Aldi announces $1.6 billion renovation that will include Chicago-area stores – Chicago Tribune

Discount grocer Aldi will spend $1.6 billion to remodel and expand more than 1,300 of its 1,600 U.S. stores in the next few years, including making more room for fresh and organic produce, as well as dairy, bakery and meat sections, the retailer said Wednesday.

Aldi, whose U.S. operations are based in Batavia, is also in the midst of spending $3 billion on land, facilities and equipment to open, as previously announced, an additional 650 locations nationwide. Last year, for example, it entered the Southern California market.

The store renovations, which also will include more airy ceilings, natural lighting and environmentally friendly building materials, are expected to occur by 2020.

Aldi, which operates in 35 states and has more than 24,000 workers, has about 150 stores in the Chicago area. A location in Plainfield is the first store to be remodeled in the Chicago area. The new store layout will grow from an average of 10,000 square feet of selling space to 12,000 square feet.

Aldi didn't immediately have an answer about how many of the new stores would be in the Chicago area or in what suburbs or neighborhoods.

Known for its no-frills stores, Aldi said shoppers won't see higher prices as a result of the company spending billions on remodeled and new stores.

Aldi's private-label brand accounts for about 90 percent of a store's inventory, which allows it to keep its prices low and enables shoppers to spring for pricier products in the store, the company said.

Grocery shoppers have become more finicky, increasingly reaching for food they believe is natural and fresh, generally trading up for quality and down for staples. Natural and gourmet-type stores have flourished, as have discounters. To beat back competition, traditional grocers, including Jewel-Osco, have overhauled their offerings, particularly at the perimeter of the store where customers hunt for fresh produce, meat and prepared foods.

Aldi said it has added several new product lines that in recent years have become popular, including gluten-free and organic foods and a line of premium baby items. It said it also has made such product improvements as removing synthetic colors and partially hydrogenated oils from Aldi-brand foods.

Aldi last year joined other chains that have replaced junk food with healthier options as the call for healthier food intensifies. Its Chicago-area stores said a year ago that they would stock "healthier" fare, including nuts, trail mixes, dried fruits and granola bars, near checkout lines instead of candy. Candy will still be available elsewhere in the store.

byerak@chicagotribune.com

Twitter @beckyyerak

Read the original here:
Aldi announces $1.6 billion renovation that will include Chicago-area stores - Chicago Tribune