Aldi has announced a five-year expansion plan that will see the opening of 800 more of its discount supermarket stores across the United States (US) by the end of 2028.
US Expansion of Aldi
On Thursday, the German low-cost grocery store giant revealed its plan to establish hundreds of additional stores throughout the US over the next five years, significantly increasing its presence in the country.
The new stores would be a combination of newly built outlets and converted stores currently operating under different names that Aldi has bought. Aldi now has over 2,300 outlets in the US.
In a statement, the company said this expansion plan "will bring even more communities great products at the lowest possible prices during a time when consumers are more focused than ever on saving money."
Aldi also announced the successful acquisition of Southeastern Grocers and its Winn-Dixie and Harveys Supermarket stores, which will fuel growth in the Southeast region over the next few years.
"Our growth is fueled by our customers, and they are asking for more ALDI stores in their neighborhoods nationwide," Aldi CEO Jason Hart said in the statement.
"With this commitment to add 800 stores in the next five years, we'll be where our shoppers need us while positively impacting the communities we serve," he added.
Aldi estimates that the expansion will cost $9 billion over five years. The company will add almost 330 stores across the Northeast and Midwest regions by the end of 2028.
It will also increase its presence in the West by opening more stores in Southern California and Phoenix and entering new cities, including Las Vegas.
Perfect Timing of Aldi
Many people's shopping habits have changed because of inflation. According to ABC News, consumers are eager to find new ways to reduce spending since prices have remained around 19% higher than before the COVID-19 pandemic.
They shop at bargain retailers, purchase store brands instead of name brands, or reduce their purchases of certain products, such as snacks and gourmet meals.
Government statistics show that although annual increases in food costs for household consumption in the US average 2.5%, they surged 11.4% in 2022 and will climb an additional 5% in 2023.
Considering these numbers and the fact that Americans are starting to feel the effects of high costs, it is reasonable to conclude that Aldi's growth is well-timed.
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