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Does a 'posh' Aldi make sense in in the U.S.?

Written by RetailWire Staff

Aldi could someday shed the budget in-store experience that has made it famous in favor of something a little more upscale, that is, if its new layout currently being tested in Australia ends up being a hit with shoppers.

The New Daily reports that the new store format — which has been rolled out in four Australian stores over the past six months — offers better lighting, improved checkouts, large silver freezers and better product displays. The article describes the look and feel of the new Aldi's outlets as "posh," which is a far cry from the classic Aldi look. The grocer keeps costs low by stocking shelves with boxes of product that can be left where they are, allowing for quicker stocking and giving the impression more of a warehouse than a conventional grocery store. Aldi intends to reopen four additional stores in Australia with the new layout soon.

The German-based grocery chain, which has long catered to low-price shoppers, has made other recent changes indicating that it might be trying to alter its image. In August, Aldi announced that it was testing various popular organic and natural food items as part of its product selection.

Aldi produce aisle
Photo: Aldi

In the case of the look and feel of the store, as was the case when it announced its intent to stock healthier offerings, Aldi has stated that it is still committed to keeping prices low. According to a Yahoo Finance article, an Aldi spokesperson indicated that prices will not increase as a result of the store's new look, and that the grocer will always be a limited discount retailer.

At the same time, a New.co.au story indicates that Aldi is indeed rolling out the new layout with an eye towards courting middle- and high-income shoppers. The story states that, according to a statement from Aldi Australia, only 30 percent of its shoppers in 2014 came from households that made less than $45,000, and the number of high-income shoppers making $90,000 or more per household had increased 6.7 percent since 2011.

The question of whether the new layout will come to all Australian Aldi locations seems to still be up in the air. So is the question of some of the features could be implemented in U.S. locations, or if Aldi is entertaining the notion of an upscale concept alongside its regular stores. Aldi U.S. was unable to comment to RetailWire on the potential rollout of the new store layout in any U.S. Aldi locations.

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