ALDI has decided it’s full speed ahead and is planning to add 800 stores nationwide. The additions, to be rolled out over the next four years, are a mix of new build-outs and some as part of the company’s recent purchases of Winn-Dixie and Harveys Supermarkets in the Southeastern U.S.
The company says on top of more ALDIs within reach, the real bonus for consumers will be even more communities will find great products at the lowest possible prices during a time when consumers are more focused than ever on saving money.
“Our growth is fueled by our customers, and they are asking for more ALDI stores in their neighborhoods nationwide,” said Jason Hart, CEO, ALDI.
“With up to 40% savings on groceries, new customers are inspired to try us out, and existing customers keep coming back. While price is important, we earn their loyalty by stocking our shelves with only the best products and offering a quicker, easier, and more enjoyable shopping experience.”
Where the stores will be
The Northeast, Midwest, and West will benefit the most. The company plans to add nearly 330 stores in the Northeast and Midwest by the end of 2028. The West will see a lot of the newer locations, primarily in Southern California and Phoenix — and entering new cities, like Las Vegas.
The company's timing is pretty good. Now that Family Dollar is padlocking nearly a thousand stores, those shoppers are going to need somewhere else to shop.
What is it that makes ALDI such a hot product?
The last few years have probably produced a lot of late hours for grocery stores trying to figure out what consumers want in today’s market. The winners were the budget grocery stores and Placer.ai, a research firm that tracks retail foot traffic named ALDI, Grocery Outlet Bargain Market, and Market Basket as the three that made the most out of the situation.
Ethan Chernofsky, senior vice president of Marketing at Placer.ai, told ConsumerAffairs that discount-oriented grocers went right at the problem because they saw it as an opportunity to expand their visit share, due to the lingering sense of economic uncertainty.
“The true question will arise as these economic headwinds dissipate because the more successful these brands are at delighting customers today, the more of these visit share gains they will retain,” Chernofsky said, and that the economic uncertainty works to their advantage.
“But the ultimate success will come down to creating a retail experience that presents true value to the consumer. Critically, it is not a binary situation where these chains rely on a full shift in shopping patterns to succeed. Simply carving out more or the visit share should suffice to drive steady and ongoing success.”
ALDI – the Southwest Airlines of groceries?
In the early days, shopping at ALDI threw some consumers off with things like “renting” a shopping cart and the limited number of brand-name products. But ALDI slowly evolved from the weird kid on the block to the cool kid.
Or what Jim Eckels, growth strategy expert at PA Consulting, likens to being the grocery version of Southwest Airlines. “Both seek to offer their customers a good value and customer-centric experience that is enabled by efficient operations and friendly, motivated employees,” Eckels told ConsumerAffairs.
“By simplifying their supply chain and offering a 'no frills' shopping experience, ALDI is able to keep their costs down and pass these savings on to the shopper. Thanks to ALDI’s curated assortment, shoppers appreciate that they can find what they are looking for quickly without being overwhelmed by choices in the aisle. ALDI shoppers also value the helpful and efficient service provided by the friendly ALDI staff."
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-03-14 19:43:00
