Aldi has eyes on the prize with $3.4bn push in USA
A multi-billion dollar investment by Aldi, alongside a new venture by Lidl, is set to cause major disruption to the US grocery market in the take-no-prisoners race to find the lowest prices possible.
13 June 2017 | 0
German grocery giant Aldi has said it plans to invest a massive $3.4 billion in its US operation in the coming years. Reuters reports that the investment comes at a time of intense competition in the US supermarket industry, and threatens to spark a price war for rivals.
Aldi, which already operates 1,600 stores in the USA, said earlier this year it plans to open a further 400 stores by the end of 2018. The company has simultaneous plans to remodel hundreds of its stores across the country.
Meanwhile, Lidl, Aldi’s fierce global rival, has just opened its first of 100 planned US stores. That company threw down its gauntlet by stating plans to price products up to 50% lower than its rivals, a claim Aldi also made.
It seems a new price war is about to kick off in the USA, and US consumers won’t know what hit them. This furious expansion and race-to-the-bottom pricing is likely to cause massive disruption to the US grocery market, Reuters says.