The financial impact of the pandemic has lingered more than five years afterward. And it’s forced consumers to make changes to the way they spend their money.
The combination of generous stimulus policies and supply chain bottlenecks in 2021 drove a surge in inflation that peaked in 2022. That year, living costs were up over 9% at one point.
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While inflation has thankfully cooled more recently, living costs remain elevated. And consumers have been spending their money differently to prioritize basic needs.
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For many, that’s meant cutting back on restaurant outings in favor of more economical home-cooked meals.
It’s a known fact that restaurants charge a significant markup on the items they serve. And they have to – otherwise they wouldn’t be able to stay afloat.
But when money is tight, consumers tend to spend more at supermarkets. And they tend to seek out discount grocers in particular for the savings involved.
ALDI unveils plans to take on Trader Joe’s.
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ALDI has unbeatable prices for a reason
ALDI has a reputation for being one of the most affordable grocery store chains in the country. But there’s a reason for that.
Most supermarkets offer a whopping 40,000 SKUs (stock keeping units). ALDI, on the other hand, limits its inventory to more like 1,400 SKUs. And that gives the supermarket giant more negotiating power with its suppliers.
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ALDI’s shelves are also, for the most part, devoid of national brands. More than 90% of the store’s inventory consists of brands that are exclusive to ALDI.
It’s for these reasons that ALDI is often compared to rival supermarket chain Trader Joe’s.
Like ALDI, Trader Joe’s is known for its limited selection and inventory of private-label products. Both stores also have a reputation for offering quality products at affordable prices.
Another similarity between the two stores is their frequently rotating inventory. Part of the fun of shopping at Trader Joe’s is scooping up seasonal items while they’re in stock.
ALDI’s inventory tends to rotate even more frequently than Trader Joe’s, particularly in the famous ALDI Finds aisle. With new products getting added week to week, it’s a highlight that makes the otherwise mundane task of grocery shopping a lot more fun.
ALDI expansion is good news for inflation-weary consumers
At a time when consumers need all the savings they can get, ALDI is coming to the rescue. The company recently announced plans to open a record-breaking 225 new stores in 2025 as part of its five-year growth strategy.
The new stores will open through a combination of organic growth and conversions of some Winn-Dixie and Harveys Supermarkets to the ALDI format. An estimated 100 converted locations are expected to re-launch by the end of the year as part of ALDI’s Southeast expansion.
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ALDI is also adding stores in the Northeast and Midwest while working to grow its presence in areas such as Southern California and Arizona.
Last year, ALDI opened almost 120 stores, bringing its total count to more than 2,4000.
“ALDI continues to see more shoppers come through our doors as they experience our quicker, easier, and more affordable shopping experience firsthand,” said ALDI CEO Jason Hart. “With our expansion across the country, ALDI is earning the trust of more shoppers in more communities than ever before, bringing us closer to becoming America’s first stop for groceries.”
Given the way food prices have been surging, ALDI’s expansion couldn’t come at a better time.
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Many consumers are also worried that tariff policies will drive up the cost of essential grocery items. A chain like ALDI is well-positioned to remain agile in the face of tariffs, given its limited inventory and assortment of exclusive brands.
Of course, some shoppers may feel that ALDI’s inventory is almost too limited, so it will be interesting to see if ALDI works to expand its lineup on top of its footprint in the coming year.
