Aldi plans to invest billions in British branch network

London. Aldi wants to invest around one billion euros in its business in Great Britain next year. The British branch of Aldi Süd announced on Monday that the money would flow into 40 new branches and the sales network, among other things. The German discounter wants to expand its share of the highly competitive British food market.

In the next ten weeks alone, 30 more stores will be added to the existing 1,092. In the long term, Aldi is targeting 1,500 locations. Both Aldi and its German competitor Lidl have grown massively in Great Britain over the past two decades, putting the British chains under pressure.

In 2025, Aldi UK's operating profit stagnated at £432.9 million, a margin of 2.3 percent. Sales, including Ireland, rose by five percent to 19 billion pounds. The company attributed the sluggish profit development to investments in prices, infrastructure and wages.

Aldi is the fourth largest grocer in the UK after Tesco, Sainsbury's and Asda. However, according to analysts, the company has recently performed weaker than the overall market. In the twelve weeks to September 6th, sales rose 0.7 percent. The market share fell by 0.2 percentage points to 10.6 percent, while Lidl recorded an eight percent increase in sales in the same period.

Aldi UK says it has invested £340 million in price cuts so far this year. Food costs continue to be one of the biggest burdens on British households, said Aldi UK boss Giles Hurley. “Recent domestic droughts and events overseas have demonstrated how fragile our food system is and why food security must be a long-term national priority,” he said.