Aldi’s 3,000 Store Plan Targets Grocery Prices

More than 3,000 U.S. stores by the end of 2028. That is the target set by Aldi, the German discount grocer that has become the fastest-growing chain in America. Bloomberg reported the plan, which would place Aldi behind only Walmart in total locations.

The company generated about $29 billion in U.S. sales in 2024. That figure exceeds the revenue of Trader Joe’s. Aldi’s low prices are not just a marketing claim. Food reporter Deena Shanker spent months comparing prices and found Aldi either matched Walmart or came in slightly cheaper.

Competitors have responded to the pressure. Wegmans and Kroger have announced defensive price cuts. An analysis from late 2023 looked at Lidl, a similar German grocer with fewer U.S. stores. It found that other grocery chains cut their markups by roughly 7 percent in areas where a Lidl opened.

Aldi differs from other low-cost retailers like Walmart and Costco. Those chains rely on massive warehouses and purchasing power to pay suppliers less. Aldi relies on strict cost-cutting measures. The stores play no music to save on licensing fees and speakers. Staff stock shelves using products still in their shipping boxes to reduce labor.

The chain’s main advantage comes from private label products. More than 80 percent of items sold are store brands. These include look-alikes for popular items such as Oreos and Ritz crackers. Aldi sells these as Benton’s Chocolate Sandwich Cookies with Vanilla Filling and Savoritz Golden Round crackers. This strategy avoids paying brand markups before adding the store’s own profit.

A second tactic is a limited product selection. The Albrecht brothers started the business in 1946 with little space and money. They stocked only essentials and offered one version of each item. This approach allows for bulk buying, less spoilage, and lower rent costs. Shoppers sometimes must visit another store for niche items like white pepper.

To keep customers engaged, Aldi adds rotating items to its middle aisle. These include toys, German spätzle, and advent calendars filled with 24 festive cheeses. The chain has also expanded its offerings to attract higher-income shoppers with items like premium wine. Some customers now line up for new store openings, a level of enthusiasm previously reserved for tech product releases.