GA Trade Mar-Apr interactive - page 14

S P O T L I G H T S
German American Trade Mar/Apr 2014
14
Youngstrom, President of ALDI
Inc., explains, "At ALDI, we know
that finding great-tasting, whole-
some foods is important to our
customers. With the new SimplyNa-
ture line, customers can get high-
quality, nutritious options at an
affordable price.”
ALDI’s commitment to a healthier
lifestyle does not end at the super-
market shelf: Since the beginning of
2014, shoppers can find tips and
articles from the new ALDI Advisory
Council of nationally-renowned,
registered dietitians at the compa-
ny’s website, the “ALDI fresh”
catalog as well as its Simply Smarter
Living Blog and Facebook page.
With these steps, ALDI’s inventory
draws closer to its sister supermarket
in the U.S., Trader Joe’s,
which has brought healthy,
affordable foods to its
customers since its begin-
nings in Pasadena, California in
1967.
ALDI’s Success Strategy:
Maximum Turnover on
Minimum Space
Both grocery chains are not only
privately owned by German parent
companies, they are also run by the
same family. ALDI – standing for
Albrecht Diskount – was founded in
1913 by brothers Karl and Theo
Albrecht in their hometown of Essen
in North Rhine-Westphalia.
Their retail strategy has remained
largely unchanged over the last
century: Thanks to highly efficient
processes and extreme price sensitiv-
ity, both grocers achieve a much
higher revenue than their competi-
tors. According to Forbes, Trader
Joe’s sells an estimated $1,750 of
merchandise per foot – more than
twice as much as Whole Foods and
75% higher than Walmart.
Their biggest money savers are
private label products. Trader Joe’s
carries 80%, and ALDI even 90% of
its inventory under store-own
brands. This – in addition to buying
in bulk – enables them to hand over
much lower prices to their custom-
ers. As Trader Joe’s put it on its
website, “Every penny we save is a
penny you save.” Both also stock
significantly fewer items: Only 1,300
items are available at ALDI and only
4,000 at Trader Joe’s, compared to
Walmart’s 50-70,000 products in
stock. And ALDI stores are compara-
tively small – with a store size of
15,000 square feet, seven
ALDIs would fit into an
average Walmart.
“At ALDI, we know that finding great-tasting, wholesome foods is
important to our customers. With the new SimplyNature line, customers
can get high-quality, nutritious options at an affordable price.”
Chuck Youngstrom, President of ALDI Inc.
High-speed expansion:
ALDI plans to open new 130 stores per year
in average, up from an average of 80 store openings per year
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