News
Bargain-Priced German Supermarkets Plot US Takeover
In bad news for Whole Foods and Walmart, German grocery stores Aldi and Lidl are planning a US invasion. Lidl just opened headquarters in Virginia, while Aldi recently revealed plans to add 600 new stores over the next three years, bringing the total to 2,000. The German giants have already conquered the UK supermarket industry, causing UK-grocer's stock prices to plummet. Andy Clarke, CEO of Asda—Britain's second-largest grocery chain—called this "the worst storm in retail history." With a large selection of private label items, Aldi's prices are about 22% lower than Walmart's promised deals. It also carries only 5% of the inventory found in traditional grocery stores, and inventory is a huge cost-driver for retailers. [BI]
