Discount Grocer Aldi Plans to Open More Than 70 U.S. Stores in 2020
Aldi, a discount grocer, announced that it will open more than 70 new stores in the United States by the end of the year, CNBC reported. The expansion plan will bring Aldi to the Phoenix area for the first time, and will add more stores to states, including California, Kansas, Texas, and New York. In 2021, Aldi will also open a new regional headquarters and distribution center in Loxley, Alabama to help with growth along the Gulf Coast.
Currently Aldi U.S, which is owned by privately held German company, Aldi Sud, is in the middle of a five-year plan to become the third-largest grocer in the country by 2022, behind Walmart and Kroger, CNBC reported. To achieve this, Aldi will have to open 2,500 stores total and invest $5.3 billion to build new stores, remodel older locations and expand its food assortment. Aldi currently has 2,000 stores across 36 states, not including the 70 more it plans to open in 2020.
Total Retail's Take: The coronavirus pandemic has negatively impacted many retail businesses, but grocers are among the few that have seen their sales increase during this time. Americans are spending more on groceries than usual, the result of eating out less. Further working in Aldi's favor is its discount pricing, which is particularly attractive to consumers looking for deals during this time of economic uncertainty and high unemployment. While most retailers would need to re-evaluate and re-work a five-year plan they made prior to 2020, Aldi may actually reach its goal sooner than it anticipated. The company is also creating brand loyalty by looking out for consumers doing the COVID-19 pandemic. For example, Aldi lowered some of its prices during the pandemic, while some competitors did the opposite.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.