German-based discount grocery chain, Aldi, is planning an aggressive US campaign, which includes 100 new stores in 2008, to join its existing 900 stores, according to company spokeswoman Tina-Marie Adams. It has no plans to acquire other chains and re-brand them.
"The potential and the popularity is there," Adams said. The company's "less is more", seems just the right fit for consumers under pressure from rising energy costs and living expenses, making the time right for expansion, Adams added. The company markets more than 1,000 of the most-frequently purchased household groceries and items in its stores, largely under private labels at about 50% less than other discount retailers.
"There is some overlap in the market they go after and Wal-Mart goes after and probably Kroger a little bit," commented Cindy Claycomb, a marketing professor at Wichita State University." However, Adams stated that: "[Aldi has] been very successful targetingwho are very concerned about prices and will take a little bit less service than you see at a Wal-Mart or a Kroger store."
"Consumers are looking for great food at the lowest prices. As food cost issues mount, as energy costs rise and as a recession looms, they can get value with Aldi…it makes sense when other living costs are going up. People take a look and they think they can save a few bucks if they look at where they're buying groceries.”