Budget grocery chain ALDI plans to opens hundreds of U.S. stores amid recession fears

ALDI Aggressively Expands, Adding Hundreds of Stores and Converting Winn-Dixie Locations

Budget-conscious shoppers have reason to celebrate: ALDI is significantly increasing its footprint across the United States. The popular supermarket chain is opening 225 new locations this year, marking its largest single-year expansion in its nearly 50-year history in the U.S.

This aggressive growth comes as many American families continue to grapple with the financial strain of rising costs. ALDI states that shoppers can save up to 36% on an average shopping trip, making it an increasingly attractive option.

Strategic Growth and Acquisitions Fuel ALDI’s Expansion

ALDI’s expansion isn’t just about new construction. A key part of its five-year growth strategy involves the conversion of approximately 170 Winn-Dixie and Harveys Supermarket locations into ALDI stores, primarily focusing on the Southeast.

This move follows ALDI’s 2023 acquisition of Southeastern Grocers, the parent company of Winn-Dixie and Harveys. The overall plan, announced last year, includes adding 800 new locations nationwide by the end of 2028, representing a $9 billion investment.

Divestiture of Non-Converting Stores

To streamline its conversion efforts, ALDI has divested approximately 170 Winn-Dixie and Harveys Supermarket locations that will not be converted. These stores have been sold to a consortium that includes C&S Wholesale Grocers, Southeastern Grocers senior leadership, and private investors.

This transaction allows ALDI to maintain a dedicated focus on converting and integrating stores in the Southeast while simultaneously pushing forward with broader national growth plans.

ALDI’s Growing Popularity

ALDI’s commitment to low prices has resonated with consumers. The company reports that over 25% of American households now shop at ALDI, double the number from just six years ago.

This surge in customer base reflects a broader trend of shoppers seeking value and affordability in their grocery purchases. ALDI has a focus on helping families stretch budgets.

An Aldi supermarket in Alhambra, California. (Eric Thayer/Bloomberg via Getty Images)

Future Expansion Plans

ALDI anticipates that approximately 100 of the converted Winn-Dixie and Harveys Supermarket locations will reopen as ALDI stores by the end of 2025.

Besides the Southeastern focus, ALDI also plans to add new stores in the Northeast and Midwest. Growth is also planned in Southern California, Arizona, and into new areas, such as Las Vegas, Nevada.

Leadership’s Confidence in the Transition

ALDI CEO Jason Hart expressed confidence in the seamless integration of the acquired grocery chains. He emphasized that a “meaningful number” of Winn-Dixie and Harveys stores will continue to operate under their original banners.

Exterior view of an Aldi grocery store. (Photo by Paul Weaver/SOPA Images/LightRocket via Getty Images)

The Bottom Line

ALDI’s rapid expansion strategy proves out its dedication to deliver value. The increased number of locations and ongoing store changes indicate a strong push to make budget-friendly shopping available to more Americans, particularly those that are finding it tough to afford all their required groceries at the checkout.