Aldi planning a major product expansion in 2019

Earlier this month Aldi announced a major product expansion to go along with its ongoing efforts to open new stores and upgrade existing locations. With the product expansion, slated to roll out early next year, Aldi says 20% of items in every store will be new when compared to the product mix during the same time one year prior.

The effort will focus on fresh, organic and easy-to-prepare offerings, and will boost the store's selection of fresh food by 40%. For instance, Aldi says it will have more ready-to-cook and organic fresh meat, a bigger assortment of produce, such as ready-to-eat sliced fruit and organic selections, and new vegan and vegetarian options such as kale and quinoa burgers, and chickenless patties and tenders.

Aldi also plans to offer a broader array of grab-and-go items like single-serve guacamole and organic hummus, fresh fruit and vegetable packs, fresh organic salsa, antipasti salad, as well as more drinks and refrigerated beverages. The retailer also said it will have one of the nation's largest selections of private label milk alternatives.

"We're in the middle of a five-year growth program, where we're opening over 800 stores to get to just under 2,500 stores by the end of 2022," said CEO Jason Hart. "We're spending a lot of money on that: $3.4 billion invested into new unit growth and $1.9 billion into the existing network of stores to remake the shopping experience, to give it a modern market feel and a little more space. We're adding about 20% more square footage to the stores."

Walmart focusing on freshness

A Supermarket News story last week reported that Walmart is making a significant effort to increase the company's emphasis on fresh products in its stores. For instance, a Walmart official said they are improving product quality and variety in the bakery section, where they have brought in new products and better quality recipes.

"Bakery is a bigger piece now than it's been in the past," said Shawn Baldwin, Walmart's SVP of Fresh.

According to Walmart U.S. CEO Greg Foran, customers want more fresh items at low prices.

"The key to that is produce, because that unlocks the rest of the grocery basket," said Foran. "If you have a good produce department they generally will buy all their groceries from you."

The emphasis on freshness also includes product presentation. Baldwin said that in new Neighborhood Market stores, customers can see back to the deli upon entering the store. In addition, in a new Supercenter in Arkansas, Walmart is testing a 12-foot counter showing fresh steaks.