The business of the international grocery store chain Aldi is in a state of growth in several directions.
According to information that was made public by the media, in August, the company acquired the supermarket chains Winn-Dixie and Harveys. The implementation of these deals contributed to changing the reputation of the firm as a small grocer.
Experts say that the expansion of Aldi’s ownership structure through the acquisition of two supermarket chains means that the company is moving into the territory of more traditional grocery stores.
Neil Saunders, managing director of GlobalData Retail, noted that all grocers are somehow striving to scale their activities. He also said that Kroger and Albertson are currently signaling their intention to merge. According to him, in the grocery sector, where there is a high level of competition and an extremely low-profit margin, control over the maximum possible part of the market for a particular player is an important task.
In August, Aldi also announced a deal with Southeastern Groceries. As a result of this decision, the portfolio of the international grocery store chain in the United States has been replenished with approximately 400 stores.
Commenting on the acquisition of Winn-Dixie and Harveys, company CEO Jason Hart said that these brands have a long history of presence in the Southeast and have many regular customers in this region. He also said that Aldi is looking forward to the opportunity to start serving these consumers in the coming years. According to him, the current moment is suitable for the development of the company’s growth and noted that the company will help residents of the Southeast to save money when buying products.
Jason Hart announced his intention to add 120 stores located in the United States to the firm’s portfolio this year. Through this solution, the company will be able to increase its share in the overall U.S. grocery market. Currently, many other retailers are experiencing difficulties.
Some experts share the opinion of Jason Hart that the current moment is suitable for the development of growth momentum. According to them, the current inflationary environment is a tailwind for grocers, interest to whose from the part of customers is determined by the price availability of the goods offered.
Industry research in the spring of this year testified that in the United States, 47% of food buyers prefer to shop in stores with the most favorable price offers. Also, 75% of consumers at least sometimes buy food in grocery stores. The results of the study indicate that this practice of purchasing behavior is typical even for those whose personal budget is under pressure.
Aldi has succeeded whereas many have failed. John Clear, Director of consumer and retail sales at Alvarez&Marsal consulting company, noted that scaling the business in the grocery sector at the international level is a difficult task since in new markets it is necessary to ensure brand loyalty and overcome the skepticism of local consumers about unknown firms. For example, the US market is traditionally a territory of difficulties and problems for British retailers.
As we have reported earlier, Walmart Closes 4 Chicago Stores After Years of Losses.