Discount supermarket chain Aldi said its contribution to the UK economy is set to reach £11.5bn by 2022 as it completes its target of 1,000 UK stores.
The group said a new report by the Centre for Economics and Business Research (Cebr) highlights the significant role the discount chain plays in adding value to the UK economy and supporting British businesses.
The analysis shows that Aldi helped generate £8.5bn in Gross Domestic Product (GDP) to the UK economy in 2016, through job creation, spending with British-based businesses, tax contributions and capital investment.
This is set to grow to £11.5bn by 2022 as Aldi rapidly expands across the UK.
The report predicts that Aldi’s growth during the next five years will provide a £2.2bn boost for British businesses, as the gross value added of its UK supplier relationships will increase from £4.5bn in 2016, to £6.7bn by 2022.
It said this increase is a direct result of Aldi sourcing products manufactured or grown in Britain whenever possible. Last year the supermarket worked with more than 1,000 UK businesses and generated 77 per cent of its sales from products sourced via UK suppliers.
Aldi said its focus on British-based sourcing along with its efficient ways of working, helped shoppers save an estimated £2.2bn last year if they shopped at Aldi instead of the big four supermarkets (Tesco, Sainsbury's Asda and Morrisons).
Matthew Barnes, CEO of Aldi UK, said: “For the first time, this report demonstrates how the positive impact of Aldi’s low priced, high quality products stretches beyond our stores.
"Our approach to sourcing as local as possible means that shoppers are able to enjoy the best value products, with the confidence that they’re supporting British companies and jobs.”
Oliver Hogan, director of Cebr, economist and principal author of the report, added: “Aldi’s gross value added contribution of £100 generating an additional £720 is impressive, yet logical when you take time to consider the retailer’s extensive links with the wider domestic and export economy.
"This is driven by the efficiency and flexibility of Aldi’s business model, which is set to continue to meet the cost and competitive pressures of the grocery market. Ultimately, this will help the supermarket to sustain growth and drive prosperity for the wider economy as Aldi’s supply chain is so heavily British-based."
Last year Aldi supported 146,000 direct and indirect jobs across the UK, which is equivalent to a 0.5 per cent share of total UK employment in 2016. This catalysed the generation of an estimated £4.3bn in employee salaries.