Aldi Targets 3,000 US Stores by 2028

Aldi intends to operate more than 3,000 stores in the United States by the end of 2028. According to data cited by Bloomberg, this expansion would make the German company the second-largest grocery chain in the country, trailing only Walmart. In 2024, Aldi generated approximately $29 billion in U.S. sales, a figure that exceeds the revenue of Trader Joe's.

The company's growth has placed direct pressure on established American grocers. Food reporter Deena Shanker stated that after months of comparison shopping, she found Aldi prices to be equal to or slightly lower than Walmart. In response, major chains including Wegmans and Kroger have announced defensive price reductions. An analysis published in late 2023 examined Lidl, a German competitor with a similar business model, and found that grocery chains in areas near new Lidl stores reduced their markups by about 7 percent.

Aldi maintains these low prices through two specific operational strategies. First, more than 80 percent of the products on its shelves are private-label items. These goods, which often resemble major brands like Oreos or Ritz crackers, are manufactured by Aldi or its partners, allowing the company to avoid paying for name-brand markups. Second, the store carries a limited selection of items. By stocking only one brand per product category, Aldi can buy in bulk, reduce spoilage, and minimize the costs associated with storage and shelf space.

The retailer also cuts overhead expenses to keep prices down. Stores do not play background music to avoid licensing fees. Employees stock shelves directly from cardboard boxes to reduce labor costs. This efficiency-focused approach allows Aldi to compete with large retailers like Costco and Walmart, which rely on massive scale and huge store footprints to keep costs low.

The company was founded in 1946 by the Albrecht brothers in post-war Germany. They started with a small store and limited funds, which led to a business model based on essential goods and high turnover. This strategy has proven effective during economic downturns, such as the Great Recession, and continues to attract customers in the current inflationary environment.

Aldi is also adapting its merchandise to appeal to a wider range of shoppers. The chain has expanded its offerings to include specific premium items, such as honeycrisp apples and higher-end wines. Stores feature rotating special buys that include toys and seasonal products. This mix of bargain prices and curated selections has created a loyal customer base that treats shopping at Aldi as a hunt for value rather than a chore.