Grocer Aldi to add 800 of its discount stores across the US – NBC New York

Aldi plans to open 800 of its discount grocery stores across the United States as part of a five-year expansion plan to take advantage of cost-conscious Americans feeling the pain of grocery stores.

Inflation has caused many consumers to change the way they shop. Tired of prices that remain about 19% on average higher than they were before the pandemic, consumers are looking for new ways to reduce their spending. At grocery stores, they’re ditching big brands in favor of store-brand items, turning to discount stores, or simply buying fewer items like snacks or gourmet foods.

Consumers’ growing pushback against what critics condemn as price gouging has been most evident in food, as well as consumer goods like paper towels and napkins.

Prices are also federally monitored, with the Federal Trade Commission suing last month to block a proposed merger between grocery giants Kroger and Albertsons, saying the $24.6 billion deal dollars would eliminate competition and drive up prices for millions of Americans. Kroger and Albertsons, two of the nation’s largest grocers, have agreed to merge in October 2022.

This practice generally affects grocery store shoppers. Here’s what that means.

In the United States, prices for food consumed at home typically rise 2.5% annually, but in 2022 they rose 11.4% and in 2023 they rose another 5%, data shows of the government.

Aldi said Thursday its plan includes opening new stores and converting stores. It plans to add nearly 330 stores in the Northeast and Midwest regions by the end of 2028. The company will also add more stores in Southern California and Phoenix and enter new cities, including Las Vegas.

Aldi, which recently completed its acquisition of Southeastern Grocers, said it would convert a significant number of Winn-Dixie and Harveys supermarkets to its format over the next few years.

“Our growth is fueled by our customers, and they are demanding more ALDI stores in their neighborhoods nationwide,” Aldi CEO Jason Hart said in a statement.

The company, based in Batavia, Illinois, just west of Chicago, will invest more than $9 billion in its national expansion.