From 2019 to 2023, Aldi, Lidl, Dollar General and Dollar Tree collectively expanded their store footprint by almost 17%
Discount stores and value grocers like Aldi, Lidl and Dollar General are benefiting the most from the inflation-ridden high grocery prices as they see increased foot traffic from budget-conscious consumers.
From 2019 to 2023, Aldi, Lidl, Dollar General and Dollar Tree collectively expanded their store footprint by almost 17%.
- Aldi added nearly 400 stores in the US since 2020, bringing its total to over 2,300 chains nationwide, according to GlobalData.
- Lidl entered America in 2017 and now has more than 170 stores.
- Last year alone, Dollar General opened 987 new stores and executed 129 relocations and 2,007 remodels, said CEO Todd Vasos.
The success of German-owned Aldi and Lidl is attributed to their ability to offer lower prices, good quality and limited selections, which cater to deal-focused consumers. Aldi generated $124 billion in 2022, with $40 billion in the US alone.
Dollar stores have expanded into grocery provisions, particularly in rural and lower-income communities, becoming critical sources of affordable groceries and essentials.
However, not all expansions have been successful, as Dollar Tree plans to close nearly 1,000 stores, mainly from its Family Dollar subsidiary.
The rapid expansion of discount and value retailers poses challenges for incumbent supermarkets, like Target, Giant Foods, Whole Foods and Trader Joe’s, which may lower prices to remain competitive.