The UK arm of discount supermarket Aldi said yesterday it would launch an online operation in Britain in 2016, initially selling wine, as it posted a dip in 2014 operating profit reflecting price cuts and higher staff costs.

The privately-owned German grocer said it will begin selling wine by the case online from early next year, followed by non-food “Specialbuys” in the spring, offering customers home delivery and collection from third-party locations.

It said the move formed part of a long-term growth and investment strategy in Britain.

“This will enable us to introduce the Aldi brand and some of our best-selling, best-quality and best-value products to thousands more customers across the UK,” said chief executive Matthew Barnes.

Aldi and rival Lidl are the fastest growing grocers in the UK sector.

Aldi targeting 1,000 UK stores by 2022

With their low-price, limited assortment, low-cost strategy they have been winning share from market leader Tesco, Asda, Sainsbury and Morrison, forcing Britain’s so-called “big four” to cut prices and improve product quality and customer service to stem the loss of shoppers.

Almost half of UK households buying groceries are now visiting Aldi or Lidl every month, researcher Nielsen said last week.

Aldi, now Britain’s seventh largest grocer with a 5.6 per cent share according to market researcher Kantar Worldpanel, made an operating profit of £260.3 million in 2014, down from £271.4 million the previous year.

That profit fall came despite sales increasing 31 per cent to a record £6.89 billion as the company continued its aggressive space expansion. It trades from 598 stores in the UK and is targeting 1,000 by 2022.

While bigger rivals are cutting back on capital expenditure Aldi invested a record £438 million in stores and distribution centres in 2014.

It said the strength of its balance sheet, which had net assets of almost £2 billion at the end of 2014, would underpin its continued investment in the UK.