Aldi to open new supermarket each week for the next two years
Aldi has announced plans to invest £1 billion in order to open a new store every week, according the supermarket’s chief executive for the UK and Ireland, Giles Hurley.
Hurley stated, "The reality is that almost 50 per cent of the population of the UK doesn't currently shop with us and they tell us the main reason for that is that they don't have a store near us.”
He continued "Over the next two years, we're going to invest a further billion pounds in the UK and that shows our intent."
Last year, Aldi attracted 800,000 new customers and increased sales by £1.1 billion.
This accounted for 11 per cent growth from the year prior, however, the majority of this growth came from the opening of new stores.
Price cuts resulted in an 18 per cent drop in profits in the same period.
There are now 840 Aldi’s in the UK, and the company hopes to extend its London influence, intending on doubling the number of stores inside the M25 by the mid-2020s.
Editor of Grocer magazine, Adam Leyland, notes that it is “harder to get good sites in London. So you have to have a very flexible model and Aldi is so formulaic as a discounter that this is harder to manage.”
Leyland did state that “they are determined to do it and they are a very capable grocer. We've seen over the years how they've responded to the dynamics of the UK market."
Patrick O’Brien, UK retail director at market research firm GlobalData has stated "The fundamental question for Aldi, Lidl and all the other discounters, like B&M, across the retail sectors is that at some point they will reach their peak physical space."