Aldi Cuts Costs, Adds Markets
With locations in roughly half of the states in the U.S., Aldi has a lot of room to grow. The limited assortment chain is looking to add another state to its list of places its stores call home with planned units in the Tampa and Orlando, Fla. markets.
As elsewhere, the Aldi model is no secret. The company builds small box stores with a limited assortment of mostly private label products at prices well below what consumers pay in other outlets.
Aldi shoppers bag their own products (pay for bags supplied by the store), pay by cash or debit cards (no credit cards here), and rent shopping carts for a quarter (quarters are returned when the cart is put back).
Aldi, while prices are low, is also known for the quality of its products. The company, which along with Trader Joe’s is owned by the Albrecht brothers, stands behind the quality of the items it sells and returns are of the no-hassle variety.
Dave Behm, vice president of Aldi’s Florida operations, told the St. Petersburg Times what makes the company so successful. “We keep it simple,” he said.
Aldi is looking to open 100 stores in Florida with 40 combined in the Tampa and Orlando areas.
Discussion Questions: What businesses have the most
to fear from an Aldi opening up nearby? What lessons can other operators, perhaps
even those serving a more upscale consumer, learn from Aldi?