Aldi UK sales reached record levels as the supermarket unveiled plans to invest £800million in more than 20 new stores by the end of the year. 

The supermarket chain, which currently has more than 1,000 stores, revealed its sales grew 16 per cent to £17.9billion for the 12 months to December 2023.

The results mark the group's highest ever period of sales growth.

Over the same period, pre-tax profit more than tripled to £536.7million from £152.6million.

Following the upbeat results, the budget retailer revealed it planned to open 23 new stores before the end of the year.

Locations include Muswell Hill in London and Caterham in Surrey.

The investment will come in a record £800million annual investment programme and a £1.4billion two-year plan.

It had previously revealed that it plans to open 500 stores, taking its total to 1,500 across the UK. 

Aldi said its focus on lowering prices and opening stores would bring 'high-quality, affordable groceries to millions more British families'.

Giles Hurley, chief executive officer for Aldi UK and Ireland, added: 'For every £1 of profit generated last year, we're investing £2 this year – opening more stores and building the supply infrastructure to bring high-quality, affordable groceries to millions more families the length and breadth of Britain.

'We're also investing at record levels to cut prices, reward our amazing colleagues and support more causes in our local communities. 

'All while creating thousands more jobs and even more opportunities for our growing base of British suppliers and farmers.'

Aldi's success has come at a time when millions of cash-strapped shoppers have deserted the more expensive traditional grocers during the cost-of-living squeeze. 

In June, results from Which? found the average bill for a trolley of 65 items at Aldi was £118.41, coming in £32.60 less than at Waitrose, which was the most expensive, at £151.01. 

The group had previously broken its record sales total, with an 8 per cent rise in the four weeks to 24 December, topping £1.5billion for the first time.