The Aldi Expansion Sees Value Added to the Brand's US Locations
Rebecca Byers — December 17, 2015 — Lifestyle
References: thenewdaily.au & wsj
With the Aldi expansion in the United States in full-swing, the German discount grocery retailer is giving its stores an overhaul to entice a new type of customer.
While it may seem like an upleveled store experience would mean increased operating costs, Aldi seemingly invests in the right areas by making the overall store experience more attractive, and therefore enticing new customers. Notably, this allows the brand to reinvent the experience of its shoppers without changing its everyday low pricing strategy.
A longstanding champion of the everyday low pricing (EDLP) strategy, Aldi keeps overhead low by using shelf-ready packaging that is wheeled into its rightful place rather than needing to be unpacked by hand, as well as keeping staffing low and designing stores so that they are easy to stock.
While it may seem like an upleveled store experience would mean increased operating costs, Aldi seemingly invests in the right areas by making the overall store experience more attractive, and therefore enticing new customers. Notably, this allows the brand to reinvent the experience of its shoppers without changing its everyday low pricing strategy.
A longstanding champion of the everyday low pricing (EDLP) strategy, Aldi keeps overhead low by using shelf-ready packaging that is wheeled into its rightful place rather than needing to be unpacked by hand, as well as keeping staffing low and designing stores so that they are easy to stock.
Trend Themes
1. Value-added Store Experience - Discount retailers can attract new customers by investing in store experiences without changing their pricing strategy, as seen in Aldi's expansion in the US.
2. Shelf-ready Packaging - Using shelf-ready packaging can help discount retailers keep operating costs low, as demonstrated by Aldi's strategy.
3. Efficient Store Design - Designing stores to be easily stocked and keeping staffing low can help discount retailers maintain an everyday low pricing strategy, as exemplified by Aldi's stores in the US.
Industry Implications
1. Discount Grocery Retail - Discount grocery retailers, like Aldi, can benefit from investing in value-added store experiences and efficient store design to attract new customers and reduce operating costs.
2. Packaging - Shelf-ready packaging can be a disruptive innovation opportunity for companies looking to provide more efficient solutions for retailers.
3. Retail Store Design - Efficient store design can be a disruptive innovation opportunity for companies looking to provide cost-effective solutions for discount retailers, like Aldi.
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