Aldi announced plans for a 50% increase in the number of stores as it unveiled its 1,000th store.
The German discount retailer said it now eventually wants 1,500 stores across Britain, compared to its previous target of 1,200.
Achieving its 1,500-store target would mean more outlets than Sainsbury’s, which is currently the UK’s second-largest grocery chain by market share, has 600 supermarkets and around 800 convenience stores.
Aldi is currently the fourth largest grocer in the UK, with a 10.2% market share, behind Asda which holds 13.7% of the market.
Tesco remains the market leader with close to a 30% share.
Giles Hurley, the chief executive of Aldi UK and Ireland, said: “Our popularity is growing, and there is huge demand for people to have an Aldi store near to them to increase shoppers’ access to our unbeatable prices.
“The next phase of our expansion will involve another 500 new stores over the coming years.
“It is a long-term target and is not a ceiling to our ambition to have an Aldi store close to everyone in the UK.”
The Germany-headquartered chain, which first launched in the UK in 1990, has been rapidly growing its market share across the country.
It has been named the UK’s cheapest supermarket, according to consumer champion Which?