Rising grocery prices are pushing US customers toward cheaper stores like Aldi

• More US customers are shopping at Aldi this year, based on foot traffic data.
• Grocery prices are increasing at the fastest rate in 40 years, pushing customers towards deals.

Rising grocery costs for staple products are going up, and that's good news for discount chain Aldi.

Aldi monthly customer visits are up over year over year and over 2019 levels, according to new data from foot traffic analysis firm Placer.ai. Monthly visits were up over 30% over the previous year from April through August 2021, with continued growth up through the most recent data from March 2022.

Aldi is a discount grocery chain founded in Essen, Germany in 1961. In 1976, the company opened its first US location in Iowa and today it has more than 2,000 stores in 36 states. The chain has found a successful niche among budget-conscious shoppers in the US.

Aldi has focused on US growth recently, and in 2020 it became the fastest growing grocery chain in the US. The chain plans to open 150 US stores in 2022, plus a new distribution center in Alabama. These openings would put Aldi on track to become the third largest grocery chain in the US, behind only Kroger and Walmart.

Aldi shoppers are also shopping at Walmart less than before. In the beginning of 2019, more than 80% of Aldi customers were also shopping at Walmart according to Placer.ai data. As of the first quarter of 2022, that number was down to 74.6% of Aldi customers.

Aldi had lower prices than Walmart in most grocery categories in a recent price comparison from Insider. Aldi won out on produce, pantry staples, and eggs. The biggest difference was in meat, with potential savings up to 60 cents per pound on some items.

Inflation is at its highest level since 1982, and shoppers are feeling it at the grocery store. Prices for food at home, which includes groceries, have risen 13% since the beginning of the pandemic, according to the Consumer Price Index. The rate of price increases month to month have increased since the beginning of 2022. Milk and meat prices have gone up at even faster rates, with beef up 16%, pork up 14.1%, and eggs up 13.1% over January 2021.

Rising grocery prices seem to be pushing customers towards discount stores like Aldi, which trades well-organized shelves and grocery bagging services for low prices. Some experts say there are signs inflation pressures could be easing, and it remains to be seen how further price changes would impact Aldi's traffic.

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