Look Out Wal-Mart, Here Comes Aldi

As many Americans struggle to keep their financial heads above water, Wal-Mart has repeatedly reported gains as customers hunt for the lowest prices on staple-items such as food.  If you are one of the many people choose where to shop, based solely on price, you’d have to notice the German grocer Aldi.  A story from Ocala.com (Ocala, Fla.) claims that Aldi has lower prices on many basic food-items than Wal-Mart.  From the article: 

“A gallon of Aldi milk goes for $2.79, but $3.48 at Wal-Mart; Crispy Rice cereal at Aldi is $1.59 for a 20-ounce box, but even the off-brand Crispy Rice at Wal-Mart is more, $2.16 for 18 ounces.” “The list goes on: Aldi hamburger buns go for 85 cents, $1.13 at Wal-Mart; 34.5 ounces of coffee is $4.49 at Aldi and $6.74 at Wal-Mart; bananas are 45 cents per pound at Aldi, 64 cents per pound at Wal-Mart.”

Aldi is a ‘bare-bones’ type of store, focusing on low-prices, not appearances.  They got their start in Germany in the 1970’s but have since spread to the U.S. and now operate around 800 retail locations, mainly in the eastern half of the U.S.  They sell off-brand generics, don’t typically use bags, and rarely accept payment other than cash.  But in times like these, more and more Americans care less about brand-identity and more about price. 

Last year, Wal-Mart sold their 85 stores in Germany to a German rival and top retailer, Metro AG, citing losses.  Now a German retailer is beating their prices on generic foods, on Wal-Mart’s own turf.  Look out Wal-Mart, here comes Aldi.