GA Trade Mar-Apr interactive - page 15

Going from Coast to Coast
at Full Speed
These similarities aside, the expan-
sion strategies of ALDI and of Trader
Joe’s in the U.S., the only market
besides Germany in which both
ALDI offspring are present, could
not be more different:
Trader Joe’s, which was taken over
by ALDI Nord in 1979, currently
has 399 locations in total and plans
to add 16 locations in the near
future. ALDI Inc. in contrast,
which is independently managed
and operated by ALDI Süd’s
Austrian subsidiary Hofer KG, will
add 130 stores per year to reach
1,950 across the nation by 2018.
While it started with locations in
rural areas in the Midwest and
suburbs on the East Coast, it
recently expanded its presence to
competitive markets like Houston,
South Florida and New York City.
California, the home of Trader Joe’s
and where half of its stores are still
located, is next. In addition to new
discount stores, ALDI will build its
regional headquarters and a new
distribution center in Moreno
Valley, CA. The expansion is
expected to create 10,000 new jobs
overall at the grocer's stores,
warehouses and offices.
Jason Hart, President of ALDI Inc.,
counts on its customers to help
spread the news: “When we open a
new store, word of mouth about the
amazing quality and freshness of
the products available at ALDI
spreads quickly from loyal shoppers
to friends and neighbors.”
The sister supermarkets have
not only gained attention from
customers, but also from competi-
tion. In the near future, not just
the ALDI duo, but possibly a trio
of German grocers could be compet-
ing with American supermarket
chains: According to retail magazine
Supermarket News, German
discount giant LIDL is considering
an expansion to the U.S. by 2015 –
starting at the East Coast.
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