Pressure on U.S. Grocers Rises as Aldi’s Sets U.S. Expansion Plan

From the Wall Street Journal:

“Competition in the U.S. grocery sector is about to get more fierce.

Discount grocery chain Aldi is expected to unveil on Monday plans to invest $5 billion to open nearly 900 stores and remodel hundreds more in the U.S.

The expansion, over the next five years, puts the German grocer on track to becoming the third-largest food retailer in the U.S. by store count, behind the larger Wal-Mart Stores Inc. and Kroger Co. , and a growing threat to traditional food retailers.

Aldi said it is expected to have a total of 2,500 locations across the U.S. by 2022. Its plan comes as another German discounter, Lidl, is set to open its first 10 stores in the U.S. on Thursday as part of a multiyear expansion.

Executives at Wal-Mart and Kroger have been preparing for the growth of the discounters for years. Wal-Mart has been sprucing up its stores and slashing prices on some products in select markets, while Kroger continues to drive down costs to compete.”

Read more at the Wall Street Journal:

https://www.wsj.com/articles/german-discount-grocer-aldi-sets-u-s-expansion-plan-1497229200