Aldi plans to open more than 180 stores in the U.S. this year, including in traditional locations of competing supermarkets and big-box stores, as Americans across all incomes look to trim their grocery budgets.
The German grocer’s latest growth plans follow an already aggressive expansion over the past decade. Aldi, known for its low prices, small stores and emphasis on private brands, is the third-largest grocer in the country by number of stores, coming in second place. walmart and kroger. And last year, Aldi opened about 200 stores, its biggest expansion since opening its first U.S. store in Iowa in 1976. As of December 31st, it has 2,614 stores in the United States.
Aldi announced it is opening more stores, revamping its website and entering Maine, its 40th state, this year. The company also plans to add new distribution centers in Florida, Arizona and Colorado over the next five years.
The U.S. grocery industry has long been a fragmented industry, with operations divided among regional grocers, specialty suppliers, large supermarket operators, big-box stores, and membership clubs. But Aldi’s growth is indicative of the increasing competition traditional players face as discounters lure shoppers and reap more profits on their weekly grocery shopping sprees.
“Consumers aren’t really looking for luxury stores or having tens of thousands of products to choose from right now,” said Atty McGrath, CEO of Aldi US. “They’re really smart shoppers. They know that private label can save them money without sacrificing quality.”
He added: “More and more people are really protecting their resources, whether it’s their wallet or their time.”
Aldi grocery store in Washington DC, May 2, 2025 photo.
Kevin Dietch Getty Images
A recent survey of grocery shoppers by consulting firm AlixPartners found that the percentage of major shopper groups saying they spend most of their grocery budget on traditional grocery channels has declined compared to 2024. The survey was conducted in September and included 1,635 people.
The decline was more pronounced among wealthier households and younger shoppers, with a 7 percentage point year-over-year drop for households with annual incomes of $100,000 or more, and a 6-percentage point year-over-year drop for shoppers between the ages of 25 and 34, the study found.
Matthew Hamory, co-leader of AlixPartners’ global grocery practice, said that, in particular, large supermarket chain operators, such as: kroger, albertsons and Stop & Shop’s parent company Ahold Delhaize It has lost its status as a discounter like Aldi. walmart and costco Produce, meat, and other staple foods at lower prices.
“American customers have learned that going to a discount store doesn’t mean they’re going to buy crappy stuff for cheap,” he said. “You’re buying high-quality fresh produce, high-quality private labels. They’re in stock. They’re local to you. And they’re convenient.”
Additionally, U.S. shoppers are becoming more accustomed to buying private labels, he said, thanks to the success of major companies like Costco.
Despite rapid growth, Aldi’s share of the U.S. grocery market remains small. Wal-Mart is the nation’s largest grocer with a 21% market share, with Kroger, Costco, Albertsons and Publix rounding out the top five, according to market researcher Numerator. According to Numerator data through early October 2025, Aldi’s U.S. market share is 2.8%.
Aldi, a privately held company, does not release financial results, but market research shows its stores are attracting more shoppers. Store foot traffic increased by more than 50% from 2019 to 2024, according to Placer.ai (an analytics company that uses anonymous data from mobile devices to estimate store visits) and commercial real estate company JLL.
According to Placer.ai, Aldi’s store traffic growth outpaced both the overall grocery sector and its major competitors in 2025. In 2025, store visits increased 8% from the previous year, with Costco increasing 5.9%, Albertsons increasing 1.6%, Kroger increasing 0.8%, and Walmart increasing 0.5%. Overall grocery store visits increased by 3.1% compared to the previous year.
Aldi grocery store, Washington DC, USA, May 2, 2025
Kevin Dietch Getty Images News | Getty Images
Aldi’s competitors’ results reflect their challenges. Last week, Albertsons gave a weak full-year forecast, with CEO Susan Morris saying on an earnings call that even high-income shoppers are “becoming more conscious of price and value.”
Kroger also acknowledges that competitive pressures are increasing. At an earnings conference in early December, Kroger interim CEO Ron Sargent emphasized that the company is striving to “strengthen its competitiveness” by accelerating capital investment in new stores and lowering prices. He did not name Aldi or other discounters.
He said on the conference call that the retail environment has always been “very competitive,” but “especially today when consumers are looking for great value.”
