Aldi to contribute £11.5bn to GDP by 2022

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Fred Searle

BY FRED SEARLE

Aldi to contribute £11.5bn to GDP by 2022

Discounter adding considerable value to UK economy and supporting British suppliers, says new report

Aldi to contribute £11.5bn to GDP by 2022

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Aldi is playing a significant role in adding value to the UK economy and supporting British businesses, according to a report from the Centre for Economics and Business Research (Cebr).

The analysis shows that Aldi contributed to the generation of over £8.5 billion in 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 reaches its target of opening 1,000 UK stores.     

The report also predicts that Aldi’s growth during the next five years will provide a £2.2bn boost for British businesses if, as predicted, the Gross Value Added (GVA) by its UK supplier relationships increases from £4.5bn in 2016 to £6.7bn by 2022.     

This increase is a result of Aldi sourcing products manufactured or grown in Britain whenever possible, the report concluded. 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.

Matthew Barnes, chief executive of Aldi UK and Ireland, said: “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.”

The main findings of the report were that:

– Aldi’s GDP footprint of over £8.5bn represented 0.5 per cent of UK GDP in 2016. Growth in GDP was achieved through job creation, spending with British-based businesses, tax contributions and capital investment.

– 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.

– By 2022, Aldi will support at least 205,000 direct and indirect jobs, which would generate an estimated £5.9bn in employee compensation.

– In 2016 Aldi worked with more than 1,000 UK businesses, representing over 77 per cent of the cost of all goods it sold in the UK.

– For every £100 of GVA generated by Aldi, an additional £720 of GVA contribution was generated in the wider economy in 2016.

– Aldi’s activities catalysed an estimated £1.6bn tax contribution in 2016

Between 2005 and 2016, Aldi has invested £3.2bn in its UK stores and distribution centres. The chain now includes 726 stores and nine regional distribution centres in the UK.

Oliver Hogan, who is the director of Cebr and the principal author of the report, commented: “Aldi’s GVA 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.”

Aldi is the UK’s fifth largest supermarket and holds a seven per cent share of the grocery market.  

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