in sales down to high inflation.
It said consumer pressure has created ‘a new generational of savy shoppers [who] have turned their back on traditional, full price supermarkets’.
The German discount grocer saw annual sales increase by almost £2billion to £15.5billion for the year to December 2022 – a new record in its 33-year history
The firm, which overtook Morrisons last year to become Britain’s fourth biggest supermarket, reported an operating profit of £178.7million, up from £60.2million from the prior year.
Giles Hurley, chief executive officer for Aldi UK and Ireland, said: ‘Although inflation is easing, households are still under real pressure from higher living costs. As a result, Britain is shopping very differently to how it did 18 months ago – fewer trips, more own label products, and switching supermarkets in search of better value.
‘What we’re seeing is a new generation of savvy shoppers who’ve turned their back on traditional, full-price supermarkets in favour of transparent, low prices, which is what we’re famous for.
‘That’s why we’re still welcoming more and more customers through our doors – people who come to us for our low prices but stay for the award-winning quality of our exclusive brands.’
Earlier this month, the German discount grocer revealed an ambitious goal to grow the number of British stores by 50 per cent.
It was already planning to open 1,200 outlets in the UK by the end of 2025 but is now targeting 1,500 shops over the long term to satisfy growing demand.
In its most recent report, the firm also said it had already invested over £350m in price reductions so far this year across 650 items, with further reductions expected in the run up to Christmas as inflation continues to fall back.
Just this month, it lowered prices on 55 products across fruit and veg – around one third of the range.
It said its rate of investment in the UK would increase in the next two-year period to more than £1.4billion, including work to expand its distribution and store network as well as improving existing stores and technology infrastructure to support growth.
Its expansion will create 6,000 new jobs in total this year, adding to the 6,000 permanent roles created last year.
Hurley added: ‘There are still communities across the UK that don’t have easy access to quality, low price groceries and that’s something we want to address through our expansion, with plans to increase our investment even further over the next two years to £1.4bn in new and improved stores and distribution centres, creating thousands of jobs for our colleagues and more opportunities for our 5,000 British suppliers.’
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