Despite facing obstacles from regulatory processes, a proposed merger between two major American grocery chains has been delayed  Meanwhile, a European competitor is considering significant growth opportunities in the US market.

According to a press release, Aldi has announced its intention to invest $9 billion in opening 800 new stores across the country as part of its expansion plan. The discount grocer stated its goal of providing the “lowest possible prices” during a period where consumers are particularly concerned with saving money.

The chain, renowned for its affordable grocery prices, has released a statement in light of the current situation in the US where consumers are struggling with increased grocery prices. As a result of the soaring costs, more people are opting to cook at home instead of dining out, as indulging in restaurant meals has become unfeasible for many individuals.

The German company did not disclose the exact locations for its new stores, but it stated its intention to reinforce its existing strong presence in the Northeast and Midwest regions. Additionally, it plans to extend its reach to the West, specifically Southern California and Phoenix, as well as venturing into new cities such as Las Vegas.

Aldi’s recent acquisition of Winn-Dixie and Harveys Supermarkets, will result in the conversion of 800 new locations. A “significant number” of these stores, mostly situated in the Southeast region, will undergo renovations and rebranding as Aldi stores.

Around 50 stores are expected to undergo a transformation later this year, with most of them reopening as Aldi stores in 2025. Nevertheless, the names of Winn-Dixie and Harveys Supermarkets will not be entirely eliminated as Aldi has stated that a considerable number of locations will maintain their current branding.

Experts analyze that Aldi’s growth is a clear challenge to traditional grocery competitors, as it presents a significant threat to the market that could lead to major disruptions for other retailers.

With its small store size of approximately 12,000 square feet, Aldi prides itself on its low-cost business approach, claiming to offer prices that are 50% lower compared to traditional supermarkets. Moreover, the majority of the products sold at Aldi, which makes up more than 90% of its inventory, are under its own private labels, setting it apart from other supermarkets with a wider variety of brands.

The recent announcement of the chain’s growth is beneficial for consumers as they are currently facing inflation and high prices at the grocery store. Now more than ever, people are now more inclined to look for better deals and prioritize value-focused retailers, such as Aldi.

Aldi’s growth should also= increase the level of competition in the grocery industry.

With Aldi’s latest strategy in place, the number of its stores in the US will reach close to 3,000, a significant increase but still lagging behind its competitors. If the merger goes through, Kroger and Albertson’s combined will have approximately 4,500 locations, while Walmart, the leading grocer in the country, currently has nearly 5,000.