Regular readers of this blog know that Aldi is a no-frills German discount grocery chain that operates at the intersection of low price, high quality, and food discovery according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
The leaders of Aldi like to say: “Poor people must save rich people like too” and they also believe that they are purveying a universally exportable price message to the world.
That said, Aldi, prides itself on a business model that is intentionally different. It appears to be working as Aldi plans to become the third-largest U.S. grocery retailer by store count by the end of this year.
Heather Moore, Loxley regional VP for Aldi, stated, “Our stores are designed to make grocery shopping smarter, faster and easier, and we’ve been voted the price leader for five years running,” said. “We are excited to offer easy access to affordable fresh food and household essentials, as well as a great selection of regional items. Our new Gulf Coast locations will carry local favorites such as Tony Chachere’s Creole Seasoning, Crystal’s Hot Sauce, Blue Plate Mayonnaise, Blue Bell Ice Cream and Luzianne Sweet Tea.”
In case you did not see this new monthly survey, retail sales data firm IRI said it's no surprise that 95% of shoppers are concerned about food cost and inflation. Compared to a year ago, IRI found 90% of shoppers perceive the cost of groceries and household items to be higher now. In an open letter on Aldi’s website titled "Our Price Promise," Aldi U.S. CEO Jason Hart recently addressed rising food costs by telling Aldi shoppers, “No matter what happens in the world around us, Aldi will always be the low-price leader in every community we serve.”
There is more, seems shoppers are listening. According to a new report from foot traffic analytics firm Placer.ai, during March 2022, visits to Aldi locations were up 8% year over year and up 6.1% compared to March 2019, before the pandemic. The report said Aldi’s deepened foot traffic boils down to the “ability to offer high-quality products at significantly lower price points.”
For international corporate presentations, regional chain presentations, educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions. His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert, and public speaking will leave success clues for all. For more information visit GrocerantGuru.com, FoodserviceSolutions.US or call 1-253-759-7869