"Aldi Store Closings Double As Biggest Grocery Stores In America Face Mass Shutdowns"

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"Aldi Store Closings Double As Biggest Grocery 

Stores In America Face Mass Shutdowns"

by Epic Economist

"Some of the biggest grocery chains in America are in the process of closing thousands of stores right now, and discounter Aldi is one of them. Even though Aldi is considered one of the fastest-growing retailers in the country, the industry giant hasn’t been able to increase profitability in some struggling locations. And as it watches its competitors reducing their brick-and-mortar footprint in preparation for more economic turbulence, the company has decided to follow the same move. According to a new analysis, the number of store shutdowns announced by the discount chain rose by 50% year-over-year. That means a lot of shoppers are losing access to affordable grocery prices at a time food inflation is still soaring. But Aldi closures are just a symptom of something much worse that is rapidly spreading across the entire sector.

In June and July, there was a flood of reports of sudden Aldi store shutdowns across the country. According to Retail Data Insights, Aldi store closures doubled in the past year. Researchers found that between January and June 2022, and January and June 2023, the number of shutdowns conducted by the chain increased by 52%, resulting in a total of 178 closures across 17 states.

That is a major indicator that the food retailer is reassessing its brick-and-mortar portfolio to get ready for more volatility in the final stretch of 2023, and into 2024. However, it’s important to note that these closures are not indications of the retailer’s total collapse, but a sign that conditions are souring even for the biggest grocery chains in America.

At the moment, another problem is also upsetting Aldi customers. They have been finding bare shelves and empty freezers in several stores. Supplies of bread, produce, meat, dairy, and other staples are running out because of "technical supply chain issues," according to the grocery chain. The Aldi Reviewer reports that the chain is facing multiple product shortages that may vary according to the area. Some of the most commonly cited stockouts are sour cream, ricotta cheese, saltine crackers, spaghetti noodles, canned cat food, blossom tampons, string cheese, frozen chicken, sausage, bakery items, hash browns, fresh garlic, apple juice, frozen pancakes, and various types of fresh meat.

In the coming months, more people may struggle to get the food they need, especially as affordable grocery stores continue to close. Food is a bare necessity, and there will always be a demand for it. That’s why during economic downturns, grocery is typically the only sector that stays strong. But this time around, things are vastly different. Major chains are reporting mass store closings, and facing challenges to improve performance and profitability to continue supporting their business. Ultimately, Aldi’s decision to permanently shutter some locations is a matter of survival in this highly competitive industry. And if even the biggest players are in survival mode, that means everyone else is in deep trouble."

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