UK discount retailer Aldi is making a huge commitment to British suppliers over the next five years, stating it will increase the amount it purchases from them by £3.5 billion per year.
Buoyed by a strong 2020 and eyeing greater expansion in the future, the supermarket chain says it is creating more than 4,000 jobs as well as “new opportunities for British food and drink producers.”
“We are expecting significant sales growth in 2021 as we open new stores and bring Aldi to more locations across the UK,” said Giles Hurley, Chief Executive Officer at Aldi UK. “With the vast majority of our grocery products now coming from British suppliers, our growth will lead to additional jobs and investment in our UK supply chain.”
The company said it is investing £500 million in new and upgraded stores, distribution centres and its supply chain in 2021. Aldi’s new pledge “will help hundreds of small British businesses continue to grow with the supermarket and invest for the future.”
Because of the challenges that those business continue to face because of the pandemic, Aldi says it is extending the immediate payment terms for small suppliers until the end of 2021.
The company will continue to process payments for suppliers with an annual turnover of less than £1m with Aldi as soon as they are submitted. It says more than 1,000 small British businesses in the supply chain will benefit.