How Aldi is taking on US supermarkets with its $4 almond butter

Aldi is aggressively expanding in the US with a $9bn plan to add 800 new stores over five years, targeting dense urban hubs like Manhattan. The strategy is exemplified by a new store in an underground parking lot beneath a luxury apartment complex in New York City, where a $4 jar of almond butter contrasts sharply with the $22 price at nearby grocers. This marks a shift for the German discounter, traditionally associated with suburban strip malls and lower-end consumers, as it aims to capture a larger share of the US grocery market, where it currently holds 2.9%. Aldi's success in the UK, where it is now the fourth biggest grocer with 10.8% of the market, serves as a model for its US ambitions. The company's rise has been fueled by offering discount prices for high-quality goods, a strategy that has resonated particularly well during the cost of living crisis. Data shows Aldi is capturing middle- and higher-income shoppers, with household incomes between $75,000 and $125,000, as persistent inflation forces wealthier households to trade down from conventional grocery stores.