German Grocer Aiming to End up being Third-Largest Food Chain by Shop Count as Competing Lidl Preps First United States Stores
Aldi, Inc. today announced a significant increase of its currently aggressive U.S. growth strategy in the current volley among rival German discount grocers hoping to disrupt the domestic grocery market.
Aldi, which already runs 1,600 stores in 35 states and preserves its U.S. headquarters in Batavia, IL, revealed a $3.4 billion financial investment to grow its shop count to 2,500 by the end of 2022, constructing on a $1.6 billion program revealed earlier this year to open 400 more stores and redesign 1,300 stores by 2020.
The $5 billion in additional financial investment revealed this year comes as Aldi’s German competitor, Lidl, prepares to open its very first nine U.S. shops on Thursday in Virginia, North Carolina and South Carolina.
The strategy of both chains is to open smaller sized shops determining 20,000 to 25,000 square feet using grocery products at a lower rate point to challenge large, established food sellers like Wal-Mart Stores and Kroger Co., in addition to fast-growing specialized grocers like Whole Foods Markets. Aldi counterpart Lidl might open as lots of as 1,000 stores over the next 4 years.
Aldi declares its latest development effort will make it the third-largest grocery store by count in the U.S., serving a predicted 100 million clients each month. The growth will add 25,000 brand-new jobs in stores, storage facilities and offices, the business said in a release.
“We’re growing at a time when other retailers are having a hard time,” said Aldi CAO Jason Hart, adding the chain is among America’s fastest growing retailers. “We are offering our customers what they desire, which is more organic fruit and vegetables, antibiotic-free meats and fresh healthier alternatives throughout the shop, all at unrivaled rates up to 50% lower than conventional grocery stores.”