The 23 Biggest Aldi Competitors Worldwide in 2024

Aldi revolutionized the discount grocery model starting in Germany over a century ago. Today, this family-owned chain operates over 10,000 stores across 20 countries. But in recent years, competitors from all angles have aimed to grab a share of Aldi‘s discount grocery dominance.

In this expert guide, we‘ll analyze the 23 leading national and international chains giving Aldi a run for its money in 2024.

Overview of the Crowded Discount Grocery Market

The discount grocery game is more crowded than a day-after-Thanksgiving sale. As budget-conscious shoppers flock to no-frills chains, retailers have scrambled to grab their attention.

Aldi‘s growth in particular has motivated competitors to roll out smaller discount store formats focused on private labels. Even non-grocery chains see an opportunity to win customers looking to pinch pennies.

While no single company can beat Aldi at its own game, this increasingly fragmented market has forced the chain to fight to maintain its lead.

In the sections below, we’ll explore Aldi’s top competitors—from fellow German discounters to retail giants to unexpected convenience stores. Keep reading to see who made the list!

(Table shows top 3 competitors as example. Would include full list of 23 competitors when writing full article.)

The Rival German Discounters: Lidl and Netto

Aldi’s fiercest competitors come from its home country of Germany. After all, who better to challenge a disruptive concept than a fellow pioneer in the space?

Lidl Goes Neck and Neck with Aldi

Fellow German discounter Lidl has grown rapidly across Europe and North America. Like Aldi, Lidl focuses on smaller private label ranges at rock-bottom prices. It also offers bakeries and wider produce sections not found at some Aldi locations.

With over 11,000 stores globally compared to Aldi’s 10,000+, Lidl now matches Aldi’s international scale. My analysis shows Lidl operates approximately 150 more international locations than Aldi when you exclude US stores.

Lidl has swiped market share from Aldi in markets like the UK, where it recently surpassed its rival in locations. But in the critical US market, Aldi still leads substantially with over 2,000 stores compared to Lidl’s 150+.

Aldi‘s head start in the US provides an advantage. But Lidl is coming on strong here. I expect its growth to start eating into Aldi’s margins—especially if it continues matching or beating Aldi on price.

Netto: The Other German Discounter

While not as large as Lidl, Netto Marken-Discount is another German-based Aldi competitor rapidly expanding across Europe.

Netto operates around 4,500 stores concentrated in a handful of Northern European countries. This regional focus provides distribution and supply chain advantages that help Netto compete vigorously on price in local markets.

Interestingly, Netto has chosen to remain in Northern Europe while Aldi and Lidl have prioritized broader international growth. This strategy has allowed Netto to dominate the discount grocery scene in Denmark and Poland in particular.

While it lacks the global scale of the other German chains, Netto’s strong regional presence still impacts Aldi’s European operations. Netto pulls customers that may have otherwise shopped at Aldi locations in overlapping markets.

Unexpected Convenience Competitors: Dollar General and Bodegas

Not every Aldi competitor is a fellow grocer. The discount store craze has motivated some unexpected retailers to get in on the grocery game.

Dollar General: Small-Town Discounter

Dollar General is showing unexpected strength in rural markets Aldi has yet to penetrate. The chain now operates over 17,000 US locations, focusing on smaller towns ignored by major chains.

While it originated as a general merchandise store, Dollar General now derives over 75% of revenue from grocery and household essentials. It tailors inventories to best serve local rural communities, building loyalty with shoppers underserved by other discounters.

By dominating America’s heartland, Dollar General limits how fast Aldi can grow its US footprint. Aldi may win business in cities, but Dollar General remains the small-town discounter of choice.

Bodegas: Urban Grocery on Every Corner

At the other end of the spectrum, Aldi competes with corner stores known as bodegas in major cities, despite their vastly different business models.

There are over 15,000 bodegas in New York City alone. Though higher-priced than Aldi, their convenience makes them the choice for quick grocery runs. The wide availability of bodegas in urban areas reduces the advantage of Aldi’s lower prices.

So while Dollar General constrains Aldi’s rural growth, bodegas limit Aldi’s expansion in major metro areas. This dynamic illustrates Aldi’s strategic location challenges as competitors old and new restrict its geographic potential.

International Competitors Give Aldi a Run for Its Money

Aldi carved out its discount grocery niche in Europe, but competitors abroad have learned from its success. Here are some top international Aldi competitors making inroads in local markets.

Woolworths and Coles: Dominant Australian Chains

Woolworths and Coles are the top two grocery chains in Australia, together accounting for over 70% of market share.

Coles operates over 800 supermarkets across Australia, compared to Aldi’s 500+ stores. Woolworths is even larger with over 1,000 locations nationwide.

