Aldi has reported sales growth of 18.7%, which is its highest percentage increase during its 32 years of UK trading.
In its annual trading update, Aldi said that whilst sales growth in the UK and Ireland had slowed in 2021, trading had “accelerated quickly” in the past six months as pandemic restrictions were lifted and rising living costs “affected shopping habits.”
The retailer said its profits had fallen due to its investment in lowering prices, increasing colleague pay and pandemic-related expenses. Aldi explained that it had spent an extra £2 billion with UK companies last year, sourcing food for their stores, taking its total to £11 billion.
Consumer group Which? recently confirmed Aldi as the UK’s cheapest grocer based on a basket of 47 everyday items with a price difference of £13.53 against other UK retailers.
Aldi UK and Ireland chief executive officer Giles Hurley said the retailer will “do whatever it takes to maintain their discount.”
The retailer also became Britain’s third most popular supermarket as the number of households shopping at Aldi rose to 65%, according to Kantar’s latest figures.
Aldi operates over 970 stores and has confirmed that it plans to open 16 more over the next 12-weeks.
As part of its ongoing £1.3 billion two-year pledge, investments will include expanding or relocating “dozens” of existing stores and developing its network of distribution centres and technology infrastructure.
Hurley said that the new stores opening includes the areas of Broadstairs, Luton, Lincoln, and New Southgate in London, and the brands expansion is set to create over 6,000 new jobs this year.