W. Frank Dell II, CMC

Aldi Not Messin' Around in Texas

March 10, 2010

FROM RETAILWIRE:
Limited assortment grocer Aldi plans to open its first 27 stores in Texas this spring as part of the chain's aggressive growth strategy in markets across the country. How is Aldi affecting how other grocers go to market in the U.S.?      [more...]

Aldi runs a great operation. Some newer stores I visited were a great improvement over years ago. Aldi should be viewed as an alternative channel just like clubs. They attract the lower income segment, but also the thrifty medium income segment.

Aldi, Save-A-Lot and the dollar formats are a real challenge to the traditional supermarket. Supermarkets that have this income group in their target market will have to work harder to keep them. The more likely result will be some lost sales, but no reduction in customer count. Only a reduction in transaction size.