Reputed German low-cost grocery chain, Aldi is planning to expand its U.S. market share, by launching more stores in the country over the coming five years. Indeed, this move will allow Aldi to hold an upper hand over the U.S. grocery market, creating more competition for traditional retail stores like Walmart, and the organic food chain, Whole Foods. The company would reportedly invest USD 3.4 billion to inflate its U.S. store base to 2,500 by the end of 2022. As per the present tally, this global online grocery market player currently operates 1,600 stores in U.S. ground, and earlier this year, the retailer firm had already announced its plan to invest USD 1.6 billion in remodeling 1,300 of these stores.
The overall capital investment of Aldi in the U.S. grocery market which sums up to almost USD 5 billion so far, is expected to bring an intense competition in the industry. Walmart, which is presently the largest U.S. grocery market participant, with a market coverage of 17% of the overall volume, also plans to invest USD 3 billion to USD 5 billion in the remodeled structure of the market to maintain its position. Another German discount chain rival, Lidl, is also in the talks to open 100 stores in the U.S. in June, this year. The company claimed that it would price products almost up to 50% lower than its contemporaries.
Aldi mainly focuses on private-label groceries which account for only 20% of supermarket product lines but generate almost 80% of the sales. The latest announcement of the store expansion will open up nearly 25,000 job opportunities in U.S. and will make Aldi the third largest discount grocery chain of the country after Walmart and Kroger Co. The report also suggests that Aldi’s 2,500 stores will be almost equal to a significant chunk of Walmart’s U.S. outlets.
Amidst a turbulent retail landscape, Aldi is increasing its penetration in the market by accelerating the development of new stores in the country. The company has already depicted a progress in terms of its product selection which include gluten free options, fresh foods, and award-winning products. The huge capital investment in the U.S. market is quite evidently portraying Aldi’s plan of diversifying its offering including cheese, specialty wines, fresh and sustainable seafoods, and other organic items. With this growth prospect, it is yet to be seen how Adli disrupts the U.S. grocery industry’s structure in the coming time frame by providing the customers with a smarter way to shop.
Satarupa develops content for Market Size Forecasters. An electrical engineer by qualification, she worked for two years in the electrical domain before switching her professional genre. Following her childhood passion, she opted for a career in writing and now pens down articles pertaining to marke...