Here Is The Truth
Indeed, when it comes to discount shopping, Aldi has a good reputation for satisfying its customers. No wonder it won the heart of many Australian shoppers, beating out other grocery chains to be named the “best supermarket in Australia” and the “second most trusted brand in the country” in 2020. It is not surprising that many Zealanders hope Aldi will swoop down and save the day. But, quoting an unnamed spokesperson for the company, Newshub reported that “Aldi will not be expanding its business empire into New Zealand”. But why? Before we get into that, here is why Aldi is such a rave in the global grocery industry.
What Makes Aldi So Special?
With all the fuss about Aldi, one might begin to wonder what makes them so special. Founded by two German brothers in 1946, Aldi has grown to become a global player in the grocery business. In 1960 the company split in two to form Aldi Nord and Aldi Sud. However, both companies are commonly referred to as Aldi and operate a total of 10,000 stores in 20 countries with a net worth of about $121 billion as of 2021. Outside its home country of Germany, Aldi’s performance has won it several titles including the UK’s Supermarket of the year (twice), and Grocer of the Year Award. Here is why Aldi is preferred by consumers;
Big Discounts
Aldi is known for making an entrance by offering big discounts in prices and shoppers love it. In Australia, the company helped deflate the prices of groceries by offering up to 13% discount in prices and is said to have offered much more (about 30% discount) when it entered the UK market.
Variety
Aldi makes shopping fun by giving its customers a variety of select items. Each of these special items is altered weekly and there is no way of knowing what might be on sale next week. Call it an element of surprise and at great prices too.
Ease of Shopping
One of the unique ways that Aldi stands out from other supermarkets is in its size. Yes, this behemoth grocery chain is known to have individual stores that are quite small in size compared to your regular supermarkets. One advantage of this is that it makes shopping easy since you can quickly scan through the room and locate what you want. Better still, this layout is the same in all its stores so no matter which one you visit, they all look familiar.
Eco-friendly
Climate change is a big deal and many organizations are taking steps to ensure they leave a positive impact on the environment, Aldi is no different. Breaking down its commitment into three tiers, Aldi states that it is focused on; tackling climate change, increasing energy efficiency, and reducing, reusing, and recycling waste. Check this link to learn more about Aldi’s environmental commitment and how they are going about it.
Aldi checks the right boxes of an organization with a positive reputation. They equally have the resources to break into a new market with relative ease, after all, they have done it several times in the past. This brings us back to our question, why is Aldi not in New Zealand?
Why Not New Zealand?
Although Aldi has not released any official statement to back up its stance, there have been some speculations. These speculations are fueled by the fact that Aldi has been registered in New Zealand since 2000. So why the hesitation? Well, for one, New Zealand offers a tiny market (compared to other countries) due to its small population size.
Bear in mind that entering into a new market requires lots of capital expenditures. It starts to make sense why even a major global player like Aldi will be reluctant to move into a country that is already saturated (so to speak) when its resources could be put into better use in countries where it already has a major foothold. This is where local players like Foodstuffs and Countdown have an edge over their foreign counterparts. Additionally, the popularity of online retail stores means that physical stores like Aldi have a run for their money. Putting these facts together, it is easy to see why Aldi is a bit hesitant in breaking into New Zealand’s grocery market.
What Is Being Done About This?
The government of New Zealand is aware of the situation and a report revealed that indeed, New Zealanders pay way more than they should for groceries. But knowing this is just one step in the right direction. The major challenge however is coming up with a plan that is good enough to disrupt the industry and create healthy competition. Chair of New Zealand’s Commerce Commission Anna Rawlings suggested that major players (Countdown and Foodstuffs) be forced to sell some of their shops to a third-party retailer, or a joint venture between the government and a third-party retailer. But while the government searches for a solution, individuals have taken to platforms to petition Aldi to make a move into the country. This shows their strong belief that Aldi is the right choice for New Zealand and what do they say about customers? “They are always right”.
Conclusion
What is the full meaning of ALDI?
Answer: ALDI stands for Albrecht Diskont or Albrecht Discount
Is Aldi the same as Trader Joe’s?
Answer: Trader Joe’s is a subsidiary of Aldi in the United State
