Aldi will invest £1.4bn over the next two years to support its expansion spree across the UK.
It comes as the German discounter reported its operating profit had skyrocketed 196% to £178.7m in the 12 months to December 2022, up from £60.2m the year before.
Sales over the period hit a 33-year high, surging 14% to £15.5bn, thanks to “a new generation of savvy shoppers turning their back on traditional, full price supermarkets”.
The grocer, which operates more than 1,000 UK stores, said it plans to open 18 new locations before the end of the year and create 6,000 new jobs.
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To support its expansion, the supermarket said it was increasing its rate of investment to more than £1.4bn over the next two years to expand its store and distribution network, as well as improving existing stores and technology infrastructure to support growth.
Aldi UK and Ireland chief executive Giles Hurley said: “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.
“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.”
Aldi’s positive uptick in profits comes as rival discounter Lidl reported that it had swung to a £75.9m loss in the last year despite sales soaring.
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