Tuesday, January 13, 2009

Aldi's in the WSJ!

My favorite grocery store gets some run in the WSJ in an article by John Stoll and Sharon Terlep...

You can't buy nearly everything there. But what you can get-- including most of the staples-- is of good quality and great prices. And the recession is a good opportunity for them to peel away buyers from other, more expensive stores.

They smoke WalMart-- and everyone else-- on food prices. Milk prices just rose from $1.99/gallon (over the last six months or so) to $2.29. Still crushing other options!

German store chain Aldi is so cheap that Wal-Mart Stores Inc. closed its discount outlets in Germany two years ago partly because shoppers found the U.S. giant too expensive in comparison.

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....

Aldi's first arrived in 1976 and began opening a collection of 1,000 U.S. stores, mostly in the Midwest and Northeast....

The push comes as the retailer is running out of room to grow in its German home market, where an estimated 90% of households shop at its stores...

2 Comments:

At January 16, 2009 at 12:25 AM , Blogger shawnloy said...

Hey, something else we have in common (except there's no Aldi's in Scottsburg, so Sav-A-Lot has to substitute)...

Have you ever economically analyzed the Angel Food ministry? Is it equivalent value to Aldi's?

Later...

 
At January 16, 2009 at 6:42 AM , Blogger Eric Schansberg said...

I'm not familiar with the Angel Food ministry. What is it?

Does Sav-a-Lot have its own store brands &/or discounts on name brands? I have only been there for "emergencies".

One other store merits comparison: Sam's has steep discounts on name-brand goods and, like Aldi's, somewhat limited chioce. The result is prices that are competitive with Aldi's (although still noticeably higher)-- and you have to buy in bulk.

 

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