Aldi, a German grocery store, is anticipated to open more than 40 retail chain stores in Arizona, if they choose to expand to Phoenix. They had earlier been quoted as saying their plan was to originally open 25 new stores, but according to the Phoenix Business Journal, that number has been increased to 30-40 locations all over the city.
Aldi is also expected to open another regional Centre of distribution in Goodyear, which would help continue to fuel their growth.
A spokesperson for Aldi announced earlier this year that, the decision to open new retail stores in Arizona had not been fully implemented as of yet and an announcement has not yet been made. The company has a projection of aggressively reaching 2500 stores in the year 2022 and currently, they are looking for opportunities from coast to coast which includes tapping into the Arizona market.
The retail store has in recent years taken the United States by storm in their expansion strategies. Aldi first started by opening up retails stores along the East Coast, gradually followed up in the South and eventually to the mid-West. Aldi has more than 50 retail stores in Southern California.
If they manage to make their way into the Arizona market, it will come with stiff competition as there are already many retail stores including, Albertson’s, Safeway, Fry’s, Smart & Final, Winco, Whole Foods, Basha’s and Sprouts which are already established and well known market competitors.
In addition, stores such as Walmart, Costco, Sam’s Club and Target, which are big-box stores, have already flooded the market even more by expanding their capacity into grocery selling stores.
Aldi could open smaller locations, in an effort to set themselves apart and receive a good share of the market, while also offering affordable but a limited selection of products to their shoppers, rather than investing in the larger store style designs of the already existing stores.