A German discount grocer has set its sights on becoming the third-largest American food retailer by store count, behind Walmart and Kroger.

Aldi said it plans to invest $3.4 billion to open 900 stores by the end of 2022, giving it 2,500 stores nationwide. The grocer currently operates approximately 1,600 stores in 35 U.S. states. Earlier this year, Aldi announced it would invest $1.6 billion in to remodel 1,300 of its stores by 2020.

Aldi’s $5 billion investment come at a time of intense competition in the supermarket industry, particularly in the discount niche. On June 15, another German discount grocer, Lidl, will make its U.S. debut, opening the first of 20 stores it plans…