Friday, September 18, 2015
Look Out, U.S Grocers, U.K.’s Free-for-All Heads Across the Pond
Wall Street Journal: Look Out, U.S. Grocers, U.K.'s Free-for-All Heads Across the Pond
By Saabira Chaudhuri
September 10, 2015
Article review by Ayan Martin
The U.K. has seen a recent shift in grocery sales, where big name players like Tesco and Sainsbury have taken a back seat to discount chains like Aldi and Lindl. The article states that Tesco, Sainsbury, and Morrison shares have already dropped more than13% on average since Aldi and Lindl stores opened. Stores like Tesco are designed similar to Kroger and Whole Foods, with a well-kept, organized, and plentiful supply concept. These stores are attractive but can demand a higher price point. Stores like Aldi do not aim to please the eye, but the wallet. They offer select items that are majority generic, sell some items directly from the pallet, and have smaller stores, which reduces overhead costs and ultimately sales prices. This may not sound like much competition to the big name stores, as many people like to shop where they have more options, but it has become the opposite. Based on worldwide market changes, price is the one thing on everyone's mind. Consumers are shifting their mindset to be more cost conscious, and stores like Aldi is allowing them to do that. And surprise, they are starting to open stores in the US!! The US presence of Aldi may be a game changer for stores like Whole Foods, and even Kroger and HEB. It also may be a direct competitor with low-priced Wal-Mart.
I personally visited an Aldi store in Houston, and wasn't impressed. I like the idea of having options and different price points; I am also brand loyal to some items. I feel it would be a waste of my time and gas to visit Aldi for certain items and HEB to get the brands I can't live without. Good luck to Aldi and Lindl in your quest for grocery store domination!