Why Do Some States Still Not Have An Aldi?

With the rising cost of groceries, many have decided that budget-minded stores like Aldi are a necessity to balancing the family food budget. Unfortunately, not every state gets to enjoy the low prices, relatively high-quality products, and streamlined shopping experience of an Aldi. Some states like Alaska, Hawaii, Colorado, and others in the West and Pacific Northwest are without the German retailer. Despite an aggressive five-year strategy for growth, the discount supermarket chain is not seeking to expand its presence in these areas, either, as shipping costs and a lack of prepared local suppliers have made keeping Aldi's famously low prices a tough proposition.

That doesn't mean the grocery chain isn't planning to expand. Aldi intends to add over 225 new stores in the United States in 2025. This includes growing its already-existing presence in the Northeast and Midwest, while the Aldi banner is set to pop up in more locations in Louisiana, Mississippi, Alabama, Georgia, and Florida as well.

So why can't Aldi just get it together and set up stores in places like Hawaii? Its non-presence in many states has to do with the tricky matter of distribution networks. Two states, Alaska and Hawaii, pose a pretty significant shipping challenge; because they're located outside of the 48 contiguous states, getting stuff there requires a longer travel time and therefore higher costs (this is also part of the reason why neither state currently has a Trader Joe's). Those expenses are normally passed on to the consumer, but that goes against the pricing strategy established by Aldi.

Another problem here is a lack of suppliers. When you step into an Aldi, you'll discover very few national brands. Refraining from stocking big names helps the retailer keep operating costs down, as does working with local suppliers as much as possible to reduce travel time and costs. The closer a manufacturer is, the less travel time and packaging is required, keeping costs low. Currently, those networks simply aren't in place for some regions.