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If you don’t get aggressive in reacting to tough economic times, the odds are pretty good that your competition will.
The Milwaukee Journal-Sentinel reports that Aldi is a prime example of a company that is taking advantage of the declining US economy to build up its own operations: “The low-profile, no-frills German grocery chain sees opportunity in the sagging U.S. economy, and Aldi is stepping up both its U.S. expansion plans and its profile. Aldi recently ran a batch of TV ads after staying off the airwaves for 15 years. The company also has loosened up and started talking with the media, reversing a longstanding policy of not taking calls from reporters.”

The paper notes that while the limited assortment chain doesn't release sales figures, the National Retail Federation's Stores magazine ranks the chain 91st in size among U.S. retailers, with sales estimated at $3.6 billion.

And the formula is both basic and consistent – Aldi carries fast-moving basics and commodities, doesn’t take checks or credit cards, and if you want a bag for your groceries you’d better bring your own. The message from start to finish is about savings…and it is one that Aldi believes will serve it well during a well-timed US expansion.

KC's View: