German discount supermarket Aldi plans to open 130 new stores in Britain after the UK and Ireland division delivered its first increase in annual operating profit for four years.
The company said the expansion would create 5,000 new jobs in the UK and puts it on track to reach its target of 1,000 stores by 2020. Aldi, which currently has about 775 stores in the UK, aims to have 1,200 stores in Britain by the end of 2025.
READ: Aldi's 2017 sales top £10bn for the first time after record Christmas
In the year to 31 December 2017, Aldi’s UK and Ireland arm posted a 26% increase in operating profit to £265.9mln, up from £221.3mln the previous year. Sales grew 16.4% to £10.18bn as customer numbers rose by 1.1 million to 15.8 million.
“While other grocers introduced more complexity into their businesses in their struggle to win back customers, we stuck to our guns and focused on doing what Aldi does best – buying smart, staying lean, improving quality and keeping prices low,” said chief executive Giles Hurley.
Aldi and fellow discounter Lidl have taken market share away from the UK’s so-called ‘Big Four’ supermarkets Tesco PLC (LON:TSCO), J Sainsbury PLC (LON:SBRY), Asda and WM Morrison PLC (LON:MRW).
In an effort to address the tough competition in the sector, Tesco launched a spin-off budget store called Jack’s while Sainsburys and Asda have proposed a merger to help strengthen their buying power with suppliers.