Aldi unveils 23 new store locations as part of record £1.6bn UK expansion

Aldi has named 23 potential new UK locations as part of a record £1.6 billion investment programme that will see the German-owned supermarket open about 80 stores across 2026 and 2027.

The company said the expansion forms part of a wider plan to grow its estate from more than 1,050 stores toward a long-term target of 1,500, with the newly identified sites spread across London, the West Midlands, Manchester, Yorkshire, South Wales, East Sussex and the Isle of Wight.

Giles Hurley, chief executive of Aldi UK and Ireland, said the retailer was focused on offering "great quality products at unbeatable prices" as shoppers continued to face pressure from wider cost rises. "Nobody else is making the same commitment to everyday low prices – no clubs, no gimmicks, no tricks - just prices our customers can trust, and quality they can depend on," he said.

Aldi reported UK and Ireland sales of £18.1 billion in the most recent year, up from £17.9 billion a year earlier, but profits fell to £435.5 million from £552.9 million as the business invested in lower prices, infrastructure and higher staff wages amid a fierce price war with rivals including Lidl, Tesco and Sainsbury's. Market-share figures from Worldpanel published last month put Aldi's share at 10.8%.

Hurley urged policymakers to avoid measures that would raise supermarkets' operating costs ahead of the government's Budget, which has been signalled for 26 November. He pointed to recent increases — including higher employer National Insurance contributions and a packaging levy — as factors that have already "rippled through to prices on the shelf edge." He said that any further cost increases affecting the sector "should be considered very, very carefully."

Retail trade bodies have also warned of mounting price pressure across food markets. The Food and Drink Federation has cautioned that food inflation could rise to 5.7% by the end of December, while the British Retail Consortium recorded food inflation of 4.2% in August.

Aldi said it would channel the £1.6 billion investment into new stores and existing infrastructure as it seeks to reach more communities that currently do not have an Aldi nearby. The expansion comes as shopping habits shift and consumers increasingly trade down or switch retailers to find lower prices; Hurley said the change had helped make Aldi "more popular than ever."

The company has in recent years pursued an aggressive growth strategy in the UK, combining price investment with store openings and higher pay for staff. Analysts and retailers have pointed to the interaction of rising input and operating costs, business rates reform and levies as factors that could add to retailers' margins and consumer prices, a concern echoed by supermarket executives.

Aldi's latest expansion signals confidence in continued demand for discounters even as margins are squeezed. The retailer said its growth plans would create new local jobs and increase choice for shoppers in the named regions, while it maintains a focus on everyday low prices rather than loyalty clubs or promotions.

The supermarket sector will watch how the forthcoming Budget and ongoing business-rates reforms affect operating costs and pricing strategies. For Aldi, the priority remains extending its footprint across more towns and cities while navigating a highly competitive market and cost pressures that have weighed on profitability despite rising sales.