Aldi plans for new Oxford and Banbury stores in UK expansion

The German supermarket is set to invest £1.4bn in the next two years as part of a nationwide expansion plan, which includes the potential new Oxfordshire stores.

Aldi said on Monday that it plans to open a further 18 stores by the end of the year and has laid out plans to open up to 500 more shops across the UK over the longer term.

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In its annual trading update, Aldi said it had attracted around one million extra customers in the past 12 months.

Aldi opened its 1,000th store earlier this month with a long-term target of operating 1,500 stores in the UK.

The supermarket said it is searching for freehold town-centre, edge-of-centre, and retail park sites near a main road with the site able to accommodate a 20,000 sq foot store with around 100 parking spaces.

The supermarket will also be investing in the development of new and expanded distribution centres, including its new distribution centre in Leicestershire. 

Richard Thornton, communications director at Aldi UK, said: “We want to make our great value groceries accessible to all, and to do that we need more stores, particularly in towns and areas that don’t have an Aldi already.  

“The areas we’ve identified in our latest list are places where there is demand for stores and we are committed to continue investing until we can bring our quality products and unbeatable prices to as many people as possible.” 

Earlier this year, Aldi overtook Morrisons as the UK’s fourth-largest supermarket chain following its strong period of growth.

Giles Hurley, chief executive officer of Aldi UK, recently said the cost-of-living crisis has changed shopping habits as the supermarket chain was boosted by shoppers seeking to reduce their grocery bills.

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He said that “households are still under real pressure from higher living costs” as it reported its finances for last year.

Shoppers are making fewer trips to the supermarket, buying more own-branded items and are switching which supermarket chain they use more regularly, he added.

The German supermarket firm’s UK and Ireland business has reported annual sales of £15.5 billion for 2022, jumping from £13.6 billion in the previous year.

It also reported an operating profit of £178.7 million for the year, jumping from £60.2 million in 2021 on the back of increased sales.

It added that more recent sales data, compiled by Kantar earlier this month, showed the business saw 17.1 per cent growth year-on-year as shoppers seek to reduce the cost of their weekly shop.

Mr Hurley said: “said: “Although inflation is easing, households are still under real pressure from higher living costs.

“As a result, Britain is shopping very differently to how it did 18 months ago – fewer trips, more own label products, and switching supermarkets in search of better value.

“What we’re seeing is a new generation of savvy shoppers who’ve turned their back on traditional, full-price supermarkets in favour of transparent, low prices, which is what we’re famous for.

“That’s why we’re still welcoming more and more customers through our doors – people who come to us for our low prices but stay for the award-winning quality of our exclusive brands.”