Aldi Growth Accelerates As German Discounter Opens Across The U.S.

Aldi has come to the masses and the masses, it would seem, love it.

Yes, discount grocer Aldi is set to open 120 new stores across the U.S. this year as the limited assortment retailer continues its unrelenting expansion.

By year end the German grocer will operate from more than 2,400 locations nationwide and 35 stores of those planned stores have already opened in the first quarter of 2023.

The coast-to-coast growth will include the fast expanding Southeast region where, February past, Aldi opened its 26^th regional headquarters and distribution center, in Loxley, Al.

The 564,000-sq-ft facility is equipped to service around 100 stores across Louisiana, Alabama, Mississippi and the Florida Panhandle, which will give Aldi the opportunity to reach more than 8 million customers.

New openings included the unserved communities of Glendale, Az., and El Cajon, Ca. and Aldi will also open stores in two new markets this year, with stores planned for the Louisiana cities of Baton Rouge and New Orleans.

Driving much of this growth is a loyal and enthusiastic customer base. A recent report from Los Altos, Ca.-based Placer.ai revealed that Aldi saw some of the greatest gains in foot traffic during the final quarter of 2022, with store traffic increase up 6.8% year-on-year and nearly a third up over the past three years, mainly thanks to the brand’s ongoing U.S. store expansion.

Aldi Builds on Stellar 2022

This year’s aggressive plans build on a stand-out 2022, during which Aldi opened and remodeled 139 stores. The company said that it welcomed approximately 9.4 million new customers and drove double-digit growth year-on-year.

“While inflation is undoubtedly driving unprecedented demand for affordable groceries, we know that once customers experience the Aldi difference, they keep shopping with us, even when the economy improves. “Our growth is led by our customers, and they continue to want more Aldi locations coast-to-coast,” Aldi U.S. CEO Jason Hart said.

The retailer has also been establishing its omnichannel credentials.

Earlier this year, Aldi launched an on-demand delivery service in a tie-up with DoorDash at nearly all of its store locations across 38 states. Customers can place grocery orders from their local Aldi store via the DoorDash app or website.

In fact Aldi is no stranger to offering online delivery and curbside pickup services. In Fall 2022 the retailer established a partnership with digital commerce platform Spryker Systems to develop a new online food and grocery shopping service for the U.S. market, offering grocery delivery or curbside pickup for its U.S. shoppers.

Aldi Expansion Back On Track

Aldi reached the 2,000 store milestone in July 2021, though the company had expected to achieve this landmark 18 months earlier.

Despite ongoing investment, Aldi’s store growth trajectory has not quite lived up to its original ambitions, and while the pandemic saw it soar in popularity, it also impacted store growth.

The 2,000-location goal had been set back in December 2013, when Aldi had just 1,269 stores. In early 2017, when a $1.6 billion remodeling and store-expansion program involving 1,300 locations was announced, Aldi held to that target but by mid-year it had shifted to increased its goal to 2,500 stores, extending the timeline to the end of 2022.

It might not quite have got here as quickly as planned but right now the path to 2,500 sites is on the horizon and Aldi’s shoppers show no lack of appetite for new stores.