Expect to see more Aldi stores in the next 5 years as discount chain expands

The German chain has excelled where other grocery stores have struggled.

The growth of discount grocery chain Aldi shows no signs of stopping, with the German-owned company planning a big expansion over the next five years.

Reuters reports the company is investing $3.4 billion into its U.S. operations that will increase its store numbers from 1,600 to 2,500 by 2022, while remodeling 1,300 of its existing stores.

The news agency notes Aldi's success in the U.S. has "disrupted" the country's grocery market, as its competitive prices have seen it excel while other retailers struggle.

The company currently has 52 stores in Minnesota, so shoppers can expect that number to increase through its expansion plan.

GoMN's weekly financial feature, The Tip Jar, recently compared Aldi prices with 10 other major grocery chains in the Twin Cities, and found that it was significantly cheaper than all of them.

A selection of around 40 grocery items came in $16.54 cheaper at Aldi compared to the next cheapest, Walmart.

How is Aldi so cheap?

Business Insider explains the German budget retailer is able to comfortably undercut the competition by a combination of shunning most name brands in favor of its own private labels, setting out its store in a way that it requires fewer workers, and encouraging customers to reduce Aldi's costs by, say, bringing their own bags.

The U.S. grocery market is expected to welcome another German discount grocery chain, and a rival to Aldi, in the coming months, with Lidl opening its first six U.S. stores in North Carolina on Thursday.

USA Today reports it intends to open its first 100 stores by the end of 2018. No word yet if Minnesota is in its plans.

MPR reports that the Twin Cities market will be getting even more crowded thanks to the continued expansion of Hy-Vee, which has proven popular with metro area shoppers since debuting in 2015.

It plans to almost double its metro area stores from eight to 15 in the coming years, MPR notes.

The retailer is competitively priced compared to rivals like Cub and Target, finishing 3rd on Tip Jar's grocery store comparison after Aldi and Walmart, but manages to market itself as a more upmarket experience similar to that of Lunds & Byerly or Kowalski's.

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