Aldi

German retailer Aldi plans to make an impact in the US market.

Unlike most American grocers, Aldi has a smaller footprint (10K square feet), with fewer SKUs, it charges for bags (5-99¢ depending on the size) and requires a deposit on shopping carts (25¢). It carries few national brand-name products, and doesn’t accept either checks or credit cards. It relies on prices “up to 50%” below other supermarket chains. The company achieves its value proposition by skipping the other services its competitors offer like banking, pharmacies, bagging clerks, check cashing, or photo processing.

Like a good German retailer, it isn’t open 24 hours a day, and doesn’t redeem manufacturers’ coupons. About 40% of its selling space is devoted to fresh, refrigerated or frozen foods highlighting 1,400 “fast-moving” items (95% Private Label). It’s no surprise customer loyalty cards are nowhere to be found (Whole Foods also eschews loyalty programs). Aldi currently has 1,000 U.S. stores and plans to add 80 more in 2009.This blog includes excerpts from a weekly round-up of food industry & food licensing news provided free to Broad Street Licensing Group's clients, and as a paid subscription service (6 months $695; 1 year $1,125).

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