Aldi’s latest annual results show its expansion strategy delivering renewed momentum. 

However, with Lidl growing faster and retail location data firm Geolytix reporting that its total retail footprint has almost caught up with Aldi’s, further investment will be needed to protect Aldi’s position as the UK’s largest discounter. 

Record sales, but profit remains flat 

Aldi UK and Ireland turnover increased by 5% to a record £19 billion in the year ended 31 December 2025. Growth was attributed to more customers buying more products across a larger store estate. 

The results represent a significant improvement on the 1.3% sales growth recorded in the previous year, supported by Aldi’s ambitious opening programme and ongoing investment in its existing estate. 

However, operating profit remained broadly flat at £432.9 million, compared with £435.5 million in 2024. Operating margin declined slightly from 2.4% to 2.3%, as Aldi invested in prices, infrastructure and colleague pay. 

This leaves Aldi facing a familiar challenge: converting additional sales and stores into more profitable growth while maintaining its price advantage. 

£900 million investment for 2027 targets future growth 

Aldi has committed to investing £900 million in 2027, including opening 40 stores and continuing the development of its distribution network. This follows 30 openings planned across the final ten weeks of 2026 and supports its longer-term objective of operating 1,500 UK stores. 

With 1,092 stores currently operating, Aldi believes significant gaps remain in its national coverage, particularly in communities where shoppers have limited access to lower-priced groceries. 

An expanding store estate should add sales and recruit shoppers. However, securing suitable sites is becoming more challenging, with intense competition for limited retail park space. Planning delays can also significantly increase the time required to open stores. 

The productivity of Aldi’s existing estate will therefore be as important as the number of new stores it opens. 

Lidl closes the gap 

The latest Worldpanel by Numerator data for the 12 weeks to 6 September 2026 shows Aldi’s sales growing by just 0.7%, below total market growth of 2.6%. As a result, its market share declined from 10.8% to 10.6%. 

In contrast, Lidl grew sales by 8.0%, increasing its market share from 8.3% to 8.7%. Although Aldi remains considerably larger, Lidl is currently gaining ground. 

Store numbers also provide only a partial picture of their respective scale. Geolytix estimates for the second quarter of 2026 placed Aldi’s UK retail footprint at 13.662 million sq ft, compared with 13.610 million sq ft for Lidl. 

This leaves Lidl with almost the same retail footprint despite operating 1,059 stores, compared with Aldi’s 1,085, reflecting Lidl’s preference for larger formats. These figures include Lidl’s 44 stores in Northern Ireland, where Aldi does not operate. 

Aldi continues to generate more sales and market share from its space, but Lidl’s recent momentum means Aldi cannot rely on its store-number advantage alone. 

This perhaps, is one reason for the new partnership with Deliveroo, which offers a different route to broadening access and generating additional sales from Aldi’s existing estate. 

The trial with Deliveroo will allow shoppers to order around 2,000 Aldi products, with riders picking, packing and delivering orders from stores. If rolled out nationally in 2027 as planned, the service could help Aldi access quick-commerce missions without building its own fulfilment infrastructure. 

Bardon supports operationally sustainable expansion 

Aldi’s new Bardon distribution centre will be central to supporting the next stage of its store-opening programme. 

Once fully operational, the site will support almost 350 stores and handle close to seven million pallets annually. At peak, its fresh operation will process more than 1.5 million kilograms of fruit and vegetables daily. 

Its importance extends beyond labour efficiency. Automated storage, retrieval and handling should increase throughput, strengthen inventory control and allow Aldi’s network to absorb higher volumes without adding equivalent complexity. 

For suppliers, automation will raise expectations around pallet quality, forecast alignment, delivery accuracy and service reliability. Greater growth opportunities will be accompanied by less tolerance for operational inconsistency. 

Everyday-low-price positioning remains central 

Aldi has invested £340 million in reducing prices on over 1,000 products during 2026. This reinforces its everyday-low-price positioning at a time when competitors are increasingly using loyalty pricing and personalised promotions to communicate value. 

Worldpanel by Numerator reported that promotional spending across UK grocery increased by 7.0% year on year in the four weeks to 6 September, compared with full-price sales growth of 1.4%. 

Aldi remains notable for not operating a loyalty programme, providing the same prices to all shoppers but lacking the customer data and targeted promotional tools available to many competitors. 

Greater opportunities for suppliers 

Aldi intends to source at least 50% of products through long-term supplier agreements by 2027. Having spent £14 billion with British suppliers in 2025, these agreements should give producers and manufacturers greater confidence to invest in capacity and support Aldi’s expansion. 

Aldi enters its next investment phase from a position of scale. However, Lidl’s faster growth and near-equivalent retail footprint mean its leadership is being tested more seriously. 

Opening more stores will remain essential, but Aldi’s success will ultimately depend on whether new distribution capacity, improved store productivity and sustained price investment can re-establish market-beating growth. 

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