Aldi to open new ‘local’ branches as it plans to double London stores
The retailer said it will increase its store count within the M25 from 45 to 100 by the end of 2025.
It will open both standard-sized stores and new, smaller-format ‘local’ stores on London high streets.
Aldi said trials of its ‘local’ format, which are half the size of a typical store and stock around 1,500 products, had “exceeded expectations” since they began in March.
The UK’s fifth biggest supermarket posted an 11 per cent increase in sales to £11.3bn in the year to 31 December 2018. However, its pre-tax profit fell by 26 per cent to £197.9m as a result of price cuts and investment in infrastructure.
Chief executive, Giles Hurley, said: “Whilst our expansion will continue to reach every part of the UK, we’re increasing our focus on London, where our market share is just 3.4 per cent, compared to 8.1 per cent nationally.
“London shoppers regularly tell us they would switch to Aldi if there was one nearby, so there is clearly a significant growth opportunity for us in the capital.”
New stores in Sydenham, Blackheath and Watford have already been confirmed.
The supermarket said it invested £531m last year, with a further £1bn planned over 2019 and 2020 in new stores, store upgrades and distribution centres.
It said its UK-wide expansion would create more than 5,000 new jobs over the next two years.