Introduction
Aldi is a German-based discount supermarket which, by 2012, had a global presence in over 17 countries and approximately 10,000 stores
(Steen & Lane, 2015). In the United States, Aldi has close to 1,300 stores spread out across 32 states, including Trader Joe’s units, and it employs over 18,000 people, which makes it the 25th largest grocer in the country by store numbers and employee roster (MENA Report,
2013). Aldi sells a wide range of private label and branded household items, including food and non-food products, such as vegetables, dairy products, fresh fruits, meat, toilet roll, and sanitary items among others (Canadean, 2015; Steen & Lane, 2015). Private labeling is the deliberate creation of retail house brands, which …show more content…
This paper conducts a Strengths,
Weaknesses, Opportunities, and Threats (SWOT) analysis of Aldi in the
United States market and makes short-term and long-term recommendations for company’s planned expansion.
Strengths
The greatest strength of Aldi is its rich heritage. Despite having its origins and headquarters in Germany, Aldi is currently the “leading low-price grocer” in the United States (MENA Report, 2013). Its U.S. stores contribute over $5 billion to the overall annual company sales
(Podsada, 2007). The company’s name is, therefore, already a brand that stimulates consumer interest, particularly due to the company’s unique business model. Unlike traditional supermarkets, Aldi’s business model focuses on stocking a limited number of mostly private-label brands. As Podsada (2007) argues, most big supermarkets usually stock over 25,000 different brands but Aldi stocks a variety of less than 1,000 brands, 90% of which are private labeled. Aldi has a modern test kitchen that ensures that the company’s private label products meet or surpass the quality of national brands but at a
Aldi is a German-based discount supermarket which, by 2012, had a global presence in over 17 countries and approximately 10,000 stores
(Steen & Lane, 2015). In the United States, Aldi has close to 1,300 stores spread out across 32 states, including Trader Joe’s units, and it employs over 18,000 people, which makes it the 25th largest grocer in the country by store numbers and employee roster (MENA Report,
2013). Aldi sells a wide range of private label and branded household items, including food and non-food products, such as vegetables, dairy products, fresh fruits, meat, toilet roll, and sanitary items among others (Canadean, 2015; Steen & Lane, 2015). Private labeling is the deliberate creation of retail house brands, which …show more content…
This paper conducts a Strengths,
Weaknesses, Opportunities, and Threats (SWOT) analysis of Aldi in the
United States market and makes short-term and long-term recommendations for company’s planned expansion.
Strengths
The greatest strength of Aldi is its rich heritage. Despite having its origins and headquarters in Germany, Aldi is currently the “leading low-price grocer” in the United States (MENA Report, 2013). Its U.S. stores contribute over $5 billion to the overall annual company sales
(Podsada, 2007). The company’s name is, therefore, already a brand that stimulates consumer interest, particularly due to the company’s unique business model. Unlike traditional supermarkets, Aldi’s business model focuses on stocking a limited number of mostly private-label brands. As Podsada (2007) argues, most big supermarkets usually stock over 25,000 different brands but Aldi stocks a variety of less than 1,000 brands, 90% of which are private labeled. Aldi has a modern test kitchen that ensures that the company’s private label products meet or surpass the quality of national brands but at a