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Tuesday, March 29, 2011

Aldi and Wal-Mart


An interesting comparison.


Where Wal-Mart Failed, Aldi Succeeds - NYTimes.com: "After decades spent fleeing cities for the strip malls and boulevards of the suburbs, grocers and discount retailers are doing an about-face. Target plans to open its first smaller, city-size store in Seattle next year, and Wal-Mart announced recently that it would build “hundreds” of smaller, mostly urban stores in the coming years.

Meanwhile, Aldi has quietly been setting up its shops in cities around the country.

“They’re not only doing the small format more rapidly, but they’re getting into the urban areas more rapidly than either Wal-Mart Express or the city Targets,” said Craig Johnson, president of the consulting firm Customer Growth Partners. “Even though the company’s headquartered in Germany, they’ve opened up a New York store quicker than Wal-Mart has.”

Even though Aldi, like Wal-Mart, is nonunion, it has faced little resistance, compared with the heated opposition often headed by unions and politicians that Wal-Marts have encountered in larger markets."

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