Aldi, which is celebrating its 50th year in the U.S., is seizing the opportunity. The grocer announced this month it will open 180 locations across 31 states this year, including in new markets in the Southeast and West, making its total store count close to 2,800 by the end of the year.
The expansion is part of Aldi’s plan to spend $9 billion in store openings and three distribution centers to reach its goal of 3,200 stores by the end of 2028. In comparison, Kroger and Albertsons have about 2,800 and 2,200 stores, respectively, in 35 states and the District of Columbia under various banners. There are more than 600 Costco’s and more than 3,500 Walmart Supercenters in the U.S.
[...]
Aldi is widely recognized as the fastest growing chain across the grocery sector. Real estate services firm JLL reported Aldi outpaced competitors in both openings and square footage added from 2019 through 2024, the latest year with available data.
[...]
Aldi’s main draw is its below-market prices, a key advantage over its big box and supermarket competitors. Although Walmart, Target, Albertsons and Kroger have all increased their private-label offerings, about 90 percent of the products in an Aldi store are deeply discounted offerings from its house brand. This innovation shaves down the middleman costs from distributors and consumer goods companies.
Aldi also has a smaller store footprint than the traditional grocery stores, requiring less product assortment and fewer staff members. Stocking shelves takes a fraction of the time, since most products are displayed in the boxes they were shipped in, and shoppers bag their own groceries.
Finally, Aldi is ruthless at undercutting its competition, said Katrijn Gielens, a professor of economics and marketing at Tilburg University in the Netherlands. The chain is known for reducing prices when it enters a new market to entice customers to try them out. And once they’ve shopped at Aldi, they’re more willing to stay, she said.