Aldi’s No-Frills Setup Doesn’t Just Target Budget Shoppers

New Yorkers aren’t known for lining up before sunrise to visit a grocery store, but a recent Aldi opening in Brooklyn proved how devoted the chain’s U.S. fans have become—especially when low prices and a free tote bag are involved. The German discount grocer, once a niche favorite among extreme bargain hunters, is rapidly moving into the retail mainstream. It is now on pace to become America’s second-largest grocery chain by number of locations, trailing only Walmart, with plans to surpass 3,000 U.S. stores by 2028, according to Bloomberg.

Aldi’s U.S. sales reached an estimated $29 billion in 2024, exceeding those of Trader Joe’s, its better-known corporate cousin. That comparison surprises many shoppers, since both chains trace their origins to the same German family but have developed very different public profiles in the U.S.

The secret to Aldi’s growth is a stripped-down, efficiency-first model. Stores are smaller, carry fewer items, operate with limited hours, and rely heavily on private-label goods—more than 90% of what’s on the shelves. Shoppers even pay a refundable 25-cent deposit to use a cart. These cost-cutting measures allow Aldi to sell essentials at prices that often beat competitors, while offering cheaper versions of popular branded products. That approach has helped fuel loyalty but has also sparked legal challenges, including an ongoing lawsuit from Mondelez, which claims Aldi’s cookies too closely resemble Oreos.

The no-frills setup isn’t always pretty. Busy urban locations can feel cluttered, and produce sections may be limited. Still, customers are willing to overlook the imperfections in exchange for savings and the thrill of discovery—especially the rotating middle aisle stocked with unexpected nonfood bargains.

While competition has intensified in Europe, where rival Lidl is aggressively cutting prices, Aldi is doubling down on international expansion. The U.S. is a major focus, with more than 125 new stores scheduled to open this year alone, according to GlobalData. Planned growth includes entering Colorado for the first time, expanding further across the West and Southeast, and building three new distribution centers, Supermarket News reports.

At the same time, Aldi is broadening its appeal beyond strictly budget-conscious shoppers. The chain has rolled out more organic produce, antibiotic-free meats, upscale cheese and charcuterie selections, premium wines, and grocery delivery through Instacart. A $9 billion investment will fund 800 additional stores, including one planned for a luxury high-rise near Times Square.

Industry analysts say the stigma once attached to bare-bones grocery shopping has largely faded. As prices remain a top concern for many households, Aldi’s tradeoff—fewer frills for lower costs—appears to be resonating with a wide and growing range of American consumers.

Original Source