Aldi is taking steps to become the third largest grocery store chain in the United States in terms of stores, trailing only Wal-Mart Stores, Inc. and Kroger Co. The company on June 12 said it will invest $3.4 billion in capital to expand to 2,500 stores nationwide by the end of 2022. The retailer currently operates more than 1,600 U.S. stores in 35 states and is in the midst of a $1.6 billion program to remodel 1,300 stores by 2020.

We pioneered a grocery model built around value, convenience, quality and selection, and now Aldi is one of America’s favorite and fastest growing retailers,” said Jason Hart, chief executive officer. “We’re growing at a time when other retailers are struggling. We are giving our customers what they want, which is more organic produce, antibiotic-free meats and fresh healthier options across the store, all at unmatched prices up to 50% lower than traditional grocery stores.”

Over the past several years Aldi has continued to expand its offerings to include more fresh foods and gluten-free options. Aldi also said it was the first grocery store to offer all of its exclusive products free of certified synthetic colors, added trans fat and added MSG. The retailer’s stores are smaller than traditional supermarkets, consisting of about five aisles in a 12,000-foot space.

“We have passionate fans who know Aldi offers a smarter way to feed their families in a modern, convenient and easy-to-shop environment,” Mr. Hart said.

Aldi’s expansion plans come just a few days before German-based Lidl will open its first of 100 U.S. stores on June 15.