Aldi to invest US$1.2 billion in Britain in 2027

[LONDON] The British arm of German discounter Aldi said on Monday (Sep 28) it will invest £900 million (US$1.2 billion) next year including in 40 new stores and in its distribution network as it seeks to boost its share of the country’s fiercely competitive grocery market.

Aldi UK, Britain’s fourth largest grocer after industry leader Tesco, Sainsbury’s and Asda, currently trades from 1,092 stores and plans to open 30 over the next 10 weeks. Its long-term target is 1,500.

The group, owned by Germany’s Aldi Sud, and rival discounter Lidl have expanded rapidly over the past two decades, transforming Britain’s supermarket scene and forcing the traditional players to raise their game.

Aldi UK said it made flat operating profit of £432.9 million in 2025, representing an operating margin of 2.3 per cent, reflecting investment in prices, infrastructure and workers’ pay. Sales, including Ireland, increased 5 per cent to £19 billion.

However, analysts reckon Aldi underperformed the wider UK grocery market at an underlying level in 2025 and has continued to do so in 2026.

Monthly industry data showed Aldi UK’s sales rose 0.7 per cent over the 12 weeks to September 6, giving it a UK market share of 10.6 per cent, down 0.2 percentage points on the year. Lidl GB’s sales rose 8 per cent over the same period.

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Aldi UK said it has spent £340 million in reducing prices so far this year.

CEO Giles Hurley said the cost of food remained one of the biggest pressures on UK households.

“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,” he said. REUTERS