Where Haggen might stumble, ALDI might be a hit (Carpinteria: 2015, neighborhoods)

[LuvSouthOC]

Aldi Details U.S. Expansion Plan - WSJ

These stores are no frills in Germany. I think that approach works in general, but much of the Southland is super saturated with many low price offerings (ethnic stores) in this market. Do you think ALDI will make it in S. California?

[sourdough]

Haggen just opened a store today in Carpinteria. Never heard of Aldi?

[Chava61]

ALDI is already a great hit on the East Coast with its super low prices. I assume it will be a hit as well on the West Coast!

[DriveNotCommute]

Originally Posted by LuvSouthOC

Aldi Details U.S. Expansion Plan - WSJ

These stores are no frills in Germany. I think that approach works in general, but much of the Southland is super saturated with many low price offerings (ethnic stores) in this market. Do you think ALDI will make it in S. California?

My first thoughts mirrored your description. First, the particular neighborhoods where the higher-end Haggen markets wouldn't do well, ALDI might stand a chance. Second, California is full of grocers of all stripes that ALDI would find themselves facing a lot of competition. This would be true for produce as well as any specialized offerings they might carry.

Here's an incomplete list of the competition in California off of the top of my head:

[] Major national players - Kroger (Ralphs), Safeway (Vons-Safeway-Pavilions)-Albertsons, Trader Joes (ALDI-owned, different concept)
[] Major local players - Stater Bros (SoCal only), Sprouts (Henry's), Raley's (NorCal only), WinCo Foods (Western states)
[] Warehouse style chains - Food 4 Less (Kroger), Smart & Final (local)
[] High-End - Whole Foods, Bristol Farms, Gelsons
[] Asian grocery chains (national & local) - 99 Ranch, Seafood City, Zion Market, H-Mart, Nijiya, Mitsuwa
[] Mexican/Latino grocery chains (national & local) - Vallarta, Cardenas
[] Independent grocers - Locally owned, 1-5 locations or so, all ethnic stripes, varying levels of specialization, covers Latino regions, general Middle East regions, European regions plus Russia, more east Asian groceries, Pacific islands, Indian subcontinent, parts of Africa
[] Warehouse clubs - Costco, Sam's Club
[] Non-grocers trying to be grocers - Walmart (Walmart Supercenters, Walmart Express), Target (SuperTarget)

[] Major chains that failed ~last decade or so - Wild Oats, Fresh & Easy (Tesco)

All of these stores cover a very wide spectrum of quality as well as prices so just about every corner is covered.

ALDI's advantages:
* Size thus potential brand recognition. They should be easier to notice than the independent grocers. The competition is only competition if people know that they are there and actually spend money.
* Business model, thus operational savings as well as a way of differentiating themselves. This Business Insider article, while generally a short fluff piece, did have a couple of interesting points showing how ALDI is different from an average grocery chain:
Why Aldi is so cheap - Business Insider [businessinsider.com]

My opinion is that ALDI has a chance despite the competition but that the odds are not in their favor out here. Maybe they could come out on top if they have independent store prices without the chaos and mess.

[nightlysparrow]

Originally Posted by LuvSouthOC

Do you think ALDI will make it in S. California?

Only if they can substantially beat prices for organic produce, locally-sourced foods,and humanely produced products, because they are just another corporate food store.

Prices aren't everything, though. Whole Foods offers full soup, salad and hot entree bars, and indoor and outdoor seating to grab a meal. People actually meet for lunch and socialize there. Don't see Aldi doing that.

[bigdumbgod]

Could be a tough go in a region where Safeways are contracting, Albertsons are closing, and Fresh Choice is rethinking their decision to open stores here. Although...Mi Pueblo has been opening new stores at the same time.

[1AngryTaxPayer]

Originally Posted by Chava61

ALDI is already a great hit on the East Coast with its super low prices. I assume it will be a hit as well on the West Coast!

I dig their business model. I think they will do well.

[comingbacktocali]

people who shop at ALDI love it.

[Logic87]

Originally Posted by nightlysparrow

Only if they can substantially beat prices for organic produce, locally-sourced foods,and humanely produced products, because they are just another corporate food store.

Prices aren't everything, though. Whole Foods offers full soup, salad and hot entree bars, and indoor and outdoor seating to grab a meal. People actually meet for lunch and socialize there. Don't see Aldi doing that.

Aldi does offer a small amount of organic food and their prices on Organic food is better than trader Joes and Whole Foods.

Aldi is a great store and I hope they open one up before I move to California.

[eureka1]

Support your local grocers, not the mega corporations!!