Costco rival launches expansion plans

Core Insights - The rising cost of groceries is driving consumers to seek out discount retailers like Aldi and Walmart, with higher-income shoppers increasingly turning to these stores [2][11] - Aldi has announced plans to open over 180 new stores by the end of the year, aiming for a total of 2,800 stores by the end of 2026 and 3,200 by the end of 2028 [4][6] - Aldi's expansion could significantly impact competitors like Costco, which relies on membership fees and private-label products to attract customers [10][13] Company Strategies - Aldi is focusing on expanding its presence in new markets and enhancing its online shopping experience, which may attract more customers [6][14] - Costco reported a 92.2% membership renewal rate in the U.S. and Canada, but experienced a slight slowdown in renewals, indicating potential challenges ahead [11] - The competition between Aldi and Costco is intensified by Aldi's low-cost model, which does not require an annual membership fee, making it more appealing to budget-conscious consumers [10][13] Market Trends - Inflation has led to significant changes in grocery shopping habits, with 88% of Americans altering their shopping behaviors due to rising prices [16] - American families spent an average of $310 more on groceries in 2025 compared to 2024, marking a 4% year-over-year increase [16] - Grocery prices rose by 2.4% nationally in December 2025 compared to the previous year, with the Western U.S. experiencing a 1.1% increase, the largest monthly rise since 2022 [16]