European grocery store chain Aldi announced Thursday that it’s planning a $9 billion expansion in the U.S., opening 800 new stores across the country. The German company wants to offer ““lowest possible prices during a time when consumers are more focused than ever on saving money,” a press release stated.
Aldi didn’t specify where the stores will be, but said it aims to build upon its “already strong presence” in the Midwest and Northeast, as well as expand on the west coast. Some of the new stores will be conversions from Winn-Dixies and Harveys Supermarkets, which Aldi acquired last year.
Operating under a low-cost business model, Aldi claims its prices are up to 50% less than those at a traditional grocery store. The expansion, says retail analyst Neil Saunders, managing director at GlobalData Retail, shows that it’s “throwing down the gauntlet to traditional grocery stores.”
“Ultimately Aldi’s expansion is good news for U.S. consumers,” Saunders said. “However, it will ramp up the competitive pressure in the grocery market.”
