The supermarket scene in the United States is getting interesting with the entry of a new player on the board. We are talking about the trendy supermarket, Aldi, who have announced a very ambitious expansion plan in North America for 2025, and they intend to open more than 225 stores, a true declaration of intent that has made them reaffirm themselves as a great competitor of the main American chains. Thus, they intend to challenge the already giants of the sector such as Walmart and Costco, increasing their presence throughout the country and consolidating themselves as the third largest supermarket chain in the US in number of stores.
What is Aldi?
The supermarket that is breaking into the North American scene, of German origin founded in 1946. Known for its business model based on low prices and own-brand products, Aldi has managed to expand to more than 20 countries with record growth. Its focus on operational efficiency, cost reduction and the elimination of unnecessary luxuries allows it to offer high-quality products at prices accessible to consumers, and it is being noticed in our cities.
Aldi’s plan
Aldi plans to expand by converting some stores (which belong to its own brand), these are Winn-Dixie and Harveys supermarkets and there will be a total of 220 Southeastern Grocers stores that will change the neon signs by 2027 and become Aldi, because, why go little by little when you can go big?
Its plan is simple, Aldi has sold 170 stores that will not be part of the rebranding, so, it has decided to get rid of them by selling them to a group that includes C&S Wholesale Grocers (also Southeastern and Grocers and other private investors). According to the company’s statement, this move will allow Aldi to focus all its attention on expansion.
What about Winn-Dixie and Harveys locations?
CEO Jason Hart made it clear that some Winn-Dixie and Harveys locations would remain in operation, but that they will be key to Aldi’s growth, and he expects those teams to lead the company in the right direction, because they have managed to provide the best quality and service and to be at the forefront of savings for shoppers. There has already been a first wave of “reconversion” and they have already opened their doors, and they expect at least 100 of them to be open as Aldi by the end of the year.
In addition to its growth in the Southeast, Aldi also has expansion plans in the Northeast and Midwest of the country, in Southern California and in Arizona.
The strategy thus seeks to increase the brand’s presence in areas where consumers need other, more affordable alternatives in the face of inflation and the high cost of living today.
Aldi, trending topic in the USA
We were talking about record growth, and in 2023, the chain opened almost 120 new stores, surpassing 2,400 locations and consolidating itself as the third largest supermarket retailer in the country. According to company data, one in four American households already shops at Aldi, a figure that has doubled in just six years.
Consumer interest in Aldi is due to its business model based on three very important points:
- Fewer employees and greater operational efficiency.
- They have high-quality, low-cost own brands.
- Smaller, more cost-efficient stores to reduce costs
Aldi is presenting itself to the market as an efficient and low-price alternative (without reducing the quality of its products), now it is its competitors who will have to adapt to the low-price giant! This battle of prices has just begun! Who will be the first to reach the finish line? Who knows!