Grocery giant Aldi plans to add 800 new stores in the U.S. over the next five years.
The German-owned, Illinois-based chain said in a release Thursday it plans to build or expand hundreds of Aldi locations in the company's existing Northeast and Midwest strongholds, as well as in the western U.S. and Southern California. A first Las Vegas location is planned, too.
Meanwhile, in the Southeast, the company will convert many Winn-Dixies and Harveys locations into Aldis, though "a meaningful" number of them will remain under their current brands. Aldi said Thursday its acquisition of Southeastern Grocers, the parent company of Winn-Dixie and Harveys, had been completed.
Aldi said it expects that about 50 stores will begin the conversion process in the latter half of 2024, with the majority of them reopening as Aldi in 2025.
“Our growth is fueled by our customers, and they are asking for more Aldi stores in their neighborhoods nationwide,” CEO Jason Hart said in the statement. He continued, "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."
According to SupermarketNews.com, Aldi was the 13th-largest U.S. grocer as of last summer — only slightly larger than Dollar General in terms of market share — but it currently ranks as the fastest-growing grocery retailer in the U.S.
Known for its lower prices via private-label selections, Aldi has ambitious growth plans that represent a viable threat to established players — especially in Southeastern markets like Florida, according to a report from the market research group Dunnhumby.
“Retailers everywhere should be examining their private brand, pricing, assortment, digital, and real estate strategies in response to Aldi’s move, to build protective moats for an uncertain future,” a report on Aldi from last summer said, according to GroceryDive.com.
