From 2019 to 2023, Aldi, Lidl, Dollar General and Dollar Tree collectively expanded their store footprint by almost 17%

Discount stores and value grocers like Aldi, Lidl and Dollar General are benefiting the most from the inflation-ridden high grocery prices as they see increased foot traffic from budget-conscious consumers.

From 2019 to 2023, Aldi, Lidl, Dollar General and Dollar Tree collectively expanded their store footprint by almost 17%.

The success of German-owned Aldi and Lidl is attributed to their ability to offer lower prices, good quality and limited selections, which cater to deal-focused consumers. Aldi generated $124 billion in 2022, with $40 billion in the US alone.

Dollar stores have expanded into grocery provisions, particularly in rural and lower-income communities, becoming critical sources of affordable groceries and essentials.

However, not all expansions have been successful, as Dollar Tree plans to close nearly 1,000 stores, mainly from its Family Dollar subsidiary.

The rapid expansion of discount and value retailers poses challenges for incumbent supermarkets, like Target, Giant Foods, Whole Foods and Trader Joe’s, which may lower prices to remain competitive.