German discount supermarket chain “Aldi” is rapidly expanding in the U.S., with 225 new stores planned across the country in 2025 alone. The expansion has been helped by Aldi’s 2024 acquisition of Winn-Dixie and Harveys grocery stores, which it has been swiftly converting. Aldi’s growing footprint is also fueled by U.S. consumers who are embracing the smaller stores and no-frills shopping experience that helps keep prices substantially lower than most competitors.
In total, Aldi plans to open 800 of its discount grocery stores across the U.S. in a five-year expansion plan as it looks to capitalize on cost-conscious Americans feeling the pinch at grocery stores. According to the company, the 225 stores planned for this year will be “the most stores Aldi will open in one year in its nearly 50-year U.S. history.” The chain opened 120 stores in 2024, bringing its total store count to over 2,400, and making it the third-largest grocery chain in the U.S. by store count.
Aldi began as a small grocery store opened by Anna Albrecht in Essen, Germany, in 1913. After World War II, her sons, Karl and Theo Albrecht, took over the business, officially founding Albrecht KG in 1946. The brothers expanded rapidly by focusing on a no-frills, discount model—offering only essential, non-perishable goods at low prices and avoiding unnecessary expenses like advertising or store decor.
By 1961, the brothers had over 300 stores in Germany and officially adopted the name “Aldi,” short for Albrecht Diskont (Albrecht Discount). That same year, a disagreement between the brothers over selling cigarettes led them to split the business into two companies: Aldi Nord (North, led by Theo) and Aldi Süd (South, led by Karl).
Both companies grew independently and avoided operating in the same countries, with the exception of Germany and the United States. In these two countries, Aldi Nord owns Trader Joe’s and Aldi Süd operates as Aldi. Interestingly, the two companies are rumored to currently be in secret merger talks.
Aldi was slow to expand beyond Germany, not opening its first international store until 1968 in Austria. It entered the U.S. market with its first store in Iowa in 1976. The grocer has opened an average of 100 stores in the U.S. annually over the last decade. By the end of 2024, Aldi had over 2,000 stores in 39 states with nearly 50 million customers per month.
Aldi stores have not changed much in that time. The company doesn’t believe in increasing its overhead and charging the end consumer more for the products. So, it features products in their “original shipping boxes” to keep the cost low. Further, the stores have a small and functional layout with zero-frills attached – there is no background music, no major promotions, and no coupons.
Aldi stores also don’t offer meat counters, bakeries, pharmacies, or liquor. Their focus is to offer a limited selection of products, 90% of which are private labels, which allows them to keep prices very low for the consumer. Another quirk of Aldi stores is the coin customers have to pay to get a cart, though they get it back when they return it. Customers also bag their own groceries.
Aldi remains family-owned, never having gone public, and is credited with reshaping supermarket pricing and competition worldwide. Theo Albrecht died in 2010 with an estimated fortune of $16.7 billion, making him the 31st richest person in the world at the time. His brother Karl passed away in 2014 with an estimated net worth of $23.14 billion. Upon his death, Karl was the richest person in Germany and the fourth-richest person in Europe.
Beyond their business dealings, little is known about the Albrecht brothers and their family. The clan was once described by Forbes as “more reclusive than the yeti.” It’s believed this is due to the 1971 kidnapping of Theo Albrecht. A ransom of approximately $2 million was paid for his release, and his kidnappers were eventually caught. However, Theo and the rest of the Albrecht family largely withdrew from public life after the incident. The kidnapping also traumatized Theo. He apparently drove to work in an armored car, using a different route every day. The last published photo of Theo Albrecht dates from 1971, one day after his kidnapping.
Bottom line, this is a family business that has achieved great success by simply being consistent and hitting the layups and free throws. (Sources: Forbes, The Wall Street Journal, Retail Today, Wiki)
