In the media

ALDI gets even more aggressive, plans 800 new stores

By Gary Guthrie

ConsumerAffairs

14 March 2024

PA Consulting growth strategy expert Jim Eckels is quoted in ConsumerAffairs discussing the US growth of grocery chain ALDI.

The article notes that ALDI has decided it’s full speed ahead and is planning to add 800 stores nationwide. The additions, to be rolled out over the next four years, are a mix of new build-outs and some as part of the company’s recent purchases of Winn-Dixie and Harveys Supermarkets in the Southeastern U.S.

The company says on top of more ALDIs within reach, the real bonus for consumers will be even more communities will find great products at the lowest possible prices during a time when consumers are more focused than ever on saving money.

Where the stores will be

The Northeast, Midwest, and West will benefit the most. The company plans to add nearly 330 stores in the Northeast and Midwest by the end of 2028. The West will see a lot of the newer locations, primarily in Southern California and Phoenix — and entering new cities, like Las Vegas.

The company’s timing is pretty good. Now that Family Dollar is padlocking nearly a thousand stores, those shoppers are going to need somewhere else to shop.

What is it that makes ALDI such a hot product?

The last few years have probably produced a lot of late hours for grocery stores trying to figure out what consumers want in today’s market. The winners were the budget grocery stores and Placer.ai, a research firm that tracks retail food traffic named ALDI, Grocery Outlet Bargain Market, and Market Basket as the three that made the most out of the situation.

ALDI – the Southwest Airlines of groceries?

In the early days, shopping at ALDI threw some consumers off with things like “renting” a shopping cart and the limited number of brand-name products. But ALDI slowly evolved from the weird kid on the block to the cool kid.

Or what Jim likens to being the grocery version of Southwest Airlines. “Both seek to offer their customers a good value and customer-centric experience that is enabled by efficient operations and friendly, motivated employees,” he told ConsumerAffairs.

“By simplifying their supply chain and offering a ‘no frills’ shopping experience, ALDI is able to keep their costs down and pass these savings on to the shopper. Thanks to ALDI’s curated assortment, shoppers appreciate that they can find what they are looking for quickly without being overwhelmed by choices in the aisle. ALDI shoppers also value the helpful and efficient service provided by the friendly ALDI staff.”

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