Aldi expansion targets 3,000 U.S. stores by 2028

American shoppers face higher grocery costs, but a new wave of competition from German discounters is forcing prices down. Aldi Süd, the largest division of the German company, plans to operate more than 3,000 locations in the United States by the end of 2028. This expansion would place Aldi second only to Walmart in total store count, according to data cited by Bloomberg.

The growth strategy relies on a limited product selection that cuts costs for the retailer and passes savings to customers. Aldi stocks fewer items than traditional supermarkets, often offering only one brand and size per category. This approach reduces shelf space, storage requirements, and spoilage. By buying in bulk and minimizing variety, the company avoids the high overhead associated with stocking niche products that sit on shelves for extended periods.

Private label products account for more than 80 percent of items sold on Aldi shelves. These store brands, such as Benton’s chocolate sandwich cookies, compete directly with national brands like Oreos at a lower price point. Because Aldi manufactures or sources these goods directly, it bypasses the markups added by major distributors and brand owners. Food reporter Deena Shanker noted in a recent analysis that her comparison shopping showed Aldi prices matched or undercut Walmart on many items.

The expansion exerts pressure on established grocery chains to adjust their pricing strategies. Kroger and Wegmans have announced defensive price reductions in response to the competitive threat. An analysis published in late 2023 found that grocery chains reduced markups by approximately 7 percent in areas where Lidl, another German discounter, opened stores. This dynamic suggests that Aldi’s presence forces competitors to lower prices to retain customers, even as overall food costs rise.

Operational efficiency drives the low price point. Stores do not play music to save on licensing fees, and staff often place products on shelves in their original shipping boxes to reduce labor costs. The company maintains a small footprint compared to supercenters, which lowers rent and real estate expenses. These cost-saving measures allow Aldi to offer competitive prices on essentials like rice, eggs, and produce without the expansive square footage required by traditional retailers.

Aldi’s model also includes a rotating selection of unique items, such as German spätzle and seasonal advent calendars containing 24 different cheeses. This strategy attracts a diverse customer base that seeks both everyday savings and occasional novelty. The company has also expanded its premium offerings, including higher-quality wine and specific apple varieties, to appeal to higher-income shoppers while maintaining its core discount reputation.

The company’s current growth trajectory builds on momentum gained during the Great Recession and the recent inflationary period. Aldi was founded in 1946 in post-war Germany, and its business model has remained relatively consistent for 80 years. The chain’s success in the American market demonstrates that established retail strategies can still disrupt mature industries without relying on new technology or complex digital platforms.

By the end of 2028, Aldi’s U.S. network will include more than 3,000 stores. The company generated approximately $29 billion in U.S. sales in 2024, surpassing the revenue of Trader Joe’s. This financial performance underscores the scale of its impact on the domestic grocery market and the extent of its challenge to larger competitors.