Aldi has said it wants to open 500 more shops in the UK amid ambitious growth plans after marking the opening of its 1,000th store in Surrey.

The discount retailer, and Britain’s fourth biggest grocer, said it set the new target having seen “huge demand” from people wanting to switch supermarkets to access cheaper prices.

It builds on a previous goal of opening 1,200 stores by the end of 2025.

The chain has not given an update on the progress of its expansion plan, but it would need to open 100 stores a year in order to reach that target. This would mean upping the current pace of its expansion, having opened 100 shops in just under three years.

Aldi did not put a time-frame on the new goal but said it will happen in the “coming years”, as it needs to hunt for new locations across the UK.

Giles Hurley, the chief executive of Aldi UK and Ireland, said: “Our popularity is growing, and there is huge demand for people to have an Aldi store near to them to increase shoppers’ access to our unbeatable prices.

“The next phase of our expansion will involve another 500 new stores over the coming years.

“It is a long-term target and is not a ceiling to our ambition to have an Aldi store close to everyone in the UK.”

The Germany-headquartered chain, which first launched in the UK in 1990, has been rapidly growing its market share across the country.

It has been named the UK’s cheapest supermarket, according to consumer champion Which?.

Mr Hurley said 1.1 million more customers walked through its doors over the past year.

In an interview with Sky News, the boss said Aldi is “more popular than it’s ever been” as households face cost-of-living pressures.

He added: “What we recognise most of all is that there are communities across the UK who continue to pay high prices for their groceries because they only have access to a traditional full-price supermarket or their more expensive convenience arms.”

Aldi, which employs 40,0000 people, opened its 1,000th store in Woking, Surrey on Thursday.

It recently said it was calling for staff affected by the collapse of retailer Wilko to get in touch as it has about 6,000 jobs currently available across its stores.