Monday 10 August 2015

Aldi's growth strategy on both sides of the Atlantic

Aldi--the German-owned discount grocery chain known for super-low prices and no frills--is expanding across the UK and in the US.

With a UK market share of more than 5% the chain's growth strategy means investing £600m to open 130 additional stores and increase its workforce to 35,000 by 2022. Costs are low, so prices are low.

Bring-your-own-bags to tote groceries home--and if you buy an Aldi's UK bag, the pennies go to the RSPB, aiding a good cause and reinforcing the company's reputation for social responsibility. Aldi UK has attracted more than 1m Facebook likes, 188k followers on Twitter, 7,500 followers on Pinterest and a few thousand followers in Youtube.

Across the pond, Aldi is getting ready to compete even more aggressively with Trader Joe's and other low-price grocery chains. Within a year, its growth strategy calls for 45 new stores in California, where local consumers value both quality and low prices. Unlike the bare-bones assortments of the past, Aldi's is testing organic specialties such as cage-free eggs and chia seeds to differentiate itself and attract new shoppers.

Aldi US is as social as Aldi UK, with 1.5m Facebook likes, a few thousand Youtube followers, 23k Twitter followers and 24k Pinterest followers.