Aldi Expands Footprint by Acquiring Select Big Lots Locations Amid Retail Restructuring

The discount grocery chain Aldi has strategically acquired a limited number of former Big Lots locations, marking another chapter in the ongoing retail landscape shifts following Big Lots’ Chapter 11 bankruptcy filing. The move underscores Aldi’s continued growth strategy and its ambition to capture a larger share of the value-focused grocery market.

Big Lots’ decision to seek bankruptcy protection in September 2024 triggered a cascade of events, including the closure of numerous stores across the country. The closure presented an opportunity for other retailers looking to expand their reach and capitalize on strategically located real estate.

Several companies have since swooped in to acquire the leases of these shuttered Big Lots stores, signifying a reshuffling of the retail deck. Tractor Supply, Ollies Bargain Outlet, and Burlington are among the prominent players who have seized the opportunity to expand their physical presence by securing leases for former Big Lots locations.

Aldi’s entry into the fray further solidifies this trend, as the discount grocer joins the ranks of retailers seeking to leverage Big Lots’ restructuring for their own growth strategies. Aldi’s acquisition, though limited to a handful of locations across three states, signifies a calculated move to expand its footprint and cater to a growing consumer demand for affordable groceries.

The circumstances that led to Big Lots’ bankruptcy filing and subsequent asset liquidation provide crucial context for understanding these recent acquisitions. In late 2024, Big Lots sold leases to more than 460 stores to Gordon Brothers Retail Partners, a Boston-based asset liquidation firm. This transaction effectively placed the properties up for sale, creating a competitive market for retailers seeking to expand their brick-and-mortar presence.

Variety Wholesalers emerged as a significant player in this acquisition process, securing more than 200 locations as part of the deal with Gordon Brothers Retail Partners. The company embarked on an ambitious plan to reopen these stores, starting with an initial wave of nine locations on April 10. A second wave of store reopenings followed on May 1, with plans for 70 more stores to open on May 15. The company intends to execute another round of reopenings in June, followed by a nationwide grand opening event slated for the fall.

Bankruptcy documents dated May 9 provide further details on the specific Big Lots locations acquired by Aldi, offering valuable insights into the grocer’s strategic site selection. The document underscore the deliberate nature of Aldi’s expansion efforts and the company’s focus on identifying locations that align with its target market.

Aldi’s expansion plans extend beyond these acquisitions. The discount grocer has announced plans to open over 225 new stores, further solidifying its position as a major player in the grocery retail industry.

The restructuring of Big Lots has created a ripple effect across the retail landscape, with various retailers stepping up to fill the void left by the company’s downsizing. Variety Wholesalers’ acquisition of 219 Big Lots stores and two distribution centers represents a significant expansion for the company. Ocean State Job Lot, a Rhode Island-based retailer, announced in March its intention to acquire 15 Big Lots locations in several states across the Northeast region, further expanding its footprint.

Ollie’s Bargain Outlet announced its intentions to acquire 40 former Big Lots stores earlier in February, while Burlington Stores, Inc. acquired 12 Big Lots locations in eight states. The diversified nature of these acquisitions highlights the breadth of retailers seeking to capitalize on the opportunities presented by Big Lots’ restructuring.

Tractor Supply also confirmed in early May that it had purchased 18 Big Lots leases across 15 states, demonstrating the company’s desire to expand its reach and cater to the needs of its target customer base.

The acquisition of Big Lots locations by Aldi and other retailers reflects the evolving dynamics of the retail industry. As consumer preferences shift and the competitive landscape intensifies, retailers are constantly seeking new ways to expand their reach, optimize their store networks, and deliver value to their customers.

Aldi’s strategic acquisition of select Big Lots locations signifies a calculated move to strengthen its position in the discount grocery market. By capitalizing on the restructuring of Big Lots, Aldi is able to acquire strategically located real estate at a potentially favorable price, allowing it to expand its reach and cater to a growing consumer demand for affordable groceries.

The ongoing acquisitions of former Big Lots locations by various retailers highlights the resilience and adaptability of the retail industry. As some retailers face challenges and restructuring, others seize the opportunity to expand their presence and capitalize on changing market dynamics. The long-term impact of these acquisitions on the retail landscape remains to be seen.