In a statement released on Friday, German-owned discount grocer Aldi plans to invest $3 billion to open 650 new stores across the United States in the next five years as well as building a regional headquarters and distribution center in California. The expansion is expected to create more than 10,000 new jobs
“We are eager to bring the Aldi difference to new markets like Southern California,” President Jason Hart said in a statement. “We’re ramping up our expansion plans to meet growing demand.”
The announcement places Aldi in line with Family Dollar and Dollar General who have grown significantly over the last few years. The move has the potential to dramatically change the competitive landscape in numerous U.S. markets and further challenge suburban America’s crop of largely undifferentiated grocers. The expansion of Aldi in the coming years will keep Private Brands in the forefront of competitive U.S. retail strategy as retailers attempt to decipher their Private Brand focused strategy.