Major grocery chains Aldi and Target are expanding rapidly in the United States.
Aldi, which has its U.S. headquarters in Batavia, Illinois, U.S.A., said in a 7 March announcement it will add 800 stores nationwide by the end of 2028, via a combination of new openings and store conversions.
The USD 9 billion (EUR 8.2 billion) five-year expansion plan will “bring even more communities great products at the lowest possible prices during a time when consumers are more focused than ever on saving money,” the company said.
Aldi also successfully completed the acquisition of Southeastern Grocers, which includes its Winn-Dixie and Harveys Supermarket banners. This move, the company, expects, "will drive significant growth in the Southeast region over the next few years."
"With up to 40 percent savings on groceries, new customers are inspired to try us out, and existing customers keep coming back,” Aldi CEO Jason Hart said. "While price is important, we earn their loyalty by stocking our shelves with only the best products and offering a quicker, easier, and more enjoyable shopping experience.”
Regionally, Aldi said it plans to add nearly 330 stores across the U.S. Northeast and Midwest by the end of 2028. It will also grow its presence in the Western U.S. by adding more stores in Southern California and Phoenix, Arizona, as well as by entering new cities such as Las Vegas, Nevada.
Starting in the summer of 2024, Aldi will initiate a phased approach to the store-conversion process. In the Southeast, a significant number of Winn-Dixie and Harveys Supermarkets will be converted to the Aldi format over the next several years. The retailer anticipates that around 50 stores will begin the conversion process during the latter half of 2024, with the majority of these stores reopening as Aldi in 2025.
Still, Aldi intends for a “meaningful” number of Winn-Dixie and Harveys Supermarkets to continue to operate under their current banners.
“Both Aldi and Southeastern Grocers are committed to a seamless transition and continuing to deliver excellent value and customer service to their shoppers,” Aldi said.
Similarly, Minneapolis, Minnesota, U.S.A.-based Target said it would open 300 new stores over the next decade and will invest to enhance the vast majority of its nearly 2,000 already existing stores. Enhancements range from full remodels to upgrading fixtures and supporting same-day services.
Target also plans to continue enhancing its supply chain operations for “increased efficiency, speed, and capacity,” the company said. The efforts include next-day delivery through sortation centers, using artificial intelligence to drive improved inventory efficiency, and forecasting across its network.
Seeking to replicate the success of the Walmart+ program, Target has created Target Circle 360 – a paid membership that includes unlimited free same-day delivery for orders over USD 35 (EUR 32) in as little as an hour with no delivery fees or markups.
Membership also includes free two-day shipping, access to preferred shoppers who can personalize their experience, and access to Shipt Marketplace, which offers same-day delivery from more than 100 retailers nationwide.
This year, Target plans to launch and expand several of its own brands to offer a “wider range of options across categories, products, and prices,” the company said. The majority of the expansions apply to non-food products as well, such as health and beauty care items.
