Aldi makes major move targeting rivals Kroger, Trader Joe’s

Few could have predicted that what began as a small discount grocer in Germany would quickly become one of the fastest-growing grocery chains in the U.S. 

Aldi, known for its no-frills shopping experience and low prices, is expanding its U.S. footprint at a pace that even its American rivals can’t keep up with.

Aldi revealed bold plans to open more than 225 new stores nationwide, marking its largest-ever single-year expansion. This move is part of a five-year national growth strategy with a $9 billion investment to increase its U.S. footprint significantly.

Related: Aldi acquires multiple locations from bankrupt retail chain

It’s a huge leap from the nearly 120 stores Aldi opened in 2024, which brought its total store count to more than 2,400 nationwide. As of early 2025, the company operates over 2,500 locations, making it the third-largest grocery chain in the U.S. by location numbers.

“With our expansion across the country, Aldi is earning the trust of more shoppers in more communities than ever before, bringing us closer to becoming America’s first stop for groceries,” said Aldi CEO Jason Hart in a statement.

Aldi announces a major store expansion in the U.S.

Image source: Shutterstock

Where the new Aldi stores are opening

While Aldi has yet to release the full list of its 2025 store openings, it has confirmed that nearly half will be conversions of former Winn-Dixie and Harvey Supermarket sites. These stores were acquired in 2023 from Southeast Grocers and are mostly located in Florida and across Southeastern states.

The grocery chain also shared plans to open its largest New York City location to date, a 25,000-square-foot store near Times Square, expected to open in summer 2026. 

This high-traffic area gives Aldi the opportunity to serve Manhattan residents and reach millions of tourists, helping it boost brand awareness and introduce its products to new audiences.

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However, Aldi’s ambitions don’t stop there. 

The company raised the number of stores opening by the end of 2025 to more than double, potentially increasing its store count to around 2,600. It also plans to open over 800 additional stores by the end of 2028.

Why Aldi is winning over American shoppers

Aldi has built a loyal customer base in the U.S. with its minimalist approach and cost-cutting operational practices, which allow it to offer consistently lower prices than its competitors. 

Aldi’s cost-cutting strategy

  • Roughly 90% of its inventory consists of private-label products.
  • It offers a more limited variety of products.
  • The chain purchases in bulk.
  • It displays products in the same boxes they were shipped in.
  • Aldi doesn’t provide single-use bags.
  • The retailer requires customers to bag their groceries.
  • Customers have to return shopping carts after using them for a small compensation.

In today’s uncertain economic climate, marked by inflation and rising food prices, American consumers are tightening their spending now more than ever, which makes Aldi’s value-driven approach very appealing to shoppers.

According to Numerator, 99% of U.S. households now purchase private-label products. 

Consumers are increasingly switching from purchasing their everyday necessities at big-box retail chains like Kroger  (KR)  and Walmart  (WMT)  — whose wide product range, reliance on national brands, and higher labor and maintenance costs can lead to higher prices — to more budget-friendly alternatives like Aldi.  

Related: 111-year-old grocery store chain announces major closures in 4 states