Saturday, August 16, 2014

Aldi, WinCo Position Walmart in the Middle

This marks the fourth year in a row that Aldi has been named the ‘low-price grocery leader’ in the U.S. by Market Force Information Inc. according to its latest survey. With 1,300 stores open and a three year plan to open 650 more Aldi is a serious threat to Walmart, Publix, and Safeway
WinCo Foods with 95 stores is a fast growing low priced competitor who’s products are priced below Walmart in the Western U.S. with a quality integrated Ready-2-Eat and Heat-N-Eat fresh food strategy and is completely unfazed by Walmart.
Consumers shopping habits are shifting and legacy retailers not focused on quality fresh food, fresh prepared, and price are losing market share.  Walmart’s Ready-2-Eat fresh prepared food offerings are more akin to offerings of industry leaders in the 1990’s than today. 
Jason Hart, Aldi President said “However, these latest survey findings prove that a growing number of consumers are choosing to shop at Aldi for more than just low prices." 
Aldi is a global retailer and is garnering market share in Great Britain as well.  Aldi in fact is so successful in Britain that KPKG LLP reported that   “U.K. food sales by value dropped the most in at least 5 1/2 years in the three months through July because of price cuts by supermarkets”.  Will that happen in the U.S.?
Foodservice Solutions® Grocerant Guru™ says “Yes, food prices will be coming down for families in large part because of Aldi and WinCo.  However the efficiency provided from Ready-2-Eat and Heat-N-Eat fresh prepared food had reduced waste while reducing cost per meal for many families.”
While companies the ilk of Whole Foods and Wegmans continue to lead the industry in fresh prepared food quality and options.  WinCo is able to outperform Walmart in large part because of the value and freshness of its fresh prepared food.

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1 comment:

  1. Now Walmart is known as the lowest price grocery leaders in the US. This had actually put up a bad impression on the Walmarts stock market too. Walmart should start working on maintaining its good image in the market.