ALDI’s total investment in Ireland in 2021 stood at €96m with €23m increase in sales on 2020 to more than €2bn.
ALDI has revealed an ambitious plan to expand its store network in Dublin to include €73m 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.
“We made substantial investments to keep prices low for customers, increasing our store network and creating employment”
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 €23m on 2020.
ALDI increased its total customers in 2021 by a further 4%, with 83%* 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%.
The company said that the reduction in profit reflects the retailer’s resolute focus on putting colleagues, customers and suppliers before profits. The company 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 €167m 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 €20.3m total salary spend across its 24 stores in the county.
Working with 90 local producers, ALDI spent €184m with these Dublin based suppliers in 2021.
Additionally, the retailer will invest almost €2.1m 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 €60m 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 investment in Ireland
As outlined in 2021, ALDI plans to invest €320m in 30 new stores over the next three years, on top of the €1.6 billion it has invested since it entered the market more than 20 years ago.
Total investment in Ireland during 2021 was €96m. In September, ALDI announced its West of Ireland expansion programme which will see the retailer invest €63m over the next two years and create 140 full time jobs. Following the recent opening of stores in Ballina, Tuam and Mountbellew, another two stores will open in Athenry and Ballyhaunis.
ALDI has also invested a further €14.6m in rebuilding and revamping its existing stores in Killarney, Clonmel and Wexford Trinity Street in 2022, while a new store has just opened in Ardee and another one set to open in Castlecomer shortly.
ALDI employs over 4,650 people across 154 stores and supports over 330 Irish suppliers. The retailer is currently seeking to fill 450 store assistant roles across all 26 counties as new stores open and customer demand increases ahead of the busy Christmas period.
“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,” said O’Connor.
Main image: Photo by Marques Thomas on Unsplash
