The UK arm of German discount supermarket Aldi said it would increase its investment in the period to end-2024 to £1.4 billion (€1.6 billion) as it reported a rise in profit in 2022.
Aldi UK, Britain's fourth largest supermarket with a 10.1% market share and along with rival Lidl GB its fastest growing, said it would continue to expand its store and distribution networks, revamp existing stores and invest in technology.
The expansion will create 6,000 new jobs in total this year, adding to the 6,000 permanent roles created last year, Aldi noted.
Earlier, this month Aldi UK opened its 1,000th store and raised its target to 1,500 openings, including the launch of 18 new locations before the end of this year.
Aldi UK said 2022 sales rose almost £2 billion (€2.3 billion) to £15.5 billion (€17.8 billion), as its appeal grew during a cost-of-living crisis.
Operating profit increased to £178.7 million (€205.4 million), versus £60.2 million (€69.2 million) in 2021, representing a margin of 1.2%.
The 2021 outcome was dented by major investment in COVID-related measures.
Giles Hurley, chief executive officer of 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."
In 1990, Aldi opened its first store in the UK. Last year, it overtook Morrisons to become Britain’s fourth biggest supermarket, while the latest data from Kantar shows that two thirds of British households now shop with the discounter.
News by Reuters, additional reporting by ESM.