Other value-oriented grocery stores are also growing. Lidl, another private label-focused discounter, will also relaunch in the U.S. in 2024, with more than 190 stores in nine East Coast states.
Walmart is talking about adding more fashion-forward, trend-driven brands to attract more affluent shoppers from households with annual incomes of more than $100,000. One of them, Bettergoods, is a chef-driven private label grocery line launched in 2024 with most items priced under $5.
June 27, 2024 at Aldi Supermarket in Alhambra, California.
Eric Thayer | Bloomberg | Getty Images
Stores are smaller and there are fewer items.
Aldi stands out from its competitors in several important ways. The stores are small, have a narrow selection of products, and focus on their own brands. More than 90 percent of its inventory and nearly as much of its total sales come from private-label products, a sharp departure from other grocers and major retailers that typically rely on national brands or well-known products like Heinz ketchup or General Mills Cheerios.
Nearly every aspect of the company’s stores and strategy is designed with efficiency in mind, with multiple barcodes on each item to speed checkout and requiring customers to bring their own bag or pay for it themselves. It is also famous for requiring customers to deposit a quarter of their purchases in their shopping carts, which will be refunded upon return. Some products are stored on shelves in cardboard boxes or wooden pallets.
Scott Patton, chief commercial officer of Aldi US, said the smaller stores and carefully selected products allow shoppers to save time and avoid the hassle of browsing through vast aisles of different types of ketchup and other products.
The Aldi store will be approximately 10,000 square feet. That’s just a fraction of the average size of a Walmart supercenter, which is 178,000 square feet, according to Walmart’s annual report.
Still, Patton said Aldi’s small selection includes creative flavors and trendy items, such as collagen-infused drink mixes, avocado oil and freeze-dried banana snacks. It will also offer a fun “treasure hunt” experience.
Aldi shoppers can browse ‘Aldi Finds’, a combination of products available for a limited time, in the center of the store. For example, earlier this month, an Aldi store in New York City’s Harlem neighborhood was selling glass kettles for $19.99, air fryers for $39.99 and Valentine’s Day-themed plush throw blankets for $7.99. Items also included well-known food brands, such as a 20-pack of Pepperidge Farm Goldfish Crackers and a bottle of Hidden Valley Ranch salad dressing.
But Aldi’s strategy of emphasizing private labels and a rotating selection of random items could have a downside, as it may not carry every product shoppers have on their list.
“We may have to shop at a different store, but that’s actually fine with us,” Patton said. “What we want from our customers is to buy Aldi first.”
The company also faces lawsuits over its packaging. Chips Ahoy and Oreo parent company Mondelez sued Aldi last year, accusing the discounter of copying its competitors’ packaging to confuse shoppers. Some of the boxes for store brand products use colors and fonts that are nearly identical to those of competing national brand products.
Last year, Aldi revamped its store packaging, which Patton said was “unrelated to any litigation or infringement claims.”
Almost every aspect of an Aldi store is designed with efficiency in mind. Some products sold in stores are still packaged in cardboard boxes or wooden pallets.
Melissa Repko | CNBC
aldi supporter
For some loyal customers, Aldi’s no-frills approach and emphasis on private labels are appealing. Emily Curtis, an actor and barista who lives in New York City’s Washington Heights neighborhood, goes to Aldi every week to buy groceries. She and her husband battle traffic for at least 30 minutes each way on the drive to and from Aldi’s Harlem store.
Curtis, 27, said she grew up in a frugal household where it was common to choose off-brand cereal instead of talisman. She started shopping at Aldi while attending the University of Alabama.
“When I was eating beans and rice at school, it was beans and rice from Aldi,” she said.
After moving to Georgia and then New York, she continued to visit Aldi regularly. When she and her husband first moved to New York City, they realized they could save money by shopping at the Aldi across town, even with Instacart shipping fees, rather than shopping at local grocery stores like D’Agostino’s and Gristedes.
“Price is the biggest attraction and that’s why we do everything we can,” she said.
But Ms Curtis said she also liked the rotating items she found in Aldi’s center aisle. Her closet even has Aldi sweatpants and an Aldi-themed Christmas sweater. She stores her kitchen utensils in Aldi holders. And every year, she stocks up on limited-time pumpkin tomato marinara sauce.
“For better or worse, my undying dedication to the brand has become a character trait of mine.”
—CNBC’s Natalie Rice contributed to this report.
