1. About.com
  2. Industry & Trade
  3. Retail Industry

German-owned Aldi Gives U.S. Grocery Stores More Competition in 2010

German-owned Aldi discount food stores will be competing even more with U.S. grocery stores on American soil in 2010. (More on Aldi 2010 store openings below.)
German-owned Aldi Gives U.S. Grocery Stores More Competition in 2010
Barbara Farfan for About.com
With stores in more than half of the states in America, Aldi has established a competitive presence that will grow even larger in 2010. After opening 75 stores in the challenging recessionary climate in 2009, Aldi has announced that it plans to open 25 more new stores in 2010. Aldi stores have fared well when other grocery store chains like Basha's and Albertson's have floundered becuase its no-frills, low-cost offering has appealed to price-conscious consumers. Aldi has a reputation for charging prices that are 10-15% lower than U.S. discount behemoth, Wal-Mart.

Compared to most U.S. grocery store chains, Aldi stores are smaller, have a more limited product selection and a larger percentage of store-branded products. To get Aldi's discount prices, American shoppers have shown that they are willing to tolerate shorter store hours, fewer store employees, and paying a deposit before they can use the Aldi's shopping carts.

Aldi's U.S. stores are currently more successful than the 1,700 stores it operates in its West German homeland. There the company's deep discount model has been recognized as successful and copied by several competitors.

©2012 About.com. All rights reserved. 

A part of The New York Times Company.