Aldi Struggling To Hit Store Target In The UK

 Namnews, 27th September 2022

After the release of Aldi UK’s 2021 financial results yesterday, the discounter’s Chief Executive admitted it was struggling to hit its ambitious store opening targets.

Aldi, which currently operates 970 stores in the UK, aims to have 1,200 outlets by 2025. It had hoped to reach 1,000 sites by the end of this year, but with only 16 more openings planned for 2022, it will fall short of this landmark.

Speaking to trade magazine The Grocer, Giles Hurley, Chief Executive for Aldi UK and Ireland, blamed the lack of suitable sites and supply chain disruption in the construction industry.

He said: “There are of course lots of things beyond our control when it comes to the store opening programme. Clearly there’s planning, which I have to say has been more challenging than ever during the course of the last two to three years, which I guess is perhaps to be expected because of all the pandemic-related challenges.

“There is of course a little bit around the availability of sites. There are definitely more challenges around construction and materials.”

However, Hurley stressed that Aldi had no intention of slowing its expansion plans with it on track to hit 1,000 stores at some point next year.

The Grocer report highlighted that property experts have previously forecast that Aldi will be 12 to 24 months late in hitting its longer-term target of 1,200 stores by 2025 as it competes with Lidl over a diminishing pool of suitable sites.

Hurley stated yesterday that Aldi was continuing to work towards the 2025 target and was sticking with its programme of 50 new openings and relocations next year.

However, the report noted that to reach 1,200 by the start of 2025, Aldi would now need to open more than 100 stores a year.

Aldi saw its profits slump significantly last year due to rising costs and investment in pricing. However, the discounter said that it was willing to sacrifice margin to maintain its focus on “providing the lowest grocery prices in the UK” amid the worsening cost-of-living crisis.