Aldi plots 225-store U.S. expansion, NYC flagship planned as part of 2028 goal
German discount chain targets roughly 3,200 U.S. locations by 2028; expansion mirrors a long-running push while the founders’ histories and frugal culture remain part of the brand narrative.
Aldi announced a rapid expansion in the United States, saying it will open more than 225 new stores this year and debut a flagship location in New York City’s Times Square next summer. The plan is part of a broader objective to reach about 3,200 U.S. locations by 2028, a milestone that would elevate Aldi to the third-largest grocery chain in the country by store count.
The growth comes as Aldi leans into a model built on cost discipline, efficiency and a heavy reliance on private-label products. About 90 percent of Aldi’s offerings come from its own lines, a strategy that helps keep prices lower than typical national brands. Stores are intentionally compact to speed customers through checkout, and products are often displayed in their original shipping boxes to streamline restocking. The approach appears to be resonating with shoppers, as the retailer has reported steady gains in visits over the past year.
Aldi’s footprint in the United States has expanded gradually since its first U.S. store opened in 1976 in Iowa City, Iowa, under the Aldi Sud banner. The launch followed a 1970s push that sought to prove the efficiency-driven concept could work outside Germany. An early U.S. advertising push boasted about “18.4 percent savings at Aldi,” emphasizing a no-frills store design and a focus on value over spectacle. The company’s U.S. expansion would accelerate in subsequent decades, culminating in a vast global network that now exceeds 7,000 stores worldwide and a heightened emphasis on scale in the United States.
Behind the numbers, Aldi’s story includes a long-running emphasis on frugality that dates back to its founders, Karl and Theo Albrecht. The brothers took over their mother Anna’s Essen grocery operation in the early 20th century and built it into the foundation of Aldi as it is known today. The company’s path split in 1961, after a dispute over cigarettes, when the venture divided into Aldi Nord (in the north) and Aldi Sud (in the south). The Aldi name itself — short for Albrecht Discount — became the banner under which the siblings’ discounting philosophy persisted. Karl and Theo kept a famously low profile as leaders; Theo, in particular, became known for a reserved demeanor, a trait that audiences have long associated with the brand.
Historical profiles recount dramatic episodes from the brothers’ lives, including their participation in World War II and a high-profile kidnapping that touched Theo Albrecht’s life in 1971. Theo was held for 17 days in a Düsseldorf cupboard at the hands of abductors before a ransom was negotiated and paid. The event left a lasting mark on the family’s approach to public exposure and corporate governance. Karl was reported to have faced the front lines in the Eastern Front and North Africa, where the narrative suggests he sustained injuries that shaped his outlook on risk and efficiency. The wartime chapters are part of the broader lore surrounding Aldi’s founders and are cited in various profiles that accompany the business’s civilian-mission focus on value and simplicity.
The U.S. expansion has included strategic shifts in store placement and ownership of regional banners. In 2023, Aldi completed purchases that expanded its footprint through the conversion of Winn-Dixie and Harveys Supermarket locations, a move that will account for roughly half of Aldi’s new stores moving forward. The pace of growth is complemented by ambitious real estate plans in major markets; the upcoming New York City store is planned to span about 25,000 square feet, substantially larger than many Aldi units and signaling a push to underscore the brand’s urban presence while maintaining its typical efficiency-driven layout.
From a market perspective, Aldi has made progress on its U.S. expansion while maintaining its core operating model. In recent months, consumer interest in discount retail formats has remained robust, helping to drive visits and transactions across the network. Industry observers have noted that the retailer’s emphasis on cost containment, private labels and simplified store formats allows it to scale rapidly without compromising price leadership. Early indicators from programmed openings and quarterly performance suggest Aldi’s U.S. footprint could approach a significant milestone if the timetable holds, potentially reshaping the competitive landscape for grocery chains in major metropolitan areas.
As Aldi presses forward, the combination of aggressive expansion, strategic store reformatting and its long-standing frugal ethos continues to define its market position. The Times Square flagship, if completed as planned, would mark one of the most prominent demonstrations of Aldi’s urban growth strategy to date, underscoring the company’s intention to blend value-driven shopping with high-visibility retail formats. The broader goal of reaching about 3,200 U.S. locations by 2028 would place Aldi among the nation’s top store-count players, a development that would have wide-ranging implications for supply chains, labor markets and consumer choice across the country.