Aldi has pledged to continue cutting its prices in a bid to build its market share in Britain as shoppers struggle with the cost-of-living crisis.

The German discounter said it hoped to ‘tackle food affordability’ in the run up to Christmas, as it boasted record sales of £19billion in the year to December 2025.

It said it had earmarked £900million for store openings and new distribution centres in the coming year as part of a drive to reach communities ‘cut off from affordable groceries’.

The Middle East conflict and adverse weather over summer have seen forecasts for food price inflation climb to nearly 4 per cent by the end of the year and exceed 6 per cent by the middle of 2027.

A £100 food shop six years ago now costs just under £140 as heatwaves and energy taxes pile pressure on future food prices, according to analysis by the Food and Drink Federation.

That has seen demand for discounters grow, with Aldi reporting a 5 per cent increase in turnover to £19billion in the 12 months to December 31, 2025 thanks to its ‘relentless focus on simple, everyday low prices’.

It said it had invested £340million in cutting prices across core products such as butter, meat and frozen fish.

Giles Hurley, chief executive of Aldi UK and Ireland, said: 'The cost of food remains one of the biggest pressures on households across the country. Recent droughts at home and events overseas have highlighted just how fragile our food system is and why food security must be a long-term national priority.

'We’re working hard to make good food more affordable for every family – cutting prices on everyday essentials, signing long-term supplier agreements to help increase home-grown production, and continuing to bring affordable groceries to even more communities through our store opening programme.

'This is why more customers are buying more products at Aldi – our relentless focus on simple, everyday low prices and award-winning quality.'

Aldi, which currently has 1,092 stores in the UK, said its fresh investment in the UK would include 40 new stores and continued works on its distribution network.

It plans to open 30 stores over the next ten weeks, including in Dumbarton, Newport and Willesden, London.

It comes as Aldi ramps up efforts to increase its share of the UK grocery market, which currently stands at 10.6 per cent. But data from Worldpanel showed the supermarket’s sales have slowed in recent months, rising just 0.7 per cent in the 12 weeks to September 6.

Meanwhile, Aldi today reported operating profits were flat for the year at £432.9million as the group continued to invest in prices, infrastructure and staff pay.

The chain increased store assistant pay twice this year, with staff taking home a 'market-leading minimum' of £13.50 an hour nationally, and £14.88 within the M25.