Aldi, Britain’s lowest-priced and favourite supermarket, has pledged to invest €1.5bn (£1.3bn) over the next two years (2022-2023) in a bid to further accelerate its share of the UK grocery market. The plans are expected to create more than 2,000 new jobs next year, adding to the 7,000 permanent roles already created over the past two years. In its annual trading update, Aldi said sales in the UK and Ireland had grown 10.2% to a record €15.6bn (£13.5bn) in the year to 31st December 2020. Latest data shows Aldi is attracting more new shoppers through its doors than any other supermarket with a UK market share of 8.1%.
Aldi, which has returned its business rate relief in full to HM Treasury, said profits had been dampened by its continued investment in price and the cost of responding to the pandemic, citing that it had “put people before profits” and focused on feeding the nation. As part of its forward investment plans, Aldi said it would continue to grow its retail estate with 100 new stores across the UK over the next two years, as well as expanding its logistics infrastructure, including a new 1.3 million ft² site in Leicestershire. Further investment is being made into Aldi’s popular click and collect service and technology initiatives to support further growth.
This includes trialling a new Aldi checkout-free concept store in Greenwich, London, which will use a system of cameras, sensors and artificial intelligence to identify the items customers take from shelves, alleviating the need to go through checkout.
Giles Hurley, Chief Executive Officer for Aldi UK and Ireland, said: “Whilst 2020 was an extremely challenging year, our 41,000 colleagues stepped up when it mattered most – their dedication to the communities they serve has been nothing short of remarkable. Despite some of the most difficult conditions our sector has ever seen, our people underlined the strength, success and spirit of our business. As well as delivering record sales, we continued to invest for growth, deploying over €695m (£600m) in stores and distribution centres across the UK. This helped to create thousands of much-needed jobs and support for British farmers and manufacturers. Whilst the cost of responding to the pandemic dampened profits, our decision to return business rate relief was the right thing to do. We’re continuing to gain even more customers – with over 60% of households shopping with Aldi in the last year. By redefining the discount supermarket in the UK, creating more places and more ways to shop with us, we are excited to provide millions of new customers with access to Aldi’s award-winning quality and unbeatable value.”
Earlier this year, Aldi maintained its position as the UK’s best-paying supermarket by increasing the minimum hourly rates for store colleagues, exceeding the Living Wage Foundation’s recommended ‘real living wage’. The group has also pledged to halve the volume of plastic packaging it uses by 2025 by removing over two billion pieces of plastic from circulation. In April, it launched a trial at its Ulverston store in Cumbria selling its first packaging-free products to help customers shop more sustainably.
