Aldi is making its “biggest ever annual investment in Britain” to open and refurbish a raft of stores by the end of this year, following its highest-ever period of sales growth.
The retailer said it would be making an “unprecedented” £800m investment to accelerate its expansion in the UK following a 16% sales boost.
For the year to December 31, 2023, sales at Aldi in the UK and Ireland grew by £2.4bn, taking its annual revenue from £15.5bn in 2022 to £17.9bn for 2023.
Pre-tax profits jumped from £152.6m to £536.7m as it combined record sales with ”greater efficiencies across its stores and central functions.”
Operating profit increased to £552.9m with a margin of 3.1%.
As a result, the discounter aims to bolster its expansion plans in the UK with a record £800m investment this year.
Aldi has announced plans to open 23 new locations before the year ends and refurbish a further 100, as well as “expanding its network of distribution centres and updating technology infrastructure to support its growth”.
Aldi currently operates more than 1,000 stores in the UK and has ambitions to scale up to more than 1,500.
Giles Hurley, chief executive 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.”
Last month, Aldi’s tight grip on operating efficiencies resulted in the axing of its click-and-collect offer.
The service, which it introduced in selected stores at the height of the pandemic, was wound down on 18 August, according to The Grocer.
Online grocery delivery peaked at about 15% of sales during the pandemic but has retreated in recent years to less than 13%, according to the latest data from Kantar.
During the cost-of-living crisis, discounter rival Lidl expanded rapidly in the UK and Aldi was able to overtake Morrisons as the fourth-largest supermarket during that time.
However, recent market share data shows Aldi is losing its grip. It finished the 12 weeks to August 4 on 10% of the market, down 20 basis points on the year.
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