Aldi is to open 40 new stores in a £900m expansion as Iran war and droughts threaten a food price surge

From the Newshound archive · first published 28 September 2026.

Aldi chief executive Giles Hurley warned that British households could face steeper food bills, with elevated shipping costs linked to the Iran war, recent droughts and the possible arrival of a 'super' El Niño weather pattern all adding to the pressure. The discount grocer recorded a turnover of £19bn in 2025 — a new high — though earnings slipped 1% to £432.9m, squeezed by investment in lower prices and a rising wage bill. Analysts expect food inflation to climb from 1.3% to 6.4% by next July.

Aldi has 1,092 UK stores and wants to grow to as many as 1,500; Monday's £900m commitment will fund 40 new openings and upgrades to its warehouse network.

Hurley attributed the record 5% sales rise to a £340m programme of price reductions on butter, meat and frozen fish.

Hurley said food security 'must be a long-term national priority', warning Britain's food system is 'fragile'.