German grocery chain, Aldi Inc has announced that it would invest $3.4 billion to expand its U.S. store base to 2500 by 2022, raising the stakes for rivals caught in a price war.
The investment, which raises Aldi's capital expenditure to at least $5 billion so far this year, comes at a time of intense competition and disruption in the industry.
In May, Aldi Chief Executive Jason Hart told Reuters the chain intended to have prices at least 21 percent lower than rivals and would focus on adding in-house brands to win over price-sensitive customers.
Jason Hart, CEO, Aldi, told Reuters, "We're growing at a time when other retailers are struggling."
Hart added, "Aldi's prices were also up to 50 percent lower than traditional grocery chains, a move that appeared to follow rival Lidl's announcement on prices."
The company in a statement said that the latest store expansion will create 25000 U.S. jobs and make Aldi the third-largest grocery chain operator in the country behind Wal-Mart and Kroger Co.
Scott Patton, Head of corporate buying, Aldi, said, "As we continue to expand and grow, our purchasing power continues to increase and allows us to bring products at better prices for consumers."