* Plans 100 new stores
* To create 2,000 new jobs
* 2020 sales up 10.2%, profit down 1.2%
* Says weathering supply chain disruption
(Adds detail, CEO comments)
By James Davey
LONDON, Sept 27 (Reuters) - German discount supermarket
group Aldi will invest 1.3 billion pounds ($1.8 billion) in
Britain over the next two years, opening a new store every week
to try to accelerate its rapid growth in market share, it said
on Monday.
The retailer plans to open another 100 new stores in
Britain, expand its logistics infrastructure, including a new
distribution centre in central England, and invest in
technology.
It will create more than 2,000 new British jobs next year,
adding to the 7,000 permanent roles created over the past two
years.
"Around 88% of British consumers want to shop in stores ...
There's no doubt that bricks and mortar is the focus for our
business," Giles Hurley, the CEO of Aldi's business in Britain
and Ireland, told reporters.
Aldi and German rival Lidl have grown rapidly in Britain
over the last decade, forcing the established big four
supermarkets - Tesco, Sainsbury's Asda and
Morrisons - to cut prices and compete more aggressively.
Aldi is now Britain's fifth-largest supermarket group. It
currently trades from 920 UK stores and has an 8% market share.
However, its share edged lower at some points during the
pandemic, partly due to a lack of a significant online business.
The British and Irish business, privately-owned by Aldi Sud
, said 2020 sales rose 10.2% to a record 13.5 billion
pounds, but operating profit fell 1.2% to 287.7 million pounds,
reflecting the costs of COVID-19.
The crisis prompted the business to accelerate its push into
home delivery via a partnership with Deliveroo. It also
introduced a click-and-collect service that's now live in 200
stores, and is trialling a checkout-free concept store in
Greenwich, southeast London.
BETTER PLACED
Hurley said although no UK retailer could be immune from
current supply chain disruption, Aldi was better placed than
rivals.
Aldi's limited product range means it has a smaller supplier
base, while the majority of products it sources for its British
stores come from local suppliers and manufacturers.
"That means our supply chain is just that little bit shorter
and easier to control," he said.
Hurley also noted that the majority of its drivers are
directly employed.
"It's very much business as usual. Yes things are tighter
but our trucks and our deliveries are rolling across the UK, our
stores are full and we'd encourage customers to shop as normal,"
he said.
The CEO said nobody in the market could guarantee there
would not be inflation this Christmas.
"What I am able to guarantee is that customers will always
get the lowest prices in Aldi irrespective of what the future
holds."
($1 = 0.7311 pounds)
(Reporting by James Davey Editing by Pravin Char and Mark
Potter)