Instead, the company often purchases second-rate locations as part of its cost-cutting strategy. Harsh strip lighting emphasizes the "pile it high, sell it cheap" atmosphere of which Aldi seems proud. Mark Kass of the Business Journal-Milwaukee quoted from a rare company brochure in July that summarized Aldi's philosophy: "When you buy a can of peas at Aldi, you're paying almost entirely for the can of peas. Aldi doesn't need to tack on one more penny to pay for any army of stackers or piped-in music or fancy display or check cashing or gimmicks and games.
So your food dollar pays for what it's supposed to pay for To some consumers, the low-budget ambiance is a turn-off. Fiona Gilmore, managing director of Great Britain's largest design consultancy, Michael Peters and Partners, told Suzanne Bidlake of Marketing that Aldi's stores were so depressing that "people charge around the shelves to get out as soon as possible.
Industry observer L. Craig Carver speculated in a interview with Richard Turcsik of Supermarket News that "certain customers are overwhelmed by the large formats and wide selections offered by modern superstores.
They are intimidated in large stores and prefer the lack of assortment. The Aldi Group's management executives have long been regarded as reticent and secretive, and the chain's policy of evading the press is widely known. The international chain's reserved reputation is attributed to its founders and owners, Theo and Karl Albrecht. A June Supermarket News story reported that the Albrecht brothers hadn't been seen in public "for many years. Its just that we're one of the largest retailers in Europe and we don't want to discuss our business with the media.
If they're taken seriously by the competition, limited-assortment stores won't grow or be a threat in any given market. Aldi's stealthy and successful international expansion to its present stature was undertaken gradually.
Originally founded in , the company refined its strategy and built up significant reserves in the post-World War II German grocery market. Aldi quietly expanded into other areas of Europe. The private company also garnered approximately five percent of the grocery business in the Netherlands in the early s. In addition, Aldi set up about outlets in Austria and another in Denmark. But while Aldi established its presence in a number of neighboring countries in the latter half of the twentieth century, its home country remained its primary market.
By the late s Aldi operated about fifty separate companies, which in turn ran over 2, stores in West Germany alone. The s and s were marked by Aldi's initial attempts to establish itself in three key international markets: the United States, the United Kingdom, and France. Aldi established its U. All of those companies eventually abandoned the concept.
Aldi's first American outlets were launched in rural areas of the Midwest. A warehouse was established in Batavia, Illinois; the company's U.
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