German discount supermarket Aldi said it plans to invest £1bn (€1.1bn) into the UK market to open new stores and distribution centres over the next two years.

It said the investment will fuel further market share expansion in the UK grocery market, which is valued at £190bn (€215bn).

Aldi UK operates 840 stores across the UK, making it the fifth-largest supermarket in the UK with an 8% share of the grocery market.

By 2025, the company said it is targeting 1,200 stores.

“We’ve never been focused on short-term profits. Our focus is on growth, it’s on sales, stores and customer numbers.

"Private ownership means we can run the business for the long term and we don’t have to answer to shareholders,” said Aldi UK chief executive Giles Hurley.

For 2018, Aldi UK recorded sales of £11.3bn (€12.8bn) and made operating profits of £198m (€223m). Its operating profit margin narrowed from 2.6% in 2017 to 1.75% last year as it invested in lower prices to win new customers.