In the UK, the Times of London reports on how discounter Aldi is challenging the big four food retailers – Tesco, Walmart’s Asda Group, Sainsbury and William Morrison Supermarkets – with an approach that minimizes the importance of choice.
Paul Foley, Aldi’s managing director in the UK, says that by offering one SKU instead of dozens in any given category, Aldi is able to save people time and money…and make more money because those products are private brands.
“It’s price that grabs you, but it’s quality that makes you come back,” Foley tells the paper, arguing that the recession actually has been a good thing for Aldi since it has broken down some people’s resistance to shopping there.
And, the Times writes: “Tesco, at least, appears to be genuinely concerned. Last year it introduced a new own-label range to lay claim to being ‘Britain’s biggest discounter’. Asda is culling the number of product lines it stocks to cut costs, while Sainsbury’s has launched a ‘switch and save’ campaign to encourage shoppers to buy own-label goods.”
They’d better take Aldi seriously. Foley projects that the company will grow from its current 467 stores in Britain and the Republic of Ireland to as many as 1,500 – and claim at least a 10 percent market share.
Paul Foley, Aldi’s managing director in the UK, says that by offering one SKU instead of dozens in any given category, Aldi is able to save people time and money…and make more money because those products are private brands.
“It’s price that grabs you, but it’s quality that makes you come back,” Foley tells the paper, arguing that the recession actually has been a good thing for Aldi since it has broken down some people’s resistance to shopping there.
And, the Times writes: “Tesco, at least, appears to be genuinely concerned. Last year it introduced a new own-label range to lay claim to being ‘Britain’s biggest discounter’. Asda is culling the number of product lines it stocks to cut costs, while Sainsbury’s has launched a ‘switch and save’ campaign to encourage shoppers to buy own-label goods.”
They’d better take Aldi seriously. Foley projects that the company will grow from its current 467 stores in Britain and the Republic of Ireland to as many as 1,500 – and claim at least a 10 percent market share.
- KC's View:
