Supermarket chain Aldi UK is set to commit £900m ($1.19bn) in 2027 to open 40 stores and expand its distribution network.
The announcement was made alongside its annual results for the 12 months to 31 December 2025, which showed turnover rising 5% to £19bn.
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Aldi linked the growth to more shoppers purchasing more products across a larger number of stores.
Operating profit was largely flat at £432.9m, compared with £435.5m in 2024. Operating margin slipped to 2.3% from 2.4%.
Aldi said it had continued to fund pricing, infrastructure and staff pay over the period.
The retailer currently runs 1,092 stores and is set to open 30 additional branches over the next ten weeks, including locations in Dumbarton, Newport, and Willesden, London.
It is working towards a target of 1,500 UK stores, prioritising communities with limited local choice or competition in affordable groceries.
On pricing, the retailer has put £340m into cutting prices on more than 1,000 products so far this year, including orange juice, butter, fresh meat and frozen fish.
It has promised further reductions before Christmas.
Aldi also intends to buy at least 50% of its products under long-term supplier agreements by 2027.
It said multi-year contracts give producers and manufacturers greater confidence to invest in capacity, which lessens reliance on imports.
The company spent £14bn with British suppliers in 2025, and they account for roughly 80% of sales.
According to the company, store assistant pay was raised twice this year.
The minimum hourly rate is now £13.50 nationally and £14.88 within the M25.
Aldi UK and Ireland CEO Giles Hurley said: “We are working hard to make good food more affordable for every family—cutting prices on everyday essentials, signing long-term supplier agreements to help increase home-grown production, and continuing to bring affordable groceries to even more communities through our store opening programme.”
In January, the retailer announced plans to spend more than £370m this year on expanding its UK supermarket network.
