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It's quite impressive how things have turned. Not long ago Walmart was about to disrupt the German supermarket landscape. They even tried to cut prices to below
by starbugs 7y ago
It's quite impressive how things have turned. Not long ago Walmart was about to disrupt the German supermarket landscape. They even tried to cut prices to below market cost to conquer Aldi, Lidl, and the other big discount supermarket chains. After a couple of years they gave up and left. Now Aldi appears to be "fighting back" successfully in the US.
The history of Aldi's efficiency [0] is pretty impressive. It actually started with two brothers nearly going broke with their small grocery store. Then they realized that if they'd reduce the diversity of goods they offer and instead sell only the most common goods in bulk, they could undercut the competition's prices. This concept was so successful that it led to a multi billion dollar business which is still dictating the prices of common groceries in Germany.
Still there are other supermarket chains that have adapted to the Aldi strategy and are actually causing growth issues for Aldi. Their concept is to offer basic goods at the same price as Aldi does, then upsell more special and higher price items while offering a better shopping experience. I guess that's what's going to happen in the US as well eventually.
[0] https://en.wikipedia.org/wiki/Aldi#History https://en.wikipedia.org/wiki/Aldi#History
- ww520 7y agoQuite an insight. Costco has the similar product strategy with narrow product offering, and it's doing quite well.
- Tsiklon 7y agoOn some level I rather like the idea that Aldi, after fending off Walmart on their home turf are now making successful inroads in America in an effort to take Walmart's lunch.
- FabHK 7y agoIt's not uncommon in Germany to go to Aldi first, then buy everything that you could't get at the "full service" more expensive super market next door.
- lqet 7y agoIt's the only reasonable thing to do. REWE / Edeka / ... also have standard groceries (yoghurt, cheese, pasta, cans of tomatoes, corn, etc) from their discount brand which cost exactly as much as the Aldi product, but they are usually vastly inferior in taste and quality. Just go to REWE and buy a can of ja! corn. It tastes like somebody yellow-painted puffed rice.
- user5994461 7y ago>>> They even tried to cut prices to below market cost I highly doubt that. It's illegal to sell under cost in Europe.
- starbugs 7y agoIt wasn't back then. Guess why the German federal court made the original decision to stop selling under cost in 2002 [0]. Yep, Walmart. [0] https://www.handelsblatt.com/archiv/dauerhafter-verkauf-unter-einstandspreis-verboten-bgh-schiebt-riegel-vor-den-preiskampf/2208904.html https://www.handelsblatt.com/archiv/dauerhafter-verkauf-unte...
- user5994461 7y agoYou're giving undue credit to wallmart. It was already illegal and it's been for a long time. I can find articles on Aldi, Lidl and Wallmart paying fines for that in 2000. My German is not good enough to browse the laws. It seems prohibited in Spain since 1991, whereas France is at least 1986. https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=952CA3E9D100ADCC3AC230BDF8B300E2.tplgfr29s_2?cidTexte=JORFTEXT000000333548&dateTexte=20000920 https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=952...