Aldi reports record sales but profits drop amid price war

Aldi has reported record sales in the UK and Ireland for last year but its profits have fallen sharply amid a fierce price war among supermarkets.

The German discounter said sales rose 13.5% to £8.7bn in 2016, but operating profit dropped 17%.

The chain blamed the fall on its “continued investment in prices and infrastructure”.

Aldi chief executive Matthew Barnes said its strategy was to offer “the lowest prices in Britain”.

“We’re doing everything we can to insulate customers from those cost increases, making sure our prices are the lowest in the UK, every day of the year,” he said.

Aldi, which currently has 726 stores in the UK, said it planned to open a further 70 this year and would invest a further £459m.

The German chain currently has a 6.9% share of the market, according to the latest industry figures from Kantar Worldpanel.

This figure makes it the fifth-biggest supermarket in the UK after Tesco, Asda, Sainsbury’s and Morrisons.

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