The German-owned business has pledged to continue to provide the lowest grocery prices in the country.
In its annual trading update, Aldi said it had attracted record numbers of new shoppers in the past six months as pandemic restrictions were lifted.
The latest data from Kantar shows Aldi attracted 1.5 million extra customers to its stores over the past 12 weeks and sales grew at 18.7 per cent.
Aldi said its buying teams were working to counter the impact of inflation and maintain its discount against traditional full-price supermarkets.
The supermarket, which has more han 970 stores, said the 16 new stores would help it create more than 6,000 new jobs across the country this year as it continues to expand.
The areas in West Midlands where it is currently looking for sites include Birmingham.
Aldi is searching for freehold town-centre or edge-of-centre sites suitable for property development. The sites should be able to accommodate a 20,000 sq foot store with around 100 parking spaces. Ideally the location will be near a main road with good visibility and access.
Aldi will also be investing in the development of new and expanded distribution centres, including its new distribution centres in Bedford and distribution centre in Leicestershire.
Giles Hurley, chief executive for Aldi UK and Ireland, said: “The cost-of-living crisis is worsening, and it’s being felt by millions of households across the UK. It’s in times like these when our customers rely on us the most, which is why we’re focusing on continuing to deliver our longstanding price promise by offering the lowest possible prices in Britain, every single day.
“Independent research shows our discount is as compelling as ever and that’s why more and more people are switching to Aldi. We will do whatever it takes to maintain our discount to the traditional full price supermarkets and keep grocery prices as low as possible for the millions of customers that shop with Aldi.”
A new store is being built this year in Shrewsbury and there have also been extensions to stores including in Goldthorn Hill, Wolverhampton.
A new store has also opened in Walsall and a new Aldi is in the planning stages for Sedgley. Refurbishment is planned for its Bearwood store.