ALDI fires $3.4 Billion shot in US Supermarket wars

[A HERETIC I AM]

"German grocery chain Aldi Inc [ALDIEI.UL] said on Sunday it would invest $3.4 billion to expand its U.S. store base to 2,500 by 2022, raising the stakes for rivals caught in a price war.

Aldi operates 1,600 U.S. stores and earlier this year said it would add another 400 by the end of 2018 and spend $1.6 billion to remodel 1,300 of them.

The investment, which raises Aldi's capital expenditure to at least $5 billion so far this year, comes at a time of intense competition and disruption in the industry.

German rival Lidl will open the first of its 100 U.S. stores on June 15. In May, Lidl said it would price products up to 50 percent lower than rivals."

(Snip) "The latest store expansion will create 25,000 U.S. jobs and make Aldi the third-largest grocery chain operator in the country behind Wal-Mart and Kroger Co (KR.N), the German chain said in a statement. Aldi's 2,500 stores would equal about 53 percent of Wal-Mart's U.S. outlets."

http://www.reuters.com/article/us-usa-retail-aldi-idUSKBN193044

[Renew Deal]

1. Trader Joes is better in every way

They are related

[A HERETIC I AM]

2. Not "Related", but wholly owned

https://en.wikipedia.org/wiki/Trader_Joe%27s#History

[Freethinker65]

3. Yep. Many identical products with same ingredients from same country of origin but differing labels

Trader Joe's is usually a bit more expensive. I am lucky to have both nearby.

[A HERETIC I AM]

5. I should say I don't have a dog in this hunt (Edited)

I'm not invested in ALDI, nor do I hold a position in any other major food retailer.

I put this story up because I thought it merited a post in this group. A major international food retailer is doing a massive investment in the US.

Having said that, my grocers of choice and convenience are Winn-Dixie and Publix, here in Jacksonville. Winn Dixie is within walking distance and Publix is an 8 minute drive. I honestly don't know where the nearest ALDI is (OK...A google search shows 14 miles and a 25 minute drive with no traffic) and the nearest Trader Joes is 27 miles away, out on the beach.

[Freethinker65]

7. I understood the post. Many have at least heard of Trader Joe's, but are unfamiliar with Aldi.

I happen to live in an area that has both, along with traditional national grocery stores, big box stores, and independent and ethnic grocers. I shop at all of them depending on sales, convenience, and what I need at the time.
Aldi, like Trader Joe's, carries mostly private label items (yes, they do carry some familiar brands) with some locally produced items. Aldi is no frills and you bag your own items after purchase. Aldi was cash/debit only, but now accepts credit cards.
As for the economy angle, I believe Aldi was one of the first chains to open up new stores in Detroit proper because they saw in was underserved. I have also heard that although non-union, starting pay is very good for the industry. I do not think the Aldi model will replace traditional grocery stores, but they certainly are a welcome addition in my heighborhood.

[Wednesdays]

4. The checkout lane at ALDI is unbelievably fast

They have some kind of secret system, because I can't toss items onto the conveyer belt fast enough to keep up.

No wonder ALDI is starting to beat Walmart to a pulp. Wait times at Walmart checkout lanes averaged me 45 minutes, and equivalent items cost 30 percent more.

[pnwest]

6. It's been about 20 years since

I've lived in a state with an Aldi's, but it remember them being shitty stores with cheap-ass, shitty food. Have they revamped? Someone up thread said they're almost same as Trader Joe's? Couldn't be more opposite- in my recollection.

[A HERETIC I AM]

8. They OWN Trader Joes.

We shall see if they do what's needed to gain new customers and to get people like you back in, eh?

[Freethinker65]

9. Not the same as Trader Joe's....but

Some items are the very same. Trader Joe's is still more upscale- more gourmet/foodie items, more variety of alcoholic beverages, nicer packaging, the items are shelved rather than displayed in their packing boxes, carts are readily available without inserting a quarter, purchased items are bagged for you, etc.

