Aldi, the German brand of low-cost supermarkets, is continuing its expansion into the U.S. market. The company announced that around 70 more Aldi stores would open in the U.S. by the end of 2020. It was also reported that the total number of Aldi outlets in the country had already exceeded 20,000 by the end of the year. The company is on its way to becoming the third-largest U.S. grocery store chain, after Walmart and Kroger.
As part of the expansion, Aldi will open its first supermarkets in the previously unreached states of Arizona and Louisiana. Aldi will also open a new distribution center and regional headquarters in Locksley, Alabama, which will serve as a hub for the opening of dozens of new stores.
At a time when retailers are struggling with the effects of the pandemic and large chains are closing in dozens, if not hundreds of stores around the world, Aldi seems to be undergoing a real upswing and is planning a new wave of expansion into the U.S. market.
One of the main reasons the chain’s popularity is rising amid a general slowdown or even decline in retail sales is that Aldi is positioning itself as a discounter network. Buyers in challenging times prefer low prices and are willing to sacrifice a variety of choices and value-added services. Distinctive features of Aldi chain are a limited number of own brands, which focus on the essential products and everyday items. Also, the grocery chain is famous for low prices, which can be kept thanks to the simplified design of the trade areas and the small number of staff.
