In making the case for its supermarket mega-merger with Albertsons, Kroger often brings up the names Walmart, Amazon and Costco as large-scale competitors that are rattling the industry’s established order.

It should probably now add Aldi to that list after the discounter announced yesterday its plan to add 800 stores through a combination of new openings and store conversions by the end of 2028 — a move that would increase its footprint by roughly one third. 

Aldi was already growing rapidly, targeting 100-plus store growth per year over the past few years. Its accelerating pace shows that the company’s focus on low prices, house brands and a small-scale, low-frills shopping experience is resonating with shoppers. 

More to the point for industry readers, Aldi is successfully snatching market share from competing grocers — namely, the traditional operators like Kroger and Albertsons that are finding out that one-stop food shopping is no longer a competitive moat.

Like Walmart, Aldi has been particularly successful during a recent period of high inflation. But its staying power comes from the fact that it has gradually eliminated the tradeoffs that many consumers feel they have to make when shopping at a discount grocer. You can find natural and organic products, a selection of home goods, personal care and floral selections in its stores, most of which have been remodeled in the past few years with enhanced lighting, better floor plans and more inviting signage and merchandising.

Not content to just compete with supermarket chains, Aldi went out last summer and bought two of them. In addition to converting those valuable sites formerly owned by Southeastern Grocers, Aldi has an opportunity to learn more about its traditional grocery competition — how it thinks, where it’s weak and where it’s successful. 

Aldi is not only expanding — it’s evolving. Traditional grocers will have to do the same if they want to survive the growing might of discount retailers.

In case you missed it

BJ’s to enter Kentucky

Everyone is heading to the Bluegrass State these days, it seems. The club retailer plans to set up shop in its 21st state with a new store in Louisville, Kentucky, the retailer announced Thursday. The Louisville club is slated to open in early 2025 and follows the company’s expansion into Tennessee and Alabama last year. 

Dunnhumby and Placer.ai partner for offline/online data

The two data science and analytics companies are teaming up to bring retailers in-store and out-of-store customer insights, according to a Tuesday press release. 

By combining Placer.ai’s location data and behavioral science insight with Dunnhumby’s retail consulting background, retailers and CPG companies will be able to produce “actionable strategies,” the announcement noted.

Kroger reaches deal with union workers across 3 states

United Food & Commercial Workers Local 400 reached a tentative agreement with Kroger after the union had earlier voted to approve a strike at 38 stores across West Virginia, Kentucky and Ohio. 

The contract raises starting wages to $13 per hour and provides wage increases up to $2.50 per hour for employees and department leaders. The deal also provided a salary increase for those working night shifts, according to a local Eyewitness News report.

Number of the week: 800

That is the number of stores Aldi plans to add to its U.S. footprint by the end of 2028, the discount grocer announced Thursday. Aldi will invest more than $9 billion over the next five years to open more stores in the Northeast, Midwest and West Coast as well as convert recently acquired Winn-Dixie and Harveys Supermarket locations to the Aldi brand. 

What’s ahead

Inflation numbers

The Consumer Price Index figures for February will be released on Tuesday by the U.S. Census Bureau. 

Latest retail sales data

The U.S. Census Bureau also plans to release the monthly retail sales figures for February on Thursday. 

Dollar General earnings

The discount retailer, which recently opened its 20,000th store, plans to announce its financial results for the fiscal 2023 fourth quarter and full year, which ended Feb. 2, on Thursday.

Impulse find

Make your own Aldi

As Aldi gears up for its ambitious five-year growth plan, the discount grocer is also making it possible for shoppers to build an Aldi store at home. 

A self-proclaimed “cool aunt” on Tiktok has gained more than 579,500 likes showing off Aldi’s toy grocery set, which includes shopping carts, a register with a manual conveyor belt, multiple food kits and reusable Aldi bags fashioned to look like paper bags (all sold separately). Now, kids (and cool aunts) can pretend to be Aldi team members and shoppers. 

Most importantly, this TikTok cool aunt discovered that the toy Aldi carts fasten together the same way Aldi’s real shopping carts do — and the toy model even includes a fake quarter.

@schmittly Replying to @Only me I had to know if the toy Aldi shopping cart connected to each other so I went back to Aldi abd bought a second one ???? #aldifinds #aldi #alditiktok #toyshopping #millennial #myinnerchild ♬ original sound - Arielle Schmitt