When Will Aldi Finally Come to Northern California‘s High-Cost Cities?
As a retail analyst who grew up visiting my aunt in Pacific Heights, I‘ve had an inside view on San Francisco‘s notoriously high cost of living for decades. Groceries are no exception – SF residents pay steeper prices at markets compared to shoppers in most other metros.
Many locals I speak with wonder if German discounter Aldi will ever make its way north to offer relief, especially after seeing new stores steadily sprout up in SoCal cities over the past few years. It‘s an excellent question – let‘s explore when and why Aldi might finally head to SF and beyond.
Aldi‘s Growth Roadmap: NorCal Not a Near Term Priority
Since first entering California in 2016, Aldi has expanded to over 150 locations statewide. However, progress has centered around greater Los Angeles and inland areas like the Central Valley so far.
| Year | New Aldi Stores Opened in CA | Locations |
|---|---|---|
| 2021 | 20 | Torrance, Huntington Beach, Oak Park |
| 2022 | 12 | Chula Vista, Santa Clarita, Bakersfield |
I‘ve checked industry reports and insider forums extensively, but seen no hints around firm plans Aldi has to branch out towards Northern California in 2024. Expensive real estate and cut-throat grocery competition are likely blocking factors for now.
Targeting ad dollars towards growing already established territories also seems to be the priority over stretching operations thinly to new regions. But Aldi cannot afford to ignore millions of potential bargain-hunting customers across the Bay Area forever…
When Aldi Arrives, Where Will NorCal Stores Launch?
Though unlikely in the next year, analysts like myself agree Aldi will continue expanding across California. When that expansion reaches past the Central Valley towards Northern metros, ideal locations for pilot stores would be in major East Bay cities and Sacramento suburbs.
These areas have density for shopper traffic, without the extreme real estate costs down in the Valley or San Francisco city center. Additionally, Aldi tends to plot stores along highways and junctions of main commuter routes. Some initial sites could include:
- Elk Grove, south of Sacramento along 99 Highway
- Hayward on heavily-trafficked 880 corridor
- Vacaville, spanning nexus of 80 and 505 Freeway
As a foothold is established, I‘d expect to then see Aldi nutrition northwards towards SF city limits proper. Places like the Mission or Bayview neighborhoods seem like natural fits based on the urban plots Aldi has moved into in LA and San Diego.
NorCal Residents‘ Best Budget Grocery Options for Now
Until Aldi does eventually drop down from Central Valley to Bay, NorCal natives have decent backup options to save on groceries:
Grocery Outlet
- Treasure hunt format helps find steep discounts
- Brand name overstock items and closeout deals
WinCo
- Employee-owned chain passes worker equity savings to customers
- Bulk dry goods section offers low unit pricing
When managing your household budget without an Aldi nearby, remember…
