Asda, the British arm of U.S. retailer Wal-Mart Stores, said on Monday it would invest over 500 million pounds this year, opening 25 new stores and three depots and creating up to 5,000 jobs.
Britain's second-biggest supermarket group behind Tesco also said it would extend and refurbish 43 existing stores.
The 25 new stores will add over 600,000 square feet of net selling space, through superstores, small format supermarkets and Asda Living outlets.
The three new depots will add capacity to the firm's logistics network so it can meet planned growth.
Asda currently trades from 528 UK stores and depots, employing over 180,000.
The firm has not yet updated on Christmas trading.
Earlier this month Tesco sent shockwaves through the sector when it reported a disappointing Christmas performance and issued a profit warning.
(Reporting by James Davey; Editing by Adveith Nair)