Aldi has today announced an ambitious plan to expand its store network in Dublin to include a €73 million investment in 11 new stores in the city over the next five years.
The new stores will see the creation of 350 full-time permanent jobs and 550 construction jobs over the period.
Business Performance
The investment follows a steady year of trading. Aldi’s turnover in Ireland grew by 1% to over €2 billion in the year to 31 December 2021, up by €23 million on 2020.
Aldi increased its total customers in 2021 by a further 4%, with 83% [Kantar data, 52 weeks to 27 December 2021] of shoppers visiting the retailer as people increasingly seek value and savings.
For the period, Aldi was also the preferred supermarket for the ‘full trolley shop,’ with the retailer scoring highest among shoppers for the average number of items purchased in a single shop.
Latest data shows sales growing at 3.5%, with market share of 12.7% [Kantar data, 12 weeks to 20 October 2022].
The company said that the reduction in profit reflects the retailer’s 'resolute focus on putting colleagues, customers and suppliers before profits.'
The company said that it made substantial investments to keep prices low for customers, in addition to further investment in staffing and remuneration.
Dublin Investment
Aldi is currently examining 25 sites as potential locations for its 11 stores.
The retailer has agreed terms for a store in Adamstown, while plans are advancing on an additional 10 stores over the next five years.
With 24 stores currently in the capital, Aldi has made capital investment of €167 million in Dublin over the past 20 years.
The addition of 11 new stores would bring the total Aldi store network in Dublin to 35 by 2027.
The retailer currently employs over 670 people in Dublin with a €20.3 million total salary spend across its 24 stores in the county.
Working with 90 local producers, Aldi spent €184 million with these Dublin based suppliers in 2021.
Additionally, the retailer will invest almost €2.1 million as part of its Project Fresh initiative.
Aldi Project Fresh stores focus on reducing the reliance on fossil fuels, using sustainable energy supply, and saving CO2 emissions.
Aldi has pledged to invest €60 million to revamp the design and energy efficiency credentials of its store network as part of the Project Fresh store upgrades, which have been taking place since 2017.
Sustained Value
“Despite the continuing impact of Covid-19 on our business last year, we continued to grow and invest as part of our ongoing commitment to deliver sustained value for our customers, our people and our Irish suppliers," said Niall O'Connor, group managing director at Aldi Ireland.
"We made substantial investments to keep prices low for customers, increasing our store network and creating employment.
"We plan to continue on this trajectory by prioritising our 2023 ambition to expand in Dublin.
"We will continue to invest in the interest of our customers and keeping prices low despite the current challenges.
“Our accounts for 2021 show our sustained investment in Ireland with our focus on investing in our discount retails, extending our store network and leading the market on salaries for all of our colleagues.
“With a plan now in place, and a dedicated investment fund ready, we are eager to make swift progress and see new Aldi stores open from next year.
“We are acutely aware of the impact of this current inflationary period on our customers, our people, our suppliers and on the communities where we operate.
"This is why it is important that the necessary conditions are in place to facilitate and support our expansion.
"New stores in 2022 means we create employment where it matters, we create opportunities for local businesses and suppliers to supply a large retailer, and we offer choice in retail for customers at a time when competition and low prices matter most.
© 2022 Checkout – your source for the latest Irish retail news. Article by Maev Martin. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.
