Aldi Plans 3,000 US Stores by 2028 as Rivals Trim Prices

Aldi, the German grocery chain, plans to operate more than 3,000 stores in the United States by the end of 2028, a figure that would trail only Walmart among American grocers, according to Bloomberg. The company generated roughly $29 billion in U.S. sales in 2024, exceeding Trader Joe's.

Aldi's pricing has drawn responses from rivals. Wegmans and Kroger have announced price reductions of their own. An analysis published in late 2023 found that grocery chains operating near Lidl stores, another German discount grocer with a similar model, cut their markups by about 7 percent in areas where Lidl opened.

Food reporter Deena Shanker said that over many months of comparison shopping, Aldi either matched Walmart on price or came in slightly cheaper. Walmart and Costco build their pricing on large stores, large warehouses, and the volume purchasing those permit. Aldi, founded 80 years ago in post-war Germany, reaches comparable prices through a different route.

Store operations carry low overhead. Aldi plays no music in stores, avoiding both speakers and music licensing fees. Workers leave produce, bread, and other goods in the shipping cartons on the shelf rather than unpacking them for display, which cuts labor time. The spartan look of the stores is a result of those choices.

Aldi stocks private-label products that account for more than 80 percent of what appears on its shelves. Shoppers find Benton's Chocolate Sandwich Cookies with Vanilla Filling and Savoritz Golden Round crackers, both made for Aldi, so the chain does not pay a brand-name markup before adding its own. The Albrecht brothers, who took over the family grocery in 1946 with little money for inventory, built the second part of the approach: carry one option for essentials like rice and eggs rather than a range of brands, sizes, and varieties. Buying a single item in volume costs less, and a short list of products means less spoilage, less shelf space, less storage, and lower rent. Stores stayed small as the brothers grew wealthy.

Aldi's low prices drew heavy traffic during the Great Recession and during the current period of food inflation. The chain also sells rotating non-grocery items in its middle aisle, including toys, German spätzle, and advent calendars holding 24 cheeses, and it stocks Honeycrisp apples and wines priced above its basic offerings. Aldi places stores close to competing grocers so shoppers can finish a list elsewhere after buying what Aldi carries cheaply.

Grocers have cut their markups in areas where Lidl stores opened, and Aldi's expansion is pushing comparable pressure across the grocery business even as food costs at restaurants and other stores continue to rise.