German discounter Aldi will invest £1.4bn over two years to support its expansion plans, as customers seeking out cheaper groceries continues to be a boon for the business.
The value supermarket revealed today that its annual sales increased by a whopping £2bn to £15.5bn in the year to December, a record for the store in its 33-year history.
Operating profit also hit £178.7m, up from £60.2m last year, as soaring prices sent customers flocking to Aldi to seek out cheaper goods.
The cost of living favourite, which recently overtook Morrisons as the UK’s fourth largest grocer, said it has plans to open 18 new locations before the end of the year. It recently committed to opening up to 500 more stores across the UK.
The £1.4bn investment will see 6,000 new jobs in total this year, adding to the 6,000 permanent roles created last year.
It will also be used to expand its distribution and store network as well as improving existing stores and technology infrastructure.
Giles Hurley, chief executive for Aldi UK and Ireland, said: “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 — people who come to us for our low prices but stay for the award-winning quality of our exclusive brands.”
According to the latest Kantar figures, Aldi sales are growing at 17.1 per cent — the fastest of any supermarket.
Its competitive pricing point has led many other grocers to lower their prices on household items, to match Aldi and retain their customer base.
Hurley added: “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.”