Aldi Inc., the German supermarket chain, announced on Sunday, June 11, its intentions of expanding its presence in the U.S. by increasing its store numbers. The company is planning on operating in 2,500 new locations by 2022. To do so, the grocery chain will be investing around $3.4 billion in an expansion.
Aldi Reveals Its Big Plans for the United States Market
Aldi or ALDI, as it is sometimes stylized, is the common brand used by two discount supermarket chains based in Germany. It currently has more than 10,000 stores in 18 countries. Presently, it is operating some 1,600 stores in the United States.
Earlier this year, the company presented its plans of adding 400 new locations by the end of next year. At the same time, the chain will be looking to remodel most of it current locations. It will reportedly be investing $1.6 billion for the remodeling of 1,300 of its stores.
Analysts estimate that this plan will be raising Aldi’s capital expenditure to around and even over $5 billion for the current year. The new announcement reveals an even bigger investment, as the grocery chain is planning on reaching a 2,500 stores target within the next five years. To do so, Aldi will be investing an additional $3.4 billion.
Both announcements come at a time of intense competition and significant changes in its targeted market. At the same time, another European brand and competitor revealed that it would be expanding its operations and trying to bring them to the United States.
Lidl, also a German company, will be opening its first 100 stores in the U.S. this week. These will start being operational beginning with June 15. In a May announcement, Lidl also stated that its stores would be offering very low prices, even up to 50 percent lowers than its rivals.
Wal-Mart, who is the biggest U.S. grocery chain, is also currently testing a lower prices regime in 11 states.
Thanks to its latest store base expansion, Aldi is set to become the third-largest grocery chain store operator in the United States. This will also be creating an additional 25,000 workplaces.
“As we continue to expand and grow, our purchasing power continues to increase and allows us to bring products at better prices for consumers,” stated Scot Patton, the Aldi Head of Corporate Buying, in an interview.
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