Topline
German discount supermarket chain Aldi announced Thursday a $9 billion investment to add 800 new stores across the U.S. over the next four years, an expansion that will be in-part fueled by its acquisition of Winn-Dixie and Harveys Supermarket.
The chain also announced its acquisition of Southeastern Grocers.
Key Facts
Aldi says it will add 330 stores across the Midwest and Northeast in the next five years while opening more stores in Southern California and Phoenix—and expanding into new cities, including Las Vegas.
The supermarket chain also announced it finalized its acquisition of Southeastern Grocers and its Winn-Dixie and Harveys Supermarket brands, which will account for approximately 400 stores across Alabama, Florida, Georgia, Louisiana and Mississippi.
A “significant number” of those locations are converting to the Aldi format in the coming years—approximately 50 of which are beginning the process by the end of the year.
The release did not indicate the financial details of the Southeastern acquisition.
Aldi told Forbes’ it “does not disclose financial information” as a private company.
Big Number
Nearly 3,200. That’s how many stores the discount grocer will have in the U.S. by the end of the expansion, according to company data.
Tangent
On Feb. 26, the Federal Trade Commission—along with eight states and Washington, D.C.—filed a lawsuit to block Kroger’s proposed $24.6 billion acquisition of Albertsons, over allegations the deal is anti-competitive. The merger is the largest proposed supermarket merger in the nation’s history.
Surprising Fact
The discount supermarket chain has opened nearly 100 new stores in the U.S. annually for the last decade, according to company data.
Key Background
After opening its doors in Germany in 1913, Aldi made its way to the U.S. in 1976. It opened its first location in Iowa—which expanded to 300 stores across America nearly two decades later. The discount supermarket chain, known for its no-frills approach to shopping, currently has nearly 2,400 stores nationwide with nearly 50 million customers per month. About 90% of the products sold are from Aldi exclusive brands, according to the company. As part of its continued effort to expand, it announced plans to acquire Southeastern Grocers last August. In late January, Southeastern Grocer completed its divestiture of its grocery store chain Fresco y Más to Fresco Retail Group, LLC as part of the merger.
Further Reading
Kroger-Albertsons Merger Challenged In Court By FTC, 8 States (Forbes)
Why Aldi Acquisition Of Winn-Dixie And Harveys Supermarket Is A Big Win (Forbes)
