Aldi Opens Manhattan Store in Underground Space Beneath Luxury Apartments

Aldi opened a store in an underground parking lot beneath The Ellery luxury apartment complex in Manhattan. The location sits hidden from street view, with the building's website omitting any mention of the grocer in favor of higher-priced neighbors such as Whole Foods.

Mary Porter, 79, a longtime Manhattan resident, visited on an early Tuesday afternoon and bought a $4 jar of almond butter that normally costs $22 in her neighborhood.

She filled a basket with fresh spinach and organic raspberries before taking the subway home. The cheapest rent in The Ellery starts at nearly $5,000 a month. The opening belongs to Aldi's $9 billion expansion that will add 800 stores across the United States over five years, with a focus on dense urban markets.

The company entered the US market in 1976 and now runs nearly 2,800 stores. It holds 2.9 percent of the US grocery market, compared with Walmart's roughly 20 percent share. Location data from Placer.ai shows Aldi drawing shoppers with household incomes between $75,000 and $125,000.

RJ Hottovy, the firm's head of analytical research, said persistent inflation has prompted middle- and higher-income households to trade down. In the UK, where Aldi entered in the 1990s, the chain now ranks as the fourth-largest grocer with 10. Kelvin Dozier, a Brooklyn resident, switched to the new Manhattan site for its brighter lighting and permanent appearance.

Ralph Montenegro, visiting for the first time, praised prices on staples but said he still prefers Trader Joe's and natural organic products. Dustin York, an associate professor at Maryville University, noted that Aldi stocks about 80 percent of a typical big-box retailer's assortment through limited private-label goods.