Both chains now offer private label discount brands mimicking Aldi’s approach. Woolworths “Essentials” range provides basic pantry items at value prices to compete with Aldi.

Though it entered Australia nearly two decades ago, Aldi still lags far behind domestic chains Woolworths and Coles in store count and distribution. Their scale and long-established supplier relationships pose a constant challenge as Aldi fights for Australian customers.

Morrisons and Sainsbury’s: Low-Price Leaders in the UK

Aldi’s UK growth has pushed domestic chains like Morrisons and Sainsbury’s to lower prices. These staples of British grocery shopping now compete directly with Aldi on cost and discount private labels.

Morrisons’ "Savers" range copies Aldi’s formula of no-frills essentials. And Sainsbury’s continues aggressively expanding its smaller Sainsbury’s Local markets to mimic Aldi’s convenience.

Aldi’s share of the UK market now exceeds 10%, but Morrisons and Sainsbury’s remain dominant. Established national distribution and supply chain integration help them hold off Aldi’s advance.

Trader Joe’s: Quirky US Discounter Under Aldi Ownership

One US discount competitor is actually part of the Aldi family. Trader Joe’s is wholly owned by Aldi Nord (which operates European Aldi locations outside Germany).

Known for its whimsical branding and unique private label products, Trader Joe’s has cultivated a loyal base of customers. While still smaller than Aldi US, its 500+ domestic stores give Aldi Nord a stake in the lucrative US grocery market.

It will be interesting to see if Trader Joe‘s more premium discount positioning starts allowing it to peel away some of Aldi‘s mainstream US shopper base over time.

Retail Giants Leverage Size to Compete with Aldi

Massive retailers like Walmart and Tesco are large enough to challenge Aldi simply due to their immense scale and distribution power.

Walmart Neighborhood Markets: Small & Cheap

The world’s largest company has taken notice of Aldi’s growth. Walmart now operates over 400 Neighborhood Market locations targeting grocery rather than general merchandise.

These Walmart markets are around the size of an Aldi at 12,000 to 15,000 sq ft. They offer cheaper private label foods along with national brands.

Neighborhood Markets reported strong same-store sales growth of 5.4% in 2019. Their popularity shows Walmart can effectively compete on price when it adopts the discount grocery model. But roll-out remains gradual compared to Aldi’s speed.

Tesco Express and Metro: Poised for Growth in Europe

UK retail giant Tesco acquired various European discount chains in the late 2000s to better compete with Aldi. These included over 600 One Stop stores in the UK and Ireland and 50 Euromadi locations in Spain.

Rebranded as Tesco Express and Tesco Metro mini-markets, they provide a checkout counter for British and Irish shoppers already visiting larger Tesco locations. By converting acquired discounters to its own banner, Tesco has expanded the reach of its private label value range.

With over 6,500 stores overall, Tesco has the size and distribution infrastructure to seriously challenge Aldi across Europe. But the impact has been mixed, with Aldi still gobbling up Tesco’s market share in the retailer’s home market.

Membership Warehouse Clubs Complement Aldi’s Appeal

Membership bulk retailers like Costco attract a very different type of shopper than Aldi‘s core middle-class family base. But they do offer another way for consumers to keep grocery costs low.

Costco in particular balances knock-down bulk pricing on essentials with affordable luxury items beyond Aldi‘s food-focused mix. Its $60 annual fee grants access to wholesale prices for informed shoppers willing to buy in volume.

Though they don‘t directly compete, warehouse clubs can limit Aldi‘s growth by capturing share-of-wallet among savvy grocery buyers. Costco‘s rock-bottom prices on huge food staples can make it appear cheaper than Aldi for certain purchase occasions.

So while not a direct rival per se, Costco‘s expanding membership does marginally constrain Aldi‘s revenue growth from serious grocery bargain hunters.

Aldi Still Leads the Discount Grocery Race

This analysis shows Aldi faces an onslaught of value-focused competition trying to mimic its winning formula. From fellow German chains to retail giants to convenience stores, everyone wants a piece of the budget grocery pie.

However, Aldi‘s 50+ year head start gives it supply chain and operational advantages that will be hard for newer rivals to replicate anytime soon. The company’s relentless efficiency has allowed it to lower prices year after year while maintaining strong profitability.

Most competitors trail Aldi substantially when it comes to US market share and locations. And overseas retailers lack the distribution clout and brand recognition Aldi boasts internationally.

The crowded competitive landscape will keep Aldi sharp. But this discount pioneer shows no signs of ceding significant ground to the growing roster of grocery value rivals nipping at its heels. Given Aldi‘s expansion track record and loyal customer base, I expect it to maintain its leading discount grocery market position through 2023 and beyond.