The Wall Street Journal reports that Aldi wants to go beyond its traditional appeal to "cash-strapped customers" and is "moving into wealthier areas as Americans of all stripes get more budget-conscious and their traditional low-to-middle-income niche gets crowded with competitors. Aldi is going even further in appealing to upscale tastes by stocking some fancier goods, such as organic foods."
The same pivot, the story says, is being contemplated by Lidl, another German discounter that has had considerable European success and has plans to enter the US next year.
Just this weekend, the Houston Business Journal reported that Lidl, which had been focusing on east coast sites for its initial US foray, now also is looking at Texas sites. Texas is a hotbed of competition, and so it seems logical for Lidl to look for ways to expand its appeal as a way of being more competitive.
The same pivot, the story says, is being contemplated by Lidl, another German discounter that has had considerable European success and has plans to enter the US next year.
Just this weekend, the Houston Business Journal reported that Lidl, which had been focusing on east coast sites for its initial US foray, now also is looking at Texas sites. Texas is a hotbed of competition, and so it seems logical for Lidl to look for ways to expand its appeal as a way of being more competitive.
- KC's View:
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The Journal story suggests that one of the reasons that both Aldi and Lidl are planning this positioning shift is that they have concerns that their traditional no frills appeal - limited assortment, private labels, minimal staff - may have a ceiling in the US that could limit their growth. And they seem to believe that an expanded offering will raise that ceiling, which would only be helpful in an increasingly competitive marketplace.
