TrafficCourt

Aldi, A Retailer Actually Looking to Expand

RSS
Now, the U.S. arm of Aldi is cranking up expansion in Wal-Mart's home turf and seizing on the economic downturn to lure consumers to its Spartan stores and cheap groceries. The discount chain will open at least 75 U.S. stores this year, well above its typical pace, including its first Aldi store in New York City.

The company is counting on the economic downturn to crash a traditional barrier to the U.S. grocery business: Americans tend to be loyal to big-name brands.

Store-brand goods generally make up 22% of U.S. food sales in terms of unit volume, according to research by Nielsen Co., while in some European markets, they account for about 30%. At Aldi, 95% of the goods are the retailer's own brands.

Aldi's expansion shows how the tough economy is changing the competitive landscape across industries. Aldi first arrived in America in 1976 and began opening what has now become a collection of 1,000 U.S. stores, mostly in the Midwest and Northeast.

Link.

Please or Register to post comments.

What's TrafficCourt?

Industry news, views and occasional strange stuff.

Contributors

Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
Blog Archive
National Real Estate Investor Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×