Aldi To Make $1.8B Investment In The UK

German supermarket chain Aldi plans to make a $1.8 billion investment in the U.K. over the course of the next two years, opening a new store every week as it looks to increase its market share.

The company has plans to open an additional 100 new stores in the country, a new distribution center and make investments in technology. The new store openings will create 2,000 new jobs in the country.

“Around 88 percent of British consumers want to shop in stores … There’s no doubt that bricks and mortar is the focus for our business,” said Giles Hurley, CEO of Aldi’s business in Britain and Ireland.

Aldi currently operates 920 stores in the U.K. and has an 8 percent market share, which makes it the fifth-largest supermarket chain in the country. The company’s latest investment is part of its long-term effort to grow its business in the country. Its moves are resulting in increased competition in the U.K. grocery industry, forcing the big four established players — Tesco, Sainsbury’s, Asda and Morrisons — to reduce prices, Reuters reported.

That being said, the company’s growth plans have not been immune to the effects of the ongoing pandemic and its lack of online presence.

Aldi’s 2020 sales in Britain and Ireland rose 10.2 percent, reaching $18.2 billion. However, its operating profit declined by 1.2 percent to $389.4 million.

The company has looked to overcome these challenges by offering delivery service through Deliveroo and a click-and-collect service across 200 store locations. Aldi is also reportedly piloting an Amazon-style checkout-free store in Greenwich, southeast London.

Originally published at https://retailbum.com on September 28, 2021.