Business & Money
Photo: DPA

Bare-bones Aldi expands as US shoppers struggle

Published: 24 Aug 09 14:03 CET
Online: http://www.thelocal.de/money/20090824-21453.html

German discount supermarket Aldi recently opened its 1,000th store in the United States, as American shoppers fall on hard economic times.

“When money is tight, only the price counts,” news agency AFP reported on Monday. “In the crisis the service-spoiled Americans are suddenly going to Aldi.”

According to sector analyst Retail Planet, Aldi increased sales by 21 percent in 2008. The bare-bones chain is owned by Germany’s richest men, the brothers Theo and Karl Albrecht.

But American customers still have to get used to certain German shopping rules, such as paying a deposit for the use of a shopping cart and paying for plastic shopping bags. They also have to contend with the stripped-down retail space and 1,400 mostly generic items displayed on unglamorous wood palettes.

It’s far from the glossy retail presentation that Americans have become accustomed to. But according to a recent poll by pollster Rasmussen Reports, 51 percent of Americans are spending less on consumer goods, presenting an opportunity for what Aldi calls its “less is more approach.”

The company, which also owns the popular Trader Joe’s grocery stores, plans to increase their retail spaces by some 10 percent each year, AFP reported. Aldi, which first launched in the United States in Iowa in 1976, added 100 stores last year alone.

Ten new stores recently opened in Florida, where unemployment rates have spiked, a situation a regional Aldi manager there called the “perfect time” for expansion. Meanwhile the company plans to open 25 new stores in Texas, where a $50-million distribution centre is also under construction.

“The store isn’t very pretty,” housewife Tammy Forman said while shopping at a Hyattsville, Florida location. “But it’s cheap.”

While US unions have criticised the retailer for blocking their efforts, Aldi has defended their actions saying their workers have “sufficient pay and social benefits.” Indeed, the company provides health insurance for workers who log more than 20 hours of work per week – something market leader Wal-Mart does not do for its workers.

AFP/The Local (news@thelocal.de)

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Your comments about this article:

14:32 August 24, 2009 by Portnoy
Abandon all hope, ye who enter here.

Like Wal*Fart, Aldi is a false god.
14:59 August 24, 2009 by The-ex-pat
Out of idle curiosity I went into an Aldi whist on holiday in the States this summer. The goods available was not as The Local reports generic products, but name brands. The fruit and veg was far better to that on offer in a German Aldi. The fruit and veg we get here in Germany sometimes looks like it is from the previous week! In this Aldi (in Winston Salem N.C) it was fresh and well presented, something that is not the case here. If I lived in the USA, and I had a local Aldi I would be in like a shot. The isles are wider, the staff friendlier and even though you still have to remove your product from a box, the way everything was on display was more inviting.
15:00 August 24, 2009 by Portnoy
How long have you worked for Aldi, Ex? Also: It's Aisle.
15:18 August 24, 2009 by bayern
My wife shops there often. Milk, eggs and some veggies are cheaper then the regular store. Meats and other stuff comes from the regular grocery store. I will say that the beer is good, better then most of the US brands and cheaper.
09:22 August 27, 2009 by The-ex-pat
Portnoy,

No I don't work for Aldi!

When I see something that is good, I don't put it down just because I can!

And publicly correcting someone's spelling or grammar who you do not know, from the safety of your bedroom! I have struggled with dyslexia all my life. Every letter or email I write is not a small undertaking and you feel the need to correct me..............you self important little "§$%&/(!!
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