Aldi Inc. - Optimizing Profits in Economic Recession
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Case Code: BSTR348 Case Length: 11 Pages Period: 2007-2009 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.300 Organization: Aldi Inc. Industry: Retail Countries: US, Germany Themes: Growth Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Store and Merchandise Management
Aldi entered the US in 1976. It opened its first store in southeastern Iowa. The company's business model was based on providing top quality products at low prices. The discount retailer emphasized keeping its cost low in all aspects so that it could offer the lowest prices to its consumers. The philosophy of the company was, "Incredible Value Every day"...
Tackling Recession
Retail experts opined that though the main competitor for Aldi in the US was Wal-Mart, the prices at Wal-Mart were not as low as those at Aldi. According to Aldi, consumers could save an average of 16 percent to 24 percent at its stores as compared to the big box or discount stores and 30 percent to 40 percent on private label or store brands as compared to branded products available at traditional supermarkets...
The Road Ahead
In 2010, Aldi planned to enter the Texas market and open 30 new stores there. Commenting on the untapped US retail market, Queck said, "In the US, Aldi has just 1,000 stores spread over 29 states, so that leaves a lot of room for further expansion." Some analysts were concerned about whether Aldi would be able to sustain its growth momentum in the US once the recession was over...
Exhibits
Exhibit I: Logos of Aldi
Exhibit II: An Aldi Store in the US
Exhibit III: Grocery Selections at Aldi in the US
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