Aldi announces €73 million Dublin expansion

Total investment in Ireland in 2021 stood at €96 million with €23 million increase in sales on 2020 to over €2 billion

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29 November 2022 | 0

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Aldi has revealed details of an ambitious plan to expand its store network in Dublin to include €73 million investment in 11 new stores in the city over the next five years. The retailer says 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 €23 million 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.

The latest Kantar data shows sales growing at 3.5% with market share of 12.7%**.

Aldi said the reduction in profit reflects its “resolute focus on putting colleagues, customers and suppliers before profits”. The company added 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.

Investment in Ireland

As outlined in 2021, Aldi plans to invest €320 million 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 €96 million. 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 €14.6 million 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.

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,” he added. “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.”

“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,” O’Connor added.

*(Source: Kantar data, 52 weeks, 27 December 2021)

**(Source: Kantar data, 12 weeks to 20 October 2022)

 

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