Aldi confirms plans for new stores this year

Aldi entered the Irish market over 20 years ago and now employs over 4,650 people and operates a network of 155 stores across the country.

Discount grocer Aldi has confirmed plans to open new stores in Dublin this year, as well as in other locations around the country.

The German chain announced it will expand its store network in Dublin with a €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 look forward to continuing to grow our presence in 2023 in Dublin and around the country,” said Niall O’Connor, Aldi group managing director.

Mr O’Connor hinted to the Irish Examiner in recent months that he had ambitious expansion plans for Aldi’s Irish arm, especially in Dublin, despite high costs due to soaring inflation.

“If we open more stores, we dilute our fixed costs which makes us more efficient,” said Mr O’Connor in October.

Aldi Ireland currently operates over 20 stores in Dublin. The company expressed interest in 25 potential sites in the capital and last year the grocer entered talks to put non-retail developments on these sites in order to secure the locations.

Aldi Ireland’s latest expansion plans follows record Christmas sales for the retailer as people shopped for cheaper goods amid a cost-of-living crisis.

“As the cheapest supermarket in Ireland, Aldi will remain steadfast in our commitment to reinvesting in Ireland, to shielding and insulating Irish consumers from price increases and to continuing to work closely with our Irish supplier network,” said Mr O’Connor.

The British arm of Aldi also said its sales in December rose compared to the previous year, reflecting the opening of new stores and consumers' search for savings.

Aldi UK, privately owned by Aldi Sud, also committed to offering shoppers the lowest grocery prices throughout 2023 "no matter what".

It said its sales topped £1.4bn (€1.5bn) in December for the first time.

It highlighted strong growth in sales of fresh meat, with fresh poultry and pork options both up over 28%.

It said sales of chilled desserts and fresh cheeses jumped by almost 30% and 50% respectively, while sales of snacks such as crisps and nuts were up over 40% as the men's soccer World Cup coincided with the run up to Christmas for the first time.

Meanwhile, Aldi recently pledged to invest €320m from 2022 to 2023 in a bid to grow it share of the Irish grocery market.

Aldi has a lower market share of over 12% compared with other leading grocers in the Irish market Dunnes and Tesco, according to Kantar research. However, updated Kantar figures are expected in the coming weeks.

Aldi entered the Irish market over 20 years ago and now employs over 4,650 people and operates a network of 155 stores across the country, with stores in each county in the Republic of Ireland.

- Additional reporting by Reuters