http://www.nytimes.com/2011/03/30/business/30aldi.html?_r=1&adxnnl=1&ref=global&adxnnlx=1301500815-E5ThXRfpwS11g3tnExpvow
The above New York Time’s article is discussing Wal-Mart’s difficulty in setting up a store in NYC. It is also highlighting a newer discount retailer, Aldi, and their quick and smooth entrance into the market, specifically NYC.
The article mentions Walmart as the bad guy. The author seems to suggest that Walmart is having trouble entering the urban market because they are seen as a big, bad, bully that no one wants to mess with. On the other hand, german based Aldi, is working with the city and the private owners of the leased buildings. The close relationship that Aldi has created has made there entrance into the market easier.
Lately Aldi has been focusing on its city market. When Aldi first started it was about 25 stores in 1976. Recently they have expanded to over 250 and they have primarily focused on urban areas. I think this is smart because of the lack of “superstores” in urban areas. Due to lack of space, urban areas provide problems for Walmart. However, Aldi provides a more specific inventory to their customers allowing them to provide many items in a smaller space. Not only does this allow them to move in to urban areas, but it also keeps costs down.
Aldi focuses on providing cheap, non-branded, specific groceries to its customers. It has a fraction of Walmart’s inventory yet they claim to meet the needs of the everyday shopper. My question is, Will Aldi remain successful? Is the urban/city market the one to go for? What does this mean for Walmart?
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