ALDI has confirmed it plans to open 200 new stores in the US this year, to make it the fastest-growing retailer in the country after the two big dollar-store chains.
This will be its biggest expansion in this country, seeing the German discount grocer push into new cities and neighbourhoods around the US.
The discount grocery chain has a five-year growth plan to add 800 stores by the end of 2028[/caption]
As a grocery store that is smaller than traditional ones in America, Aldi relies heavily on its ability to deliver low prices through providing its own products.
“You can shop on a real budget at Aldi and get quite a lot for your money,” said Neil Saunders of research firm GlobalData.
He added that “this is really Aldi’s time to shine”.
The international store is planning to open in some of the most densely populated and expensive areas of the country.
The largest is expected to come to New York City next summer, which will be situated near Times Square to capitalise on tourist foot traffic, as well as the neighbourhood’s growing population.
Vice president of national real estate for Aldi, Dan Gavin, said about the choice in location: “Obviously there’s a lot of mouths to feed.”
It can be approaches as an even lower-budget Trader Joe’s, which was also actually founded by German brothers Karl and Theo Albrecht.
The chain has reportedly been responding to a customer base of shoppers who are very aware of inflation going on, and therefore are drawn towards lower bills on their groceries.
This is particularly for organic produce and select-cut meats – which Aldi offers.
About 90 per cent of its items are also sold as own-label products.
They are pulled off tracks then placed directly on supermarket shelves, and displayed in crates, which helps save on time and costs which involve employees individually stocking the items.
Aldi is believed to have invested in approving its food quality and store appearances in recent years.
American shoppers are also seen to be moving more towards smaller-sized grocery stores and private-label brands following previous domination of big-brand shopping.
Post-pandemic has also brought inflation and increased food prices, driving shoppers towards Aldi for their groceries.
The store has an added “treasure hunt” experience which has been attracting customers since the pandemic, as it has a constant rotation of items.
The “Aldi Finds” aisle provides some anticipation for shoppers looking for good deals and discounted items that are not just food.
Jeff Edison, who is the Chief executive of real-estate investor Phillips Edison, said: “When you’re going into an Aldi you’re kind of exploring.
“The person going in there is saying, ‘Oh look, tomatoes are on sale, let’s do BLTs for dinner.’”
The new store Times Square Aldi will open in the base of the luxury rental building the Ellery, expected to come next summer.
It will measure 25,000 square feet, making the store larger than typical.
The first Aldi store in the US opened in Iowa in 1976, and it is now the third-largest grocery chain by store count in the country.
Almost half of new store’s opening this year will be from conversions of former Winn-Dixie and Harveys Supermarkets, after Aldi qacuired the two chains from Southeaster Grocers in 2023.
There are plans for more than 800 stores to be established by the end of 2028.
