Aldi reports record sales but profits hit by price war

Discount supermarket Aldi has reported record sales in the UK and Ireland for 2015 and said it will invest £300m in revamping its stores, but profits have been hit by the supermarket price war.

Sales rose 12% year-on-year to £7.7bn for the year to 31 December 2015.

But operating profits fell 1.8% to £255.6m which it attributed to "continued investment in prices".

Aldi said it would invest more in fresh produce, alcoholic drinks and ready meals, and refurbish 100 stores.

Chief executive Matthew Barnes said the move was the result of a "listening exercise" involving more than 50,000 shoppers.

Expansion plans

The German-owned firm added that it would open 70 new stores in the UK next year as part of plans to increase the number of its outlets from 659 to 1,000 by 2022.

Aldi said it had doubled revenue in just three years and attracted 761,000 new customers in the UK. Its share of the UK grocery market now stands at 6.2%.

In August Aldi was the stand-out winner in all four categories at the 2016 British Baker Christmas Star awards, with Nevis Bakery and Bakkavör Bread winning the highly recommended accolades.

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