Aldi has played a leading role in the German retail sector since its launch. The strategy of the food giant also seems to work in another country. In the U.S., Aldi will soon be more successful than in its home country Germany.
According to a forecast by market researcher Edge by Ascential Aldi in the U.S. could generate more sales next year than Aldi Nord and Aldi Süd in Germany combined. This year, sales are estimated to amount to $33.4 billion (€31.1 billion), in America to $32.5 billion (€30.1 billion).
But this should change as early as next year. According to the calculations of Boris Planer, an economist at Edge by Ascential, revenues in 2021 are expected to climb to $34 billion (€31.5 billion) in Germany and even to $35 billion (€32.4 billion) in the U.S.
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Aldi could be more successful abroad than in Germany
Aldi is constantly testing new strategies to attract more customers not only in Germany. The discounter is also constantly expanding in the U.S. and the German concept seems to be more than well-received in America.
With the U.S. market expected to outperform the German market as early as next year, the brand will continue to grow in the U.S. Sales of 34.5 billion euros are expected as early as 2022, rising to a gross sales volume of $37.2 billion (€38.4 billion) by 2024. At the same time, sales in Germany are expected to increase less and then already be $5.4 billion (€5 billion) behind the U.S. business.
What makes Aldi so successful
Aldi’s success did not come overnight. Since the brothers Karl and Theodor took over the business in 1945, they have constantly developed new concepts to win new customers. Starting with the big step that customers serve themselves in the shop. Before that, sales assistants were responsible for the service.
But it is not only new concepts, more modern stores or contemporary innovations such as WLAN in the store that secure Aldi the discounter pole position. As the market leader, Aldi also sets the prices: If the discounter goes down on prices, the competition has to follow suit. As a result, a large selection of products can be offered at the lowest price. In the meantime Lidl, Penny, and Co. are also following suit, lowering prices and making low-price offers, which increases the pressure on Aldi – which in turn benefits the customer.
Product range and price reductions
When Aldi Süd and Aldi Nord added Persil detergent to their product range for the first time a few days ago, Lidl, Kaufland, and Co. responded with large price reductions. Many wondered why the discount store suddenly offered three brands of detergent. Specifically, customers found Ariel, Persil, and private label Tandil.
The breakup followed just a few days later when Persil promptly replaced Ariel on the detergent shelf. Presumably, the discounter had expected a bigger increase in sales, as the “Lebensmittel Zeitung” also speculated. The brand exchange is part of a new strategy that Aldi is now implementing.
Due to the constant price war, consumers can always get hold of bargains – and this increases the popularity and success of the discounter.
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First published in CHIP, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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