Aldi: The future looks bright, but…

Aldi is one of the fastest-growing food retailers in the country, with vast areas yet to be developed. I comment below (from a recent RetailWire discussion) about some of Aldi’s innate strengths:

Aldi has some key competitive advantages that should continue to propel its growth. First, its assortments are tightly edited and competitively priced. And its real estate strategy can “travel” far from the lower-income neighborhoods where it began to build its name, to more affluent shopping areas with plenty of development opportunities for small-footprint stores.

Perhaps the biggest threat on the horizon is Walmart, especially if it decides to speed up the rollout of its own small-format stores. But both stores have an innate advantage over other competitors in terms of a low-cost operating model.


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