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Nearly every aspect of Aldi’s operation revolves around saving money and it’s that practice that is helping grow the German-based grocer across the US, The Wall Street Journal reports.
The company’s stores typically carry about 2,000 separate items, compared with an average of more than 31,000 at major supermarket operators. The stores are also typically about 20,000 square feet, less than half the size of the average supermarket.
The small-store means cheaper rent, lower energy costs and fewer employees, while a narrower selection means Aldi can source products from suppliers in larger volumes, at a cheaper price.
It appears to be a winning formula. Data shows foot traffic at Aldi stores in March was up about 26% compared with the prior year and significantly higher than the increases posted by specialty grocer competitors.
Aldi has been adding about 100 stores a year over the past decade and plans to roughly double that pace, adding 800 stores nationwide by the end of 2028 as part of a $9 billion expansion plan.
In March, Aldi purchased 3 acres near the Cortana Amazon fulfillment center for nearly $1.35 million. The grocery chain opened its second Baton Rouge location on O’Neal Lane in January and has another store near Interstate 10 and Siegen Lane.
Aldi has 10 additional south Louisiana stores and is expected to open more as part of an aggressive multiyear expansion plan.
Read a recent Business Report feature about Aldi’s expansion into the Capital Region.
