Executive Summary

Supported by data on store locations and findings from consumer surveys, we take a deep dive into Aldi and Lidl in the U.S. market.

• Aldi is America’s eighth-biggest grocery retailer by estimated 2018 revenues, according to Euromonitor International. It has grown revenues by an estimated CAGR of 12.7% over the past five years.
• If Aldi maintained its five-year revenue CAGR and its bigger rivals did likewise with their respective average growth rates, Aldi would climb to seventh place in grocery in 2019 and sixth in 2022.
• Survey data shows that Aldi is the country’s second-most-shopped grocery retailer, by the number of consumers that have shopped there in the past 90 days. Almost one-quarter of U.S. consumers have shopped for groceries at Aldi in a 90-day period, rising to 40% in the Midwest.
• After a shaky start in the U.S. market, Lidl has diversified into a range of store formats. Lidl is continuing to open stores at a steady pace, and its recent acquisition of the 27-strong Best Market Chain suggests a renewed impetus to grow its footprint in the U.S.
• Given Aldi’s success, we see few reasons why Lidl should not capture meaningful share over the long term.
• We see discount formats and Amazon as potential twin pressures on midmarket legacy grocery retailers in the coming years.