Is Aldi coming to Canada? (plans, potential locations and more)
While grocery store expansion is a tough business, expanding into a completely different country is another, and many chains simply aren’t equipped to handle it.
Germany-based supermarket chain Aldi has been expanding in its home market for decades, first entering North America in the 1970s, but despite having more than 2,000 stores in the United States, their discounted merchandise has remained largely unavailable in Canada.
So, is Aldi coming to Canada anytime soon? The answer might surprise you, given the company’s steady expansion in the US.
Is Aldi coming to Canada?
Aldi has no plans to come to Canada or any Canadian cities. While many market experts predicted the move was inevitable, the company has made no visible moves to expand into Canada, nor issued any statements about its prospects.
You may be wondering why they aren’t coming to Great White North, whether public opinion wants Aldi in Canada or whether there is room for the chain – so read on because I’ve got all the answers you need.
Why isn’t Aldi coming to Canada?
Aldi appears to have set out to conquer the US discount market while ignoring the Canadian market, for a number of reasons.
At the heart of Aldi’s business model is keeping the price of everyday groceries down and stocking people’s kitchens and pantries.
Prices are better in the US, especially compared to smaller regional chains, since Aldi can stay competitive in its price range.
In Canada, however, budget/discount grocery shopping already accounts for 40% of the country’s grocery market.
While American shoppers visit Aldi and are impressed, if not downright shocked, by the low grocery bills, Canadians are harder to impress.
Another reason Aldi isn’t coming to Canada and hasn’t shown any signs of doing so is geography. According to CanadianGrocer.com, there is “a dearth of affordable real estate”.
Aldi takes store placement so seriously that it even lists some core requirements when scouting for a new location through its website.
With a focus on keeping operating costs low (passing the savings on to shoppers, of course), it’s hard to imagine Aldi digging deep into its coffers to find a market they’re not 100% sure will succeed.
Then Aldi also has the example of their main competitor (at least in Europe) Lidl. In fact, Lidl has even set up a tentative headquarters in Mississauga (outside of Toronto), hiring staff and studying potential locations.
But Lidl then canceled the plans, closed the office and fired everyone they hired. A few years later, Lidl opened its first store in the United States. This story may serve as a cautionary tale for Aldi.
Do Canadian shoppers want or even need Aldi?
The Aldi hype factory is so good that even though Canadians don’t really need Aldi stores in their already discount-focused country, they do want them.
One shopper on the Aldi Aisle of Shame Facebook community even commented that she would normally go to an Aldi store in the US (despite being from Canada) but couldn’t because of the coronavirus closing the border. She went to a different country for Aldi!
One commenter on Reddit described himself as “desperately waiting for it [Aldi] Come to Canada. ”
This is likely where Aldi Finds comes into play. No doubt Canadians can find cheap flour, cereal or frozen vegetables, but Aldi finds like specialty pet beds, inflatable outdoor seats or exercise bikes — at surprisingly low Aldi prices — will still entice shoppers.
Where can Aldi set up shop in Canada?
First, Aldi could try Canada’s larger cities: Toronto, Vancouver and Montreal. Together they have a population of 10.5 million. Given Canada’s population density, it’s likely that Aldi will opt for big cities and urban centers, especially initially.
(For the record, Canada’s total population density is four people per square kilometer; the United States has a density of 36.)
To learn more, you can check out our related posts on whether Aldi is expanding to Las Vegas, whether Aldi is coming to Colorado, and when Aldi will be open.
in conclusion
Aldi won’t be coming to Canada anytime soon, and they haven’t shown any signs of planning to do so.
Getting Aldi into a completely different country, especially one as uniquely structured as Canada, where the market is crowded with discount food retailers, might take more analysis and planning, but brace yourself – it’s likely will happens at some point.
