Sudden store closings in Memphis and Chicago have renewed online rumors as to the company’s future.
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: WREG.com, NBCChicago.com, Wikipedia.org, ScrapeHero.com, Statistica.com, Google.com, Mashed.com, and QuerySprout.com.
This article represents the latest in a series that attempts to elucidate the truth behind internet rumors of business closures.
According to a May 19 article from WREG.com, ”Aldi Closes One Memphis Location Due to Crime,” news of the popular location’s fate came as both unexpected and unwelcome.
As excerpted from the article: The company said it has decided to close its store located at 2877 Lamar Avenue after serving the Orange Mound and Bethel Grove communities for 15 years... “We’re not a large community, but this is our store,” shopper Stacy Wilson said. In a statement, Aldi said there were multiple factors in their decision to close the store, including repeated burglaries, property damage, and poor sales performance.
On June 23, NBCChicago.com published “Abrupt Closure of Auburn Gresham Aldi Store Stuns Community,” which reported the sudden closure of a second location, this one on the South Side of Chicago, primarily due to theft.
The article states: An Aldi store on Chicago’s South Side abruptly closed this week, stunning residents and leaving community leaders questioning the company’s motives in executing the closure. The store, located in the Auburn Gresham neighborhood at 76th Street and Ashland, abruptly closed this week, with gates pulled shut and signage all boarded up… The closure comes just a month after a Whole Foods store in Englewood announced that it will close soon, and city leaders are upset that grocers are leaving the South Side.
Both the Memphis and Chicago closings have collectively served to renew rumors of business troubles within the well-regarded chain.
Let us explore further.
Wikipedia features a comprehensive overview of the Aldi market chain: Aldi is the common company brand name of two German multinational family-owned discount supermarket chains operating over 10,000 stores in 20 countries and an estimated combined turnover of more than €50 billion. The chain was founded by brothers Karl and Theo Albrecht in 1946, when they took over their mother's store in Essen. The business was split into two separate groups in 1960, that later became Aldi Nord, headquartered in Essen, and Aldi Süd (known as simply Aldi outside of Germany), headquartered in Mülheim.
In 1962, the company introduced the name “Aldi.”
Per ScrapeHero.com: There are 2,176 Aldi locations in the United States as of June 20, 2022. The state with the most number of Aldi locations in the US is Illinois, with 210 locations, which is 9% of all Aldi locations in America.
The company is among the most profitable in the world. From Statistica.com: In 2021, Aldi Group's net sales amounted to just under 134 billion U.S. dollars, a 15.3 percent growth compared to the previous year. This was the highest increase observed in the reported period, due to the spike in low-cost grocery demand during the COVID-19 pandemic. The net sales of Aldi Group were forecast to reach approximately 170.5 billion U.S. dollars in 2026, with an an average annual growth rate of 4.9 percent between 2022 and 2026.
A targeted Google search will list numerous pages with similar titles to “The Internet Thinks Aldi is Closing. Here’s What We Know“ from Mashed.com, and “Is Aldi Closing Stores?” from QuerySprout.com.
Excerpted from the latter, however: Aldi is not closing stores as a misleading headline suggested and continues its American expansion as of 2022. In 2020 and 2021, Aldi opened 200 new stores alone. To date, Aldi has over 2,100 stores in the U.S. across 38 states, and it continues to close in on becoming the third-largest grocery chain in the U.S.
There it is. Aldi is expanding, not shuttering, and the two recent stores are outliers and not representative of the company as a whole.
Aldi’s is in excellent financial condition, and is in no danger of closing down business as a whole.
Thank you for reading.