Story
Aldi UK Pledges Record £900 Million Investment for 2027 Despite Slowing Sales
Summary
The discount supermarket chain will invest a record £900 million in its UK store and distribution network in 2027, even as recent data shows its sales growth has moderated.
Aldi announced on Monday it will commit a record £900 million to its UK operations in 2027, a significant capital expenditure aimed at opening new stores and expanding its distribution network despite facing slowing sales growth and flat profits.
Investment and Expansion Plans
The German-owned discount grocer detailed that the investment will fund the opening of 40 new stores and support ongoing upgrades to its distribution infrastructure. The company confirmed it currently operates 1,092 stores and holds a long-term ambition to reach a total of 1,500 stores across the UK.
In the more immediate term, Aldi plans to open 30 new locations over the next 10 weeks. The company stated its expansion strategy focuses on reaching communities with limited access to affordable grocery options, framing the move as a way to address food affordability.
Financial Performance and Context
The aggressive investment plan comes amid a mixed financial picture. For the year ending Dec. 31, 2025, Aldi's UK turnover rose 5% to £19 billion. However, operating profit remained largely unchanged at £432.9 million as the retailer absorbed costs from price cuts, infrastructure spending, and increased staff wages.
AdMore recent figures indicate a significant slowdown in momentum. According to data from Worldpanel, Aldi's sales growth weakened to just 0.7% in the 12 weeks leading up to September 6. The company did not disclose its like-for-like sales figures for the 2025 financial year.
Strategic Rationale
Aldi's UK CEO, Giles Hurley, positioned the investment as a direct response to rising household costs. "The cost of food remains one of the biggest pressures on households across the country," Hurley said, emphasizing the need for long-term food security.
The retailer has already invested £340 million this year in reducing prices on over 1,000 products and plans further cuts ahead of the Christmas period. Hurley said the company is focused on making food affordable by cutting prices, signing long-term deals with suppliers to support domestic production, and expanding its store footprint.
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