Supermarket chain Aldi has announced plans to expand in the U.S. by adding 80 more supermarkets per year around the nation.
The Des Moines Register reports that the German company — which already has stores in 32 states, mostly in the Midwest — plans on introducing a market in California as part of its expansion.
Aldi operates by only carrying the essential goods, not offering nearly as many products as Hy-Vee and Fareway, its main Iowa competitors. However, many customers prefer to shop at Aldi over other supermarkets because of its low prices and clean atmosphere.
A grocery store analyst estimated that consumers who shop at Aldi save between 15 to 20% more than those who shop at Walmart (WMT) and about 25% more than those who shop at Hy-Vee.
Besides the fact that it has loyal customers, Aldi also benefits from having a successful business model that prevents it from accumulating debt by only spending within its means.