Aldi will open its 700th store later this month and is planning to open a further 300 over the next five years. Along with Lidl, it has caused huge disruption in the supermarket aisles, stealing market share form the traditional “big four” grocers; Tesco, Sainsbury’s, Asda and Morrisons.
And the more it tries to offer its customers, in terms of range and in store experience, the greater the danger that it strays from its low cost, efficient business model which has proved so effective.
Aldi employs a few smart strategies to allow them to sell groceries for so cheap.
- Private Labels
- Natural and energy efficient lighting to cut down on utility costs
Why do you think Aldi has decided to focus on low-price strategies significantly in such competitive market? To gain competitive advantage or differentiate from the traditional “big four”?