Aldi plans to add 800 stores over the next four years. Dollar General expects to add that many just this year. And their main rivals have ambitions of their own.
Together, these discount grocers and value retailers are sprinting to meet consumers where they are: hunting for cheaper grocery options.
Prices in the grocery category have surged 25% over the past four years, outpacing the overall inflation rate of 20% during the same period. That opens the door for discount and value-driven retailers, said John Clear, senior director in the consumer retail group at consulting firm Alvarez & Marsal.
Discount chain Aldi, for instance, could “double down and continue to be pretty aggressive because they’re the perfect retailer for this environment,” Clear said.
Reese Samuel, a 22-year-old swim coach in D.C., said he and his roommate buy most of their groceries from a recently opened Lidl to maintain a high-protein diet on a budget.
“We eat a lot, so getting …