A story earlier this summer in Supermarket News reported on Aldi’s strategy and how the discount grocer is transforming itself into a serious competitor in the food retail industry. The author called Aldi a “powerful, perhaps underappreciated, disruptive force in a competitive marketplace.” Here are some examples of what Aldi has been doing.
- Expanding the product mix to include more high-margin, gross profit generators (packaged meats, produce, dairy and frozen products, seasonal merchandise)
- Leveraging total store merchandising (marketing a theme throughout the whole store rather than by department or category)
- Generating profit reserves for driving end-of-month traffic (reinvesting profits from the beginning of the month so they can drive traffic at the end of the month; end-of-month circulars include pages of hot-priced items)