German grocer Aldi plans U.S. expansion

Michael Ruhlman on evolution of grocery and culture

NEW YORK - Low-cost grocery chain Aldi said it plans to add more stores in the U.S. over the next five years, meaning more competition for traditional grocers, Walmart (WMT) and organics-focused chains like Whole Foods (WFM).

The German company focuses on private-label goods, like Trader Joe's does -- so no Kraft macaroni and cheese -- and has 1,650 stores in the U.S. Aldi said it aims to give customers organic produce and meat raised without antibiotics.

It was already planning on expanding to 2,000 stores by the end of 2018. The company now says it will be at 2,500 locations by the end of 2022.

In comparison, Kroger (KR), one of the largest U.S. grocery companies, owns chains including Kroger, Fry's, Ralphs and Harris Teeter and has about 2,800 supermarkets.

Another German grocer, Lidl, last week said it planned to expand into the U.S. by opening 10 stores in June. Lidl is a unit of Schwarz Gruppe, which operates 10,000 stores in 27 countries and is Europe's second-largest retailer behind Walmart.  

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