Aldi unveils 23 target locations in record £1.6bn UK expansion, warns against cost hikes ahead of Budget

Aldi has published the locations of 23 potential new stores as part of a record £1.6 billion expansion plan that will see the German-owned supermarket open 80 sites across 2026 and 2027.

The retailer, the UK’s fourth-largest supermarket, said it currently operates more than 1,050 stores in the UK and Ireland and has a long-term target of reaching 1,500. The announcement comes as Aldi reported sales of £18.1 billion last year and warned the government against policies that would raise operating costs for retailers ahead of the November Budget.

Giles Hurley, chief executive of Aldi UK, said the chain would remain "laser-focused on doing what Aldi does best — offering customers great quality products at unbeatable prices," adding that the business saw more shoppers switch to Aldi as households sought lower-cost groceries. "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 said the 23 locations being targeted include sites across London, the West Midlands, Greater Manchester, Yorkshire, South Wales, East Sussex and the Isle of Wight. The list of towns and neighbourhoods named by the retailer includes Amersham, Northallerton, Hastings, Watford, Orpington, Newport (South Wales), Ashford, Bishopbriggs, Edgware Road (London), Telford, Balsall Common, Willesden, Driffield, Hattersley, Egremont, Dudley, Dumbarton, Hanworth, Exmouth, Yate, Malton, Newport (Isle of Wight) and Kentish Town.

The expansion forms part of a wider investment in prices, store infrastructure and staff. Aldi reported profits of £435.5 million in the most recent year, down from £552.9 million the prior year, after the company invested in lower prices and increased wages. Data firm Worldpanel recently put Aldi’s UK market share at 10.8 percent.

Hurley used the announcement to caution policymakers about measures that would add to retailers’ costs. He specifically referenced recent increases in employer national insurance contributions and a new packaging levy, saying those measures had already "rippled through to prices on the shelf edge." He urged that any further changes that affect the operating costs of businesses "should be considered very, very carefully."

Industry groups have also flagged concerns about rising costs and their effects on food prices and store viability. The Food and Drink Federation warned that UK food inflation could reach 5.7 percent by the end of December, up from 4.2 percent in August as reported by the British Retail Consortium. Retailers have urged the government to rule out further increases in the cost of doing business and to review planned business rates reforms, which the sector says could push some large stores into higher bills and risk job losses or closures.

Aldi framed its expansion as meeting unmet demand: the company said it has brought affordable groceries to almost 800 towns and cities since opening its first UK outlet more than 35 years ago, but that "hundreds more communities" still lack an Aldi store. The planned openings in 2026 and 2027 are the latest step in a multi-year growth drive that has positioned discounters as a growing force in the UK grocery market.

The UK Budget is scheduled for Nov. 26. Aldi’s comments add to calls from retailers for careful consideration of fiscal measures that could raise their operating costs amid persistent consumer pressure from higher household bills and food price sensitivities.