Aldi Targets 3,000 U.S. Stores by 2028

Aldi is positioning itself as the second-largest grocery chain in the United States by expanding its store count to more than 3,000 locations by the end of 2028. Bloomberg reported that this growth strategy would place the German discount grocer behind only Walmart. In 2024, Aldi generated approximately $29 billion in U.S. sales, surpassing the revenue of Trader Joe's.

The company’s pricing strategy has drawn attention from competitors and analysts. Deena Shanker, a food reporter who conducted a multi-month price comparison, found that Aldi frequently matched or undercut Walmart on costs. In response, major chains such as Wegmans and Kroger have implemented defensive price reductions. A late 2023 analysis indicated that grocery chains in areas where the similar German retailer Lidl opened stores cut their markups by roughly 7 percent.

Aldi’s model differs from traditional mass-market retailers like Walmart and Costco, which rely on large warehouse footprints and high-volume purchasing power to suppress supplier costs. Founded in 1946, Aldi operates with a lean structure that minimizes overhead. Stores do not play background music to save on licensing fees, and employees stock shelves directly from shipping boxes to reduce labor hours. This efficiency allows the chain to maintain low prices even as consumer spending on food has increased relative to income since 2019.

The core of Aldi’s competitive advantage lies in its private label products and limited product assortment. More than 80 percent of items sold are store brands, including direct competitors to national products such as Benton's Chocolate Sandwich Cookies and Savoritz Golden Round crackers. By manufacturing these goods, Aldi avoids brand markups. The chain stocks only one version of each essential item, a practice initiated by the Albrecht brothers in 1946 to manage limited space and capital. This approach enables bulk purchasing and reduces spoilage and rent costs.

To attract a wider customer base, Aldi has introduced rotating novelty items in its middle aisles, such as toys and seasonal cheeses. The company also offers premium options, including specific apple varieties and wine, to appeal to higher-income shoppers. The store layout is designed for speed, with products arranged to allow quick shopping trips. Some customers form lines at new store openings, mimicking the demand seen for consumer electronics releases.

Aldi deliberately locates its stores near other grocers, encouraging shoppers to complete larger lists at nearby competitors. The company focuses on the specific segments of grocery retail where it can operate at the lowest cost. This unbundling strategy allows Aldi to capture market share without the infrastructure required for full-service superstores.