Should Aldi’s growing store count and digital progress keep rivals up at night?
Aldi has been growing its store count, supply chain infrastructure and digital capability in recent years and continues on that path. The limited assortment discount grocer with an own brands emphasis announced this week that it plans to open another 100 stores in 2021 with particular focus on the states of Arizona, California and Florida along with the Northeast region. The chain with its small box format expects to be the third largest grocery operator by store count by the end of the year.
Aldi also announced that it will roll out curbside pickup at 500 more stores by the end of the year, bringing its total to more than 1,200 locations. The chain will also continue to offer grocery delivery via Instacart in almost all of its 2,000+ stores across 37, soon to be 38, states. The retailer plans to move into Louisiana for the first time this year.
Aldi broke ground on its 26th regional headquarters and distribution center in Loxley, AL, as it continues to make a push throughout the Gulf Coast states. The 564,000-square-foot facility, its sixth distribution center in the region, will supply up to 100 stores in Alabama, Southern Georgia, Mississippi, the Florida Panhandle and Louisiana.
“Our commitment to our shoppers, new and existing, is the same — we will do everything in our power to offer the lowest possible prices every day — and we look forward to supporting more communities across the country with amazing Aldi products at a value that can’t be matched,” said Jason Hart, CEO, Aldi U.S., in a statement.
While price has always been central to its brand image, Aldi has remained equally committed to product quality in its own brand range, all of which come with a no questions asked satisfaction guarantee. The grocer has expanded its selection of organics and made fresh foods a central focus on its store presentation. Aldi has remodeled and opened new stores with modern designs, wider aisles, open ceilings, natural lighting and digital signage to promote its house brands.
The grocery has also tinkered with store size, building its new stores typically about 20 percent larger than in the past. A new location in Philadelphia last year is 25,000 square feet with a produce section about 40 percent larger than in a typical 16,000-square-foot Aldi.
- ALDI Continues Nationwide Expansion With 100 New Stores in 2021 – Aldi U.S.
- Are Aldi’s upscale makeovers necessary? – RetailWire
- Is a new store concept the start of something big(ger) for Aldi? – RetailWire
DISCUSSION QUESTIONS: Are you surprised at Aldi’s apparent success at using online ordering and curbside pickup and delivery to grow its business? Do you see Aldi becoming a more troublesome competitor to large big box grocers than in the past?