July 12, 2017
Aldi, a discount grocery chain from Germany, will add a fourth location in San Diego County. This store will be located at Escondido Valley Center and is currently being built.
Aldi's new store will be 22,000 square feet and will take up more than half the space that Sports Authority had before closing in June 2016. The new Aldi's location is expected to open at the year's end and will be the second store for Escondido residents.
The first Aldi store opened in 1961 Germany, under the philosophy that less-is-more. The chain provides customers with bargain prices for the frill-free experience. Aldi's has no pharmacies, coffee kiosks or store banks that you'd see in other big-name stores such as Wal-Mart, Kroger Marketplace, etc.
The store also has its own in-store brand of product, which comprises of 90% of items its sales.
The first Aldi store in San Diego came last May with its Vista store and has opened two additional stores in Escondido and Chula Vista. The second store in Escondido is part of Aldi's $3.4 billion U.S. expansion plan. The company would like to reach 2,500 stores by 2022, which would make it the nation's third-largest grocer, serving about 100 million customers each month.
Of course, Aldi does have some obstacles to overcome, as many people are turning to the Internet to purchase their products including groceries. According to a recent Credit Suisse project, nearly 25% of malls in the U.S. will close within the next five years. And, with Amazon acquiring Whole Foods, the way groceries are sold in the real world and online is set to change the status quo.
Based on an analysis from CBRE, 0.1% of yearly food and beverage sales are made online - the rest take place in brick and mortar stores.
The new Aldi store will be adjacent to the recently announced HomeGoods store, which will occupy the remainder of the square footage Sports Authority had vacated (24,000 square feet). No word on when that store will be opened.