Aldi to invest £800m to accelerate UK expansion as sales and profits soar
Source:Mintel09-09-2024
UK 09-09-2024
In the 12 months to December 2023, Aldi’s sales rose by 16% to £17.9 billion, while its pre-tax profit grew to £536.7 million. Aldi will invest £800 million into expansion across the UK, as the discounter plans to open 23 new locations before the end of the year, including Muswell Hill, London, and Caterham, Surrey. Aldi will also refurbish 100 existing stores this year, in addition to expanding its network of distribution centres and updating its technology infrastructure to support its growth. Aldi currently boasts over 1,000 stores and has previously launched plans to reach 1,500 across the UK. The discounter will also spend £1.4 billion over the next two years, focusing on lowering prices and opening stores to bring “high-quality, affordable groceries to millions more British families.”
Aldi’s UK and Ireland CEO, Giles Hurley, 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.”
Mintel comment:
“Aldi continues to cement itself within the British grocery sector as the discounter invests heavily in its store estate, with approximately 81% of discount shoppers typically shopping with Aldi (Mintel’s Food and Non-Food Discounters – UK, 2023 Report). Aldi’s investment in its store estate can further boost footfall in its stores, as Aldi holds strong appeal to many across the financial spectrum, with 15% of those in healthy financial situations shopping with the discounter (Mintel’sSupermarket - UK, 2023Report).
As seen in previous periods of financial uncertainty, many turn to discounters to save, and now in 2024, we see improvements in consumer confidence, especially among high earners. This leads to discounters like Aldi needing to work hard to retain these shoppers who have actively traded down when it comes to their grocery shop.
Aldi remains the leading discounter, currently boasting over 1,000 stores across the UK, with intentions to boost its store estate to 1,500 stores. Aldi’s £800m investment in its store estate can only further encourage shoppers to visit, as the discounter will be more accessible across the UK. This is key for discount shoppers to encourage repeat visits while also highlighting other positive attributes of shopping with discounters.”
