Wal-Mart faces pricing competitor as Aldi expands

Wal-Mart Stores Inc. could soon face increased competition in the form of a low-priced grocery competitor’s aggressive expansion plan.

Essen, Germany-based Aldi – which has 1,500 stores mostly located in the Midwest and on the East Coast – is planning to expand its total number of locations by 33 percent through the end of 2018, with many openings targeted for the West Coast.

Citing data from U.K.-based market research company Kantar Group, the St. Louis Post-Dispatch reports Aldi’s U.S. business amounts to roughly $13 billion in revenue.

It’s a far cry from Wal-Mart’s $298 billion business at 3,500 U.S. stores, but Aldi is projected to grow U.S. revenue to $20 billion within the next five years through food sales averaging 20 percent less than the world’s largest retailer.

Read more from the St. Louis Post-Dispatch.