• UK & Ireland sales rise 12% to £7.7bn in year to December 31 
  • Operating profits fall 1.8% to £255.6m
  • Plans to spend £300m on store refresh initiative
  • 70 new stores to open in 2017 as part of bid to reach 1,000 by 2022

Aldi has unveiled plans to spend £300m on revamping its UK and Ireland stores, but its full-year profits were hampered by its investment in price.

The German discounter revealed details of a new format for its stores as it posted a 12% jump in sales to £7.7bn in the year to December 31. This represents a doubling of its UK revenues in just three years.

A like-for-like sales figure was not disclosed.

Operating profits slipped 1.8% to £255.6m, which Aldi said reflected its “continued investment in price”.

Growing market share

The discounter has grown its market share to 6.2% as it continues to disrupt the UK grocery sector with its German rival Lidl.

Aldi, which has 785 UK and Ireland stores, said its new store format will include newly designed fixtures for beers, wines and spirits, fresh produce and baby and toddler, as well as a new food-to-go fixture.

Stores will also get a “significant” increase in chill space, the retailer said.

Aldi said the refresh is designed to “enhance shopper experience and showcase quality”. The retailer expects more than 100 stores will be refurbished in 2017.

Seventy new stores are expected to open as it moves ahead with plans to have 1,000 UK and Ireland stores by 2022.

Aldi’s UK and Ireland chief executive Matthew Barnes said: “We’re doing what I have always said we would do – investing our margin to maintain a significant price advantage over our competitors.”

The retailer claimed it attracted 761,000 new customers in 2015.