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Aldi aims to dominate the US grocery market

Executives say the timing is right as inflation-conscious Americans look for lower grocery bills without sacrificing quality.

NEW YORK — German discount grocer Aldi is doubling down on its U.S. ambitions, planning to add more than 200 stores on a net basis in 2025 — making it the country’s fastest-growing retailer this year after the two big dollar-store chains, according to Coresight Research.

The push includes moves into new cities and neighborhoods, highlighted by the opening of a flagship location near New York’s Times Square in 2026. At 25,000 square feet, the store will be larger than typical Aldi outlets and anchor the base of the Ellery, a luxury rental tower.

ALDI comes to Times Square
ALDI signs lease for first central Manhattan store at The Ellery on West 42nd Street.

Executives say the timing is right as inflation-conscious Americans look for lower grocery bills without sacrificing quality. Aldi, where 90% of products are private label, keeps costs down by streamlining operations — from stocking items directly in shipping crates to offering a smaller, more efficient store footprint.

“This is really Aldi’s time to shine,” said Neil Saunders of research firm GlobalData. “You can shop on a real budget at Aldi and get quite a lot for your money.”

Shoppers say the appeal goes beyond price. Aldi has invested in improving the look and product quality of its stores while building a reputation for fresh produce, organic options, and its quirky “Aldi Finds” aisle — a rotating shelf of discounted surprises ranging from pet splash pads to boot-shaped candles.

Aldi first entered the U.S. in 1976 and now operates more than 2,500 stores, making it the nation’s third-largest grocer by store count. Nearly half of this year’s new locations will come from conversions of former Winn-Dixie and Harveys supermarkets, which Aldi acquired in 2023.

Looking ahead, the company aims to add 800 more stores by the end of 2028, further cementing its reputation as a no-frills rival to bigger-box competitors. “The Northeast has always been a challenge,” said Dan Gavin, Aldi’s vice president of national real estate. “But we’re figuring out ways to make our model work in these tight urban areas.”

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