Aldi and Lidl looking to shake-up US grocery sector

Aldi and Lidl’s decades-long supermarket battle in Europe is moving to the US, adding to the competitive pressure in an industry embroiled in a deflation-fuelled price war.

Aldi yesterday said it plans to spend $3.4bn (€3bn) in the US over the next five years to open 900 supermarkets. The investment comes as its German discount rival, Lidl, prepares to open its first US stores this week, with plans for up to as 100 by the summer of 2018.

The US expansion by the German private-label giants could put more pressure on conventional domestic retailers such as WalMart and Kroger to lower their prices.