Aldi to Open 3,000 U.S. Stores by 2028, Outpacing All but Walmart

Aldi, the German discount grocery chain, plans to operate more than 3,000 locations in the United States by the end of 2028. This expansion would make it the second-largest grocery chain in the country, behind only Walmart. The company generated approximately $29 billion in U.S. sales in 2024, a figure that exceeds the revenue of Trader Joe's.

Aldi's growth strategy relies on a model established when the Albrecht brothers took over their family store in 1946. The chain keeps store sizes small and product selections limited to essential items. By stocking only one brand or size of a product, Aldi buys in bulk to lower costs and reduces spoilage. More than 80 percent of items on Aldi shelves are private-label products. These store brands, such as Benton's chocolate sandwich cookies, cost less because the company does not pay for national brand markups.

The efficiency model drives the low prices that attract customers. Stores feature minimal amenities to save on labor and overhead costs. For example, Aldi does not play background music to avoid licensing fees, and staff often place products on shelves in their original cardboard boxes. This approach keeps operational expenses low, allowing the chain to offer competitive pricing even during inflationary periods. Food reporter Deena Shanker noted that after months of comparison shopping, Aldi either matched Walmart prices or charged slightly less.

Competitors are responding to the pressure from Aldi's expansion. Grocers such as Wegmans and Kroger have announced defensive price reductions to retain customers. A late 2023 analysis of Lidl, another German grocer with a similar business model, found that existing grocery chains reduced their markups by approximately 7 percent in areas where Lidl stores opened. Aldi intentionally locates its stores near these competitors, allowing shoppers to easily visit a nearby supermarket for specific items that Aldi does not stock.

The chain has also expanded its offerings to appeal to a wider range of income levels. While known for bargain basics, Aldi now stocks specific premium items, such as honey crisp apples and select wines. The stores feature rotating special buys, including toys and seasonal goods, which create a distinct shopping experience for customers. This strategy has helped the brand maintain popularity during economic downturns and current inflationary trends.

Aldi was founded 80 years ago in post-war Germany, yet its business model continues to disrupt the American grocery market. The company does not rely on new technology to lower costs but instead uses a streamlined inventory system developed decades ago. This approach has made it the fastest-growing grocery chain in America, challenging long-established competitors to rethink their pricing structures and store layouts.

The expansion plans signal a continued shift in the local grocery landscape. As Aldi opens new stores, it aims to capture market share from traditional supermarkets. The chain's presence puts direct pressure on local retailers to maintain low prices for everyday essentials. This dynamic is expected to influence grocery pricing across the region as the company moves toward its 2028 goal.