Beyond that, most every Aldi maintains the same assortment of groceries. It will take five years for Amazon to fix.” In California, stores offer a wider assortment of produce compared to other Aldi stores. “Whole Foods has made so many myopic mistakes. Even with the latest markdowns, Whole Foods is “simply unaffordable,” he said. The largest percentage of defectors came from Target, Costco, Kroger (Ralphs), Walmart and Sprouts shoppers, the survey noted.įlickinger said Aldi should worry least about Whole Foods/Amazon.
In the first week of dropping prices, foot traffic at Whole Foods stores increased 17 percent year-over-year, according to a report by mobile data research firm Thasos Group. Once the purchase was complete, Amazon began reducing prices and selling Whole Foods’ private label 365 brand to Prime and Fresh members. The e-commerce giant’s $13.7 billion summer acquisition of Whole Foods Market has given shoppers another reason to shift loyalties.
STATER BROS CURBSIDE PICKUP FREE
Costco began offering two-day free shipping.Īnd, let’s not forget the 800-pound gorilla: Amazon. Walmart is testing curbside pickup, fast app-based returns and remodeling stores to emphasize convenience. Target is adding more beer and wine to grocery aisles, and opening dozens of small format stores. Legacy food retailers are scrambling to survive.Īlbertsons, Vons and Vons Pavilion have merged. That compares to $12 million to $14 million for Albertsons and $17 million to $18 million at Ralphs. In Southern California, Aldi is already making a dent.įlickinger said local Aldi stores are generating $20 million to $22 million per store, per year. The top national players, which include Kroger, Albertsons and Publix Super Markets, are projected to lose 3.5 percent total market share by 2021, according to a 2017 food retailing report by market research firm Willard Bishop.Įven more daunting: Traditional supermarkets and mass retailers (Walmart, Target) are projected to see sales drop a combined 5.5 percent by 2021, according to the Willard Bishop report. Traditional stores such as Ralphs and Albertsons are seeing market share erode at a fast clip. “We just don’t want it to be a secret.” An industry in upheavalĪldi’s march out West comes as the $543 billion supermarket industry is a state of upheaval. People look at this as their little secret,” he said during a recent tour of the chain’s newest store in Garden Grove. The prices are really unbeatable,” said Escuer, carrying a basket of frozen foods, bread, produce and cheese.Ĭindel, who oversees operations in Southern California, said “word of mouth” marketing is Aldi’s bread and butter. When the first three Aldis opened in Orange County last year, he drove to the store in Fountain Valley to give it a shot. The Westminster resident said both are “crazy about the Aldi family.” The 24-year-old California transplant heard about Aldi from his roommate, who is dating a woman from Germany. The discounts and money back guarantees keep him coming back. If Aldi were to describe a typical Southern California convert, that person might be Enrique Escuer. “If someone goes low, we’ll go lower,” said Tom Cindel, group director of operations for Aldi’s Moreno Valley division. stores in Virginia and North Carolina over the summer.įlickinger projects Lidl will hit California by 2020.Īldi is fearless - ready to battle any and all competitors. The latter is Aldi’s biggest European foe - a discounter with a similar assortment of inexpensive, private-label goods. headquarters in Batavia, Ill., is shoring up forces in untapped markets as it enters a head-on battle with Walmart, Amazon and Lidl. Next year, the company said it would open 20-25 stores.Ĭalifornia is part of an aggressive plan to invest $3.4 billion nationwide to grow to 2,500 from 1,700 stores by 2022.įlickinger, who tracks supermarket prices and sales, likens Aldi’s growth to a “military” assault.
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