Just past noon, Anna Chernova, a 68-year-old retiree, pushed her black metal shopping cart into an Aldi store here. After arriving from Russia 16 years ago, Chernova regularly shopped at conventional supermarkets like Dominick's and Jewel, but no more. "They're too expensive," Chernova says, clutching her shopping list with one hand. Now she visits Aldi once a week, drawn by the deep discounter's $2.69 one-gallon jugs of milk, and 33-cent boxes of salt. "I've got to save my pennies," she says, heading into the store. Chernova certainly isn't alone.
Spooked by the gravest economic crisis in decades, Americans are curtailing their spending. They're making fewer trips to supermarkets, and migrating from grocers like Albertson's and Whole Foods to deep discounters like Aldi and Save-a-Lot. And it's not just retirees like Chernova. These Spartan bastions of private-label goods are looking a lot better to a broader range of shoppers. "Prior to the economic slowdown, we were prospering. But now, we're seeing customers looking to save money, and our foot traffic has increased," says Jason Hart, president of Aldi US, based in Batavia, Ill. "There seems to be more demand for our stores, and people don't want to sacrifice quality." Aldi arrived in the U.S. in 1976, hoping to replicate a business model that proved successful in Europe. With U.S. food inflation then in the double digits, the company's timing couldn't have been better. Aldi was one of the first so-called "box" or "no-frills" stores, grocers that featured rock-bottom pricing by offering a limited inventory and squeezing out all unnecessary costs, from coupons to butcher shops to fancy displays.. . . more
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