Aldi is planning to expand in London as the budget supermarket seeks new customers following a sharp drop in profit.
The company said it will more than double the number of stores inside the M25 from 45 to 100 by the end of 2025 including new smaller “local” high street branches.
UK and Ireland sales were up 11 per cent to £11.3bn in the year ending December 2018.
However, operating profit fell 26 per cent and pre-tax profit was down 18 per cent, which Aldi blamed on slashing product prices and investment in its infrastructure.
Capital expenditure soared 19 per cent from £447.2m to £531.1m.
The number of customers grew five per cent from £15.8m to £16.6m.
Why it’s interesting
The supermarket began trialling its Local format, which are around half the size of a standard store, in March.
Aldi is focusing on London expansion, where market share is 3.4 per cent compared to 8.1 per cent across the rest of the country.
Store openings in the coming months will include Sydenham, Blackheath and Watford.
The German company, which currently operates more than 840 stores, has plans to open more than 100 new branches across the UK over the next two years as it targets 1,200 shops by the end of 2025.
What Aldi said
Aldi UK and Ireland chief executive Giles Hurley said: “Every day, thousands of British shoppers are swapping and saving with Aldi thanks to our carefully-selected range of great quality products and our commitment to the lowest prices in grocery.
“Whilst our expansion will continue to reach every part of the UK, we’re increasing our focus on London, where our market share is just 3.4 per cent compared to 8.1 per cent nationally.
“London shoppers regularly tell us they would switch to Aldi if there was one nearby, so there is clearly a significant growth opportunity for us in the capital.”
Main image credit: Getty