Aldi is set to become the third-largest grocery chain in the United States after they announced a $3.4 billion expansion on Monday. The German company will open 900 new stores in the US over the next five years, which will create around 25,000 new jobs and serve 100 million customers per month.
Aldi currently operates 1,600 stores across 35 states. Earlier this year, Aldi said it would invest $1.6 billion to remodel 1,300 existing stores with a new design that features softer lighting, wider aisles and electronic displays on the wall.
"We pioneered a grocery model built around value, convenience, quality, and selection, and now Aldi is one of America's favorite and fastest-growing retailers," US CEO Jason Hart said in a statement.
"We're growing at a time when other retailers are struggling. We are giving our customers what they want, which is more organic produce, antibiotic-free meats, and fresh healthier options across the store, all at unmatched prices up to 50 percent lower than traditional grocery stores."
The investment raises Aldi's capital expenditure in 2017 to at least $5 billion. The grocery market is highly competitive at present, with German rival Lidl opening the first of 100 new stores in the United States this week. Aldi’s items are about 30% cheaper on average than the same products at Walmart. However, Lidl is reportedly planning to price products up to 50% lower than rivals Walmart and Kruger.
According to the The Future of Food Retailing market report, the U.S. food retailing business has never been more competitive. It says “the expansion of discount/limited-assortment chains, including Aldi and Lidl, it appears value grocery will be at the epicenter of some of the most aggressive competition the grocery industry has seen since the Walmart-driven supercenter invasion of the 1990s.”
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