Thursday, May 11, 2017

Aldi raises stakes in U.S. price war with Wal-Mart

Image result for aldi pricesAlready with 1,600 U.S. stores, Aldi’s internal studies show its prices are 21 percent lower than its lowest-priced rivals, including Wal-Mart Stores Inc, according to Chief Executive Jason Hart. He plans to maintain that gap going forward.

His strategy, previously unreported, centers on adding more private-label goods, which are a retailer's in-house brands, to win over price-sensitive customers, and a massive expansion to further disrupt a U.S. grocery sector that has seen 18 companies go bankrupt since 2014.

Hart's plan calls for spending $1.6 billion to expand and remodel 1,300 U.S. stores, and open 400 new stores mainly in Florida, Texas and on both coasts by end of 2018.. . . more

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