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Aldi Is Heating Up The Competition Against Whole Foods, Walmart

When it comes to shopping, this German grocer believes less is more.

Discount grocery chain Aldi has plans to aggressively expand its presence in the U.S. grocery sector. To compete with brands like Whole Foods following its Amazon acquisition, Aldi plans to cut costs exponentially by lowering prices as well as the selection of food offered in the store, the Wall Street Journal reports.

Aldi Fresh
Aldi is shaking up the supermarket landscape.

The grocer recently announced a $3.4B investment aimed to double its presence in the U.S. by 2022. This would mean Aldi would have approximately 2,500 stores across the country, making it the third-largest grocery retailer, trailing only Walmart and Kroger. Aldi is also investing $1.6B in renovations on its current stock of stores.

By lowering food costs, Aldi will save on rent, energy costs and staff because stores will be smaller and fewer people are needed to stock shelves, the Journal reports. Where Walmart tends to carry around 120,000 items in its super centers, Aldi carries between 20,000 and 50,000 items.

According to the WSJ, Aldi’s strength also lies in the fact that it appeals to people in every demographic because while prices are low, the quality remains high. Limiting the number of items sold in stores allows the company to be picky about the items it chooses to carry. Many are taste-tested and quality-controlled before they ever hit shelves.