Aldi, the discount supermarket, is making some big changes to compete with Whole Foods and other organic grocery store chains.
As consumers gravitate to a healthier lifestyle, the more they visit natural food grocery stores.
Since Aldi has aggressive growth plans and the grocery sector is especially competitive following Amazon’s acquisition of Whole Foods, the German grocer is making a play to expand its natural and fresh food selection by 40 percent.
Aldi, which is the eighth biggest retailer in the world, has plans to open 700 new stores in the U.S. and is aiming to remodel 1,300 existing stores over the next four years– which will cost the company roughly $5 billion.
So should Whole Foods be nervous? Diane Sheehan, an analyst with Kantar Consulting, thinks so.
“Those retailers continue to be underestimating Aldi and are doing it to their own detriment,” said Sheehan to “CNN Money.”
Aldi is known for its affordable groceries and mainly only sells its own line of in-house products. In 2016, the chain made $84.9 billion in global revenue.
However, it may not be easy for the chain to make more”all-natural” or organic products available for purchase at stores due to the small number of suppliers that can meet large bulk orders.
“Even though they will be marketing these products under their own private label brands, there are still a limited number of suppliers who produce these types of products, which can lead to shortages or unpredictable pricing,” said RJ Hottovy, a senior retail analyst at Morningst