Aldi has announced it will invest a record £800 million to accelerate its expansion in the UK following its “highest ever” sales increase of 16 per cent.

For the 12 months to December 2023, sales at the discount supermarket chain increased to £17.9 billion compared to £15.5 billion the previous year.

Aldi attributed higher sales to shoppers prioritising value despite falling inflation.

The retailer recorded pre-tax profits of £536.7 million over the same period, compared with £152.6 million in 2022, which Aldi attributed to greater efficiencies across its stores and central functions.

Aldi said it plans to open 23 new locations before the end of the year and refurbish 100 existing stores. It also intends to expand its network of distribution centres and upgrade technology infrastructure to support its growth.

The supermarket said its plans represent a £800 million annual investment programme and a £1.4 billion two-year plan.

Aldi currently has around 1000 stores in the UK, with long term plans to increase the number to 1,500. In February this year, the company announced plans to invest £550 million in its distribution network to support the store openings.

“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,” said Giles Hurley, chief executive for Aldi UK and Ireland. “We’re also investing at record levels to cut prices, reward our amazing colleagues and support more causes in our local communities - all while creating thousands more jobs and even more opportunities for our growing base of British suppliers and farmers.”

In January, Aldi said it spent an extra £1.3 billion with its 5,000 British suppliers in 2023, adding that it would increase the amount of investment as it establishes more long-term supply partnerships.

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