Discount supermarket Aldi has announced plans to invest £900 million next year to expand its store network and improve its warehouse operations across the UK and Ireland. The German-owned retailer, which currently operates 1,092 stores, aims to open around 40 new locations in 2027, including sites in Dumbarton, Newport, and Willesden in London.

Aldi reported a 5% increase in sales over the past year, reaching a record turnover of £19 billion. However, its operating profits declined slightly by about 1% to £432.9 million, with pre-tax profits falling 3.8% to £400.5 million. The profit dip was attributed to price investments and rising wage costs amid inflationary pressures.

Giles Hurley, chief executive of Aldi UK and Ireland, said the company had “increasing confidence” in its growth prospects, emphasizing that Aldi is now the third-largest UK supermarket in terms of items sold and customer numbers. While Asda remains slightly ahead in market share by value—with 10.6% compared to Aldi’s slightly lower figures—Hurley indicated Aldi’s customer base is expanding, having attracted more than 425,000 new shoppers recently.

Plans for expansion include opening about 30 new stores in the coming 10 weeks, with a similar number expected next year. Aldi aims to eventually increase its total outlets in the UK and Ireland to 1,500. Hurley noted that the pace of growth is moderated by challenges in securing suitable sites and navigating the planning process.

In response to ongoing inflation and supply concerns, Aldi has focused on maintaining low prices. Hurley stated Aldi remains the only major grocery chain actively reducing prices and cautioned customers regarding the value of loyalty discount schemes offered by competitors, labeling them as “a roll of the dice.” Aldi also recently partnered with Deliveroo to expand home delivery services, allowing customers to order groceries through the app and have them picked and delivered by courier workers.

Addressing broader industry concerns, Hurley highlighted the impact of recent extreme weather events, such as drought and heat, on UK crop yields. He argued that while the UK food supply has not faced systemic shortages, climate-related challenges pose increasing risks for producers. He urged the government to prioritize food security as a national strategic issue, warning against overreliance on imports.

Aldi has committed to sourcing at least half of its products through long-term agreements with suppliers by next year, aiming to bolster stability and encourage investment within Britain’s food industry. The retailer reported spending approximately £14 billion with British suppliers in 2025, with around 80% of its sales generated from domestically sourced goods.