German supermarket chain Aldi is planning to open 70 new stores across the UK next year despite declining profits.
The new stores are part of the company’s plan to have 1,000 UK-based locations by 2022.
Aldi is progressing with its expansion programme emboldened by increasing sales and market share in the country.
The retailer registered sales of £8.74bn last year, which marks an increase of 13.5% from £7.7bn in 2015.
However, it witnessed a 7% downswing in gross profits from £349.7m in 2015 to £324.5m last year, with operating profits declining 17% from £255.6m to £211.3m.
Aldi UK and Ireland CEO Matthew Barnes said: “Our growth is accelerating, thanks to the hundreds of thousands of new customers switching their shop to Aldi. This is happening right across the UK and is all down to a simple, straightforward commitment – products comparable to the leading brands and supermarket premium ranges at the lowest prices in Britain.”
“The fact that more and more customers walk through our doors every day of the week gives us the confidence to carry on investing in people; jobs; stores and our distribution network and continues to fuel our growth right across the UK.”
The company also intends to open an additional 150 stores next year under its ‘Project Fresh’ initiative, which comprises a £300m investment programme aimed at creating more in-store space for fresh, chilled and food-to-go ranges.
It is expected that the company will come up with a total of 250 stores by the end of next year.
Last year, the retailer infused more than £450m of capital expenditure into new store openings, as well as improving its distribution centres in the UK and Ireland.
Over the past five years, the company’s total investment stands at £2bn, with plans to imbue £459m during this year.