Discounters across North America are entering a new phase of expansion and experimentation. In both the US and Canada, leading players are opening more stores, testing new formats, upgrading digital capabilities and leaning harder into value messaging. The result is a structurally more competitive discount landscape that is reshaping how and where shoppers meet their everyday needs.

Expanding networks with rapid store expansion

Discounters across North America are scaling at pace, with major retailers committing to significant new space.

ALDI plans 180 new US stores in 2026, supported by new distribution centres in Florida, Arizona and Colorado, plus market entries such as Maine and a 50‑store plan for Colorado. Dollar General will add 450 US stores and expand into Mexico, concentrating on underserved rural markets. Save A Lot is accelerating growth through its licensed model, using remodels and targeted openings to strengthen its presence in underserved neighbourhoods.

In Canada, Loblaw will invest $2.4bn to open 70 new stores, with No Frills central to its discount strategy. Metro continues to expand Super C and Food Basics, while Empire’s acquisition of Mayrand extends its reach into value‑oriented wholesale and bulk missions. Future expansion is increasingly shifting toward urban locations, such as Metro’s new Food Basics openings in denser city neighbourhoods. This reflects rising demand for accessible discount options in high‑footfall urban areas.

Together, these moves are shifting the value landscape as discounters push deeper into rural communities, smaller cities and suburban catchments once dominated by traditional grocers.

New and improved formats broaden missions

Discounters are evolving their formats to capture more missions and larger baskets.

Dollar General is piloting a new store design built for browsing and treasure‑hunt missions, while also rolling out larger 8,500 sq ft stores that support broader assortments in categories such as health and beauty and a stronger fresh offer. Save A Lot is modernising its estate through remodels that sharpen private‑label presentation and improve navigation, helping it compete more effectively with regional grocers and hard discounters.

In Canada, No Frills has opened a “next‑gen” store in Komoka, Ontario, featuring a refreshed exterior and interior that blends timber and steel to create a warmer, more modern shopping environment shaped by shopper feedback. Improved navigation and a more pleasant in‑store experience can also support higher visit frequency by making quick, top‑up shops easier while reinforcing the value message if prices remain competitive. 

Format innovation is enabling discounters to move beyond price into more discovery‑led, mission‑specific propositions without losing their core value credentials.

Digital, delivery and subscriptions enhance the value proposition

Discounters are strengthening their digital capabilities to make value more convenient and personalised.

ALDI has revamped its website and app with personalised recommendations, shoppable recipes and better curbside and delivery integration, supporting its rapid physical expansion. Its partnership‑led ecommerce model, including third‑party delivery, extends reach without adding cost and complexity.

Dollar General is expanding same‑day delivery in rural areas, positioning itself as a low‑price option for quick‑need and top‑up missions where ecommerce penetration has been lower. It is also piloting a subscription programme, signalling a shift toward more structured loyalty in a channel traditionally driven by transactional value.

As digital and delivery become more embedded in discount, the channel is better placed to compete for planned, repeat and higher‑value missions, not just unplanned or distress purchases.

Wholesale, bulk and non-food discounters add new pressure

The definition of discount is widening as wholesale, bulk and non‑food players intensify competition for value‑seeking shoppers.

Empire’s acquisition of Mayrand adds a cash‑and‑carry format that serves both professional and value‑focused households, extending Empire’s reach into bulk missions and sharper unit pricing.

European non‑food discounter Action plans to enter the US with a low‑price, treasure‑hunt model that has been highly disruptive in Europe. Its arrival will increase pressure on discretionary spend and influence shopper expectations around discovery and value.

These developments mean value competition is no longer confined to traditional grocery discounters. Suppliers now face a more fragmented, multi‑format environment where bulk, non‑food and hybrid models all compete for share of wallet.

What does the expansion of discount mean for suppliers in the region?

For suppliers, the commercial imperative is to adapt quickly to a discount landscape that is expanding, fragmenting and becoming more mission‑driven. Stronger private‑label partnerships will be essential as retailers sharpen their private‑label strategies, and reliable, efficient supply chains will become a key differentiator as networks scale. Suppliers that can flex assortments, innovate for value, and support retailers’ digital and in‑store upgrades will be best positioned to secure space and win share as discount gains momentum.

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