Aldi outlines further growth as sales top £10bn

Discount supermarket chain Aldi said UK and Ireland sales climbed above £10bn last year as it revealed plans to grow to 1,200 stores.

The German-owned retailer – which, together with rival Lidl is posing a major challenge to Britain’s big four supermarkets – also reported its first rise in annual operating profit for four years.

Sales for 2017 climbed by 16.4% to £10.2bn while operating profit rose 26% to £265.9m.

Aldi currently operates 775 stores and plans to open 130 more between 2019 and 2020, creating 5,000 jobs.

That expansion was announced as part of its existing target of reaching 1,000 stores by 2022.

A new goal announced later on Monday will see that rise to 1,200 by 2025.

Aldi is now Britain’s fifth biggest supermarket by market share.

Together with Lidl, the discounters now account for more than one in eight of all grocery spending.

Aldi said the number of items bought per trip was rising, and that it had focused on improving quality in many of its ranges such as steak and claret pie, Mediterranean falafel and premium pork sausages.

UK and Ireland chief executive Giles Hurlery said: “The revolution in British grocery shows no signs of slowing.

“Our future investment plans underline our continued commitment to growing responsibly in the UK.”

Aldi also outlined plans to boost its range of British suppliers, who already account for its core range of meat, eggs, milk butter and fresh meat.

The retailer said it currently spends more than £100m a week with more than 1,000 British suppliers

Aldi’s results come after supermarket’s biggest player Tesco last month unveiled new cut-price store format Jack’s, seen as a bid to fight off the threat from the discounters.

Tesco plans to open up to 15 Jack’s branches over the coming year.

(c) Sky News 2018: Aldi outlines further growth as sales top £10bn