BATAVIA, IL-Despite the economic downturn, or perhaps due to it, value grocery store chain Aldi has continued a steady growth of new locations in the United States. The company says it will open 80 stores this year in the country, to more than 1,200 locations, and is trying new strategies for store locations to continue to open at least 80 to 100 stores each year.
The company, based in Essen, Germany, has its US headquarters here and has 1,155 locations across the country. The stores are smaller than most grocery offerings, at 11,000-17,000 square feet, with a focus on value-priced items. The Chicago area is also one of the company’s largest service areas, with 54 new stores opened in the past five years, says divisional vice president Mike Jessen.
“Like the rest of the country, the Chicago area has become a very competitive environment,” Jessen tells GlobeSt.com. “We’ve seen several new players come to the market since 2006. Whether the economy is going strong or in trouble, as the consumer is forced to stretch the food dollar, we’ve been fortunate to grow at a steady pace.”
To expand its base, the firm is looking to try new tactics for new locations. In 2008, the company opened for the first time in Florida, and last year opened its first stores in Texas. This year, the company also opened its first urban location, in Rego Park area of Queens in New York, and moved into its first mall location in Chicago Ridge, IL.
“Our typical approach has been to buy a property, build a freestanding building and operate independently,” Jessen says. “One thing we’ve done more lately is looking at entering leased facilities, such as a strip mall or enclosed mall, such as we did in May at Westfield Chicago Ridge, IL. We’re looking at any and all ways to continue our expansion process.”
He also says the company wants to push outside of its traditional demographic and into all areas. The chain has opened a location in the affluent Lincoln Park neighborhood of Chicago, but is also opening stores in the “food desert” areas of the city’s South Side. “We think the value message we provide should be open to everyone,” Jessep says.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
