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Old 08-01-2017, 11:07 AM
 
Location: South Carolina
21,035 posts, read 27,412,934 times
Reputation: 6010

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Successful competitors are not going to be adversely impacted. Failing competitors will continue to close stores.
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Old 08-01-2017, 12:19 PM
 
28 posts, read 24,789 times
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Looks like it's only distribution. That said, I love Aldi's...although I didn't know the cash only/no bags policy the first time I went to one. Their pricing is amazing. I hope this means that one is on the horizon in AZ.
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Old 08-01-2017, 02:40 PM
 
7,343 posts, read 4,399,568 times
Reputation: 7664
Aldis, gross. I'd rather pay a few cents more for the real stuff.

As mentioned earlier in the thread if they set up shop here I could see them getting a lot of the Hispanic market, stealing customers away from food city.
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Old 08-01-2017, 04:18 PM
 
1,364 posts, read 1,121,359 times
Reputation: 1053
Quote:
Originally Posted by NYCtoAZ View Post
Looks like it's only distribution. That said, I love Aldi's...although I didn't know the cash only/no bags policy the first time I went to one. Their pricing is amazing. I hope this means that one is on the horizon in AZ.

The only reason why they will build this distribution center in Arizona is to deliver their future stores in Arizona.
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Old 08-01-2017, 04:58 PM
 
1,364 posts, read 1,121,359 times
Reputation: 1053
Quote:
Originally Posted by Carolina Knight View Post
Successful competitors are not going to be adversely impacted. Failing competitors will continue to close stores.
Of course they will be impacted. Of course chains like Kroger or Publix lose sales to Aldi, but they are able to compensate those losses by winning sales from struggling chains.

Figures from Infoscout:

Market share 05/25/2015 - 10/12/2015 x Growth:

Aldi: 1.37% - 1.61% x +17.5%
Publix: 2.81% - 2.99% x +6.4%
Trader Joe's: 0.93% - 0.98% x +5.4%
Winco Foods: 0.52% - 0.54% x +3,8%
Ahold: 2.15% - 2.20% x +2.3%
Walmart: 25.16% - 25.61% x +1.8%
Delhaize America: 1.04% - 1.05% x +1.0%
Hy-Vee: 