Aldi is committing a record £900 million to expanding its UK store network and distribution infrastructure next year, betting on continued demand for low-cost groceries despite a squeeze on annual operating profits.
The German-owned discount supermarket reported operating profits of £432.9 million for 2025, down 1 per cent from £435.5 million the previous year, as investment in lower prices and a rising wage bill absorbed much of the benefit from a 5 per cent increase in sales.
Turnover nevertheless reached a record £19 billion, highlighting the continued momentum of the discounter as households seek to control grocery spending.
Aldi, the UK’s fourth-largest grocery chain, said it would open 40 new stores in 2027 as part of its largest-ever annual investment programme. The group already operates 1,092 shops across the UK and Ireland.
It is also accelerating its immediate expansion, with 30 stores due to open over the next 10 weeks in locations including Dumbarton, Newport and Willesden in London.
The investment will extend beyond the shop floor, with Aldi allocating funds to its warehouse and distribution network as it builds the infrastructure required to support a substantially larger estate.
The retailer has previously set out an ambition to reach 1,500 stores across the UK, targeting what it describes as communities “cut off from affordable groceries due to lack of local choice or competition”.
The expansion comes as Britain’s supermarket sector remains locked in an intense price battle, with Aldi and other discount chains forcing established grocers to respond with lower prices, loyalty schemes and larger promotional campaigns.
Aldi said it would continue cutting prices in the run-up to Christmas, following a £340 million price reduction programme this year.
The strategy comes at a cost. Rising wages and the decision to invest heavily in prices have limited the extent to which higher sales have translated into profits, with operating earnings falling despite record turnover.
Giles Hurley, chief executive of Aldi UK and Ireland, said the retailer was responding to both pressure on household budgets and growing risks to Britain’s food supply.
“The cost of food remains one of the biggest pressures on households across the country.
“Recent droughts at home and events overseas have highlighted just how fragile our food system is and why food security must be a long-term national priority.
“We’re working hard to make good food more affordable for every family – cutting prices on everyday essentials, signing long-term supplier agreements to help increase home-grown production, and continuing to bring affordable groceries to even more communities through our store opening programme.”
His comments reflect growing concern among retailers about the vulnerability of food supply chains to extreme weather, geopolitical disruption and volatile global markets.
For Aldi, the response is partly a question of scale. More stores require greater distribution capacity, while deeper investment in supply relationships can help the retailer secure products and maintain its low-price proposition.
The £900 million commitment therefore represents more than a straightforward store-opening programme. It is a bet that Britain’s appetite for discount groceries will remain strong enough to justify continued investment even as the economics of selling food at low prices become increasingly challenging.
With 40 more stores planned for 2027 and an eventual target of 1,500 outlets, Aldi is choosing expansion and scale over maximising near-term margins — intensifying the pressure on rivals across Britain’s fiercely competitive grocery market.
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