The British arm of German discounter Aldi plans to almost double its 60-strong store estate in London, it has announced.
Last year Aldi UK, owned by Germany’s Aldi Süd, overtook Morrisons to become Britain's fourth largest grocer. It currently trades from about 990 stores and has a UK grocery market share of 9.2%, according to researcher Kantar.
However, it is relatively under represented in the capital, which partly reflects a shortage of suitable sites.
To help identify sites, Aldi UK is offering property agents a finder’s fee of either 1.5% of a freehold price or 10% of the first year’s rent for leasehold sites, for recommending a previously unknown site.
Read More: Aldi UK To Recruit 6,000 After Strong Christmas Trading
Store Expansion Target
Aldi UK's overall store target is 1,200 by 2025. It invested £700 million (€788.1 million) in 2022 and plans to invest £600 million (€675.5 million) in 2023.
Last week Aldi UK said it would create over 6,000 jobs this year, continuing its expansion plans after a robust performance over the key holiday season.
Aldi and Lidl, another German discount retailer, reported double-digit sales growth for the Christmas period on strong demand for their low-price products during a cost-of-living crisis.
Wage Hike For Warehouse Workers
In January of this year, the discounter said it would increase pay rates for around 7,000 warehouse workers from February, a third rise since January 2022.
From 1 February warehouse workers will receive a minimum rate of £13.18 (€14.8) an hour, up from £11.48 last January.
Many UK employers are offering higher pay deals in the face of a still tight labour market and the escalating cost of living.
News by Reuters, edited by by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.