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Aldi opened 400+ net new stores in 2025, pushing its global footprint to 13,500+ stores across 19 countries. The expansion is accelerating — not because Aldi undercuts on price (they don't anymore), but because they have the lowest cost-to-serve in the industry.

Aldi's cost-to-serve per sq ft is GBP 18 versus the UK industry average of GBP 42. That GBP 24 gap is reinvested into price (not margin), which keeps the cycle going.

The format that European grocers keep trying to compete with — and keep failing — is the 1,200-1,500 SKU discipline: Aldi's entire model is built on the insight that 80% of grocery spend falls on 20% of SKUs. Cut to 1,300 SKUs, and you can stock each one with enough volume to negotiate manufacturer-level pricing. The result: Aldi private label (which accounts for 90%+ of SKUs) has margin that national brand manufacturers cannot match.

Why competitors cannot close the cost gap: Aldi stores are 1,200-1,800 sq m vs. Tesco Extra at 4,000-6,000 sq m. Aldi has 1 team member per 150 sq m vs. Tesco at 1 per 80 sq m. The store design, the product range, the staffing model — all of it creates a cost structure that competitors cannot replicate by improving operations. They'd need to close stores and rebuild format from scratch.