I go to Aldi to get refrigerator and pantry staples that I have tried and liked, and also particular produce items if on sale. It is definitely not the same shopping experience as Trader Joe's, but it is not trying to be.

[customerserviceguy]

10. That's my recollection, too

Limited choices and no-name stuff that tasted like generic. Maybe they've improved in the dozen or so years since I was last in one.

[OnDoutside]

12. They've opened up good quality food to lower income families, but

outside my local store, you'll see top of the range Mercedes parked next to 20 year old wrecks.

[OnDoutside]

11. I have 2 Aldi and 2 Lidl stores within 3 miles of me, and

I prefer Lidl, who have a nice excellent bakery section. However both have moved on hugely from the first time I went to one​ in Belgium nearly 20 years ago. We get a lot of our groceries in Lidl especially.

[DAMANgoldberg]

13. Remodeled Aldi's are worth it.

I live in an economic backwater of Charlotte in one of the few neighborhoods of color with a full-line grocer (Food Lion, recently remodeled). Aldi is about 4 miles North and a godsend. The quality has improved and is comparable to regular store-brand items (not deeply discounted brands) at better pricing that has made FL better. Here Aldi is in virtually all income neighborhoods except "old money/SouthPark". They have even forced Harris Teeter, an upscale grocer owned by Kroger, to be price conscious, something that Bi-Lo, Food Lion, or Winn-Dixie before that could do.

[lamp_shade]

14. Love my newly opened Aldi...

It's where I shop first. Incredible prices. With few exceptions, I'm more than happy with the quality of their goods.
What they don't have I buy at Walmart (directly across the street)
Publix for fresh stuff (bakery and deli... they have the best egg salad and buffalo chicken dip)
Winn-Dixie is closest so I shop there only when I'm in a hurry and need staples.

[beachbum bob]

15. Aldis is an awesome grocery chain which limits choice BUT reduces overall cost to consumers

I have shopped Aldis on and off for 25 years and can safely say, save 40% on our food cost. So I got to bag my own groceries, so I have to put a quarter in to get a shopping cart (that I get back when I return the cart). There is no skimping on quality and almost all the food products are from local US suppliers rebadged under the Aldi storebrands. Right now I can buy a gallon of milk for under a dollar, a loaf of bread under a dollar and dozen eggs under 50 cents......and their produce prices can't be beat. BTW, they do offer organic lines of food too

Walmart, Kroger, Safeway, etc aint going to like it much.

[CozyMystery]

16. The small town I live near has 2 Aldi stores

I shop there first. I like the prices. I've been there so many times, I know which products I like. I like not having to look through so many brands to find the one I want. It's a lot faster shopping trip when I go to Aldi.

Plus, their plastic bags are sturdy and useful for other things. Currently, one of them is under my dog's water bowl. It catches some of the water that drips off his beard. My husband, who has had five strokes, can use the bags to carry things upstairs -- they don't break under the weight of hardcover books.

The employees are friendly and helpful. There aren't many of them, but I can find them easily. The stores aren't that big.

Lately, I've been buying a lot of raspberries and blackberries there. So good! And so cheap compared to Walmart and Giant Eagle.

The shopping cart quarter is a great idea. Where I live, it is common for people to just hand over their carts to incoming customers so they don't have to pay the quarter. The recipient is so pleased with this tiny act of kindness. I have noticed that it is mostly the women who do this.

[CaptainTruth]

17. I have an old ALDI nearby, hopefully it'll be remodeled, it needs it.

What I'm excited about is that I'm finally getting a Trader Joe's on the island. A bunch of us have been bugging them for years & our county commissioners even got involved & contacted the company.

I got hooked on TJs when I lived in CA, but when I moved to FL (Merritt Island) the nearest one was in Orlando, too far for grocery shopping.

[babylonsister]

18. Have you gone

to the one in Cocoa? It's not bad and prices are great. I live in Melbourne, did read about Trader Joe's. Yay, I also am looking forward to that!