Aldi is doubling down on its presence in the UK. The discount supermarket chain announced it will invest £1.6 billion ($2.2 billion) over the next two years to speed up store openings—even

though its annual profits have taken a hit.

The grocer reported operating profits of £435.5 million (\$590.6 million) in 2024, down 21% from the year before. Aldi pointed to its decision to cut prices, improve infrastructure, and raise staff pay as key reasons behind the dip. Despite slimmer profits, sales climbed to £18.1 billion.

Aldi, owned by Germany’s Aldi Süd, has been one of the driving forces reshaping Britain’s supermarket industry. Alongside Lidl, it has shaken up the market, pushing traditional giants like Tesco, Sainsbury’s, and Asda to rethink their strategies. Aldi currently sits in fourth place but is closing in fast on Asda.

Right now, Aldi operates 1,060 stores in the UK. Over the next 13 weeks, it plans to open 21 more, and another 80 within two years. Its long-term ambition? To hit 1,500 stores nationwide.

Recent industry data shows the plan is working. Aldi’s UK sales rose 4.8% in the 12 weeks to August 10, giving it a 10.8% share of the grocery market—just a single percentage point behind Asda.

“Shoppers are still finding things difficult,” said Giles Hurley, CEO of Aldi UK and Ireland.

The investment comes at a time of uncertainty for retailers, with concerns about consumer spending and possible tax hikes ahead of the government’s November budget. Rising unemployment is also weighing on confidence, according to other retail leaders like the boss of Primark’s parent company.

Despite the challenges, Aldi says it remains committed to local suppliers, having spent £14 billion with them in 2024. Photo by P L Chadwick, Wikimedia commons.