Aldi has launched grocery delivery at all U.S. stores through a partnership with Instacart. The service will cover 5,000 ZIP codes in 35 states by Thanksgiving, including San Diego, New York City, Miami, Raleigh, N.C. and Minneapolis.
The program had kicked off with pilots in Atlanta, Dallas, Los Angeles and Chicago that garnered positive responses from shoppers. Instacart can deliver fresh food from Aldi stores in as little as one hour.
Aldi has been expanding in 2018, investing more than $5.3 billion to remodel and expand its store count to 2,500 by the end of 2022. The retailer also expanded its selection of fresh, organic and easy-to-prepare options by 40% in August.
The growth comes at a time of intense competition among grocery retailers. Kroger has been making multiple investments in technology, while Walmart is working to extend grocery delivery to 40% of the country. Amazon also has entered the game through delivery at Whole Foods stores.
“Despite its well documented moves in grocery, this competitive landscape should not be viewed as Amazon versus everyone else,” said Jack O’Leary, Senior Analyst at PlanetRetail RNG in commentary sent to Retail TouchPoints. “The investments made by Walmart, Kroger, Target and others in curbside pickup and home delivery have also raised the competitive stakes for all U.S. grocery players. Shopper expectations for quick and convenient fulfillment options via click and collect and home delivery are being established, and most top retailers are investing in these capabilities accordingly.”