Montage of a Costco supermarket and a thoughtful man — Costco, under threat | Viktor Gladkov, Costco

Camara — Costco, under threat | Viktor Gladkov, Costco

Costco Receives Bad News in the United States: ALDI Just Confirmed It

Costco sees how a direct competitor wants to encroach on its territory

13/02/2025 15:42:00h

Lena

The retail landscape in the United States is changing. Amid inflation and economic uncertainty, some chains have decided to bet on expansion. ALDI is one of them. The German company announced an ambitious plan to open more than 225 stores in 2025.

This move places it in a strong position against giants like Walmart, Costco, and Target. Its strategy aims to consolidate its presence in the country and attract more customers with low prices. With this offensive, ALDI could alter the balance of power in the retail sector.

Background image of a person shopping in a supermarket, next to another from the Costco supermarket inside, in the fruit section and another with an image of a Costco facade out of focus

ALDI is going after Costco and Walmart | Costco, Google Maps, Getty Images Signature

The Focus on the Southeast

The company will focus its expansion in the southeastern U.S. A key step will be the transformation of 220 Winn-Dixie and Harveys Supermarket stores into ALDI stores. This process is expected to be completed by 2027.

Costco and Walmart are sounding the alarms. Jason Hart, the company's CEO, explained the strategy: “When we announced the purchase of Southeastern Grocers, we said that many Winn-Dixie and Harveys stores would continue operating. We are fulfilling that promise while driving ALDI's growth.”

Additionally, the company agreed to sell 170 Winn-Dixie and Harveys locations to a group of investors, including C&S Wholesale Grocers and members of Southeastern Grocers.

An Unstoppable Expansion

Although the Southeast is key in its strategy, ALDI won't stop there. It has already opened several converted stores and expects at least 100 new supermarkets under its format to be operational before the end of 2025.

Aldi store facade with a modern design and shopping carts at the entrance.

ALDI is going all out in the United States | Pinterest

Jason Hart highlighted the importance of this growth: “Our expansion brings us closer to becoming the first choice for grocery shopping in the United States.” Since 2022, ALDI has grown rapidly. That year, it added 120 stores, reaching 2,400 across the country. Thanks to this pace, it became the third-largest supermarket chain in the U.S. by number of locations.

Costco, Walmart, and Target on Alert

ALDI's advance poses a threat to the major chains that have dominated the sector for decades. Its success is based on low prices, operational efficiency, and a strong presence in strategic markets.

The numbers confirm it. Currently, more than one in four American families shop at ALDI. In six years, this figure has doubled. With its new strategy, the company seeks to attract even more customers and steal market share from its competitors.

ALDI's offensive is a direct blow to Costco, Walmart, and Target. Its accelerated growth and expansion plans could change the future of retail in the United States.

➡️ Consumer Affairs