Aldi commits £1.6bn to UK expansion despite decline in operating profit

Core Insights - Aldi plans to invest £1.6bn ($2.17bn) in the UK to open 80 new stores over the next two years, aiming to expand its footprint to 1,500 locations from the current 1,060 [1][5] - The company has identified 20 priority locations for new store openings, including areas in Greater London and other regions [2] - Total sales in the UK and Ireland reached £18.1bn, a slight increase from £17.9bn in 2023, attributed to the opening of new stores [3][4] Financial Performance - Operating profit decreased to £435.5m in 2024 from £552.9m in 2023, resulting in a profit margin of 2.4% [3][4] - The decline in operating profit is linked to continued price reductions for customers, investments in infrastructure, and higher wages for staff [4] Strategic Goals - The investment is part of Aldi's strategy to meet the demand for affordable groceries in underserved communities across the UK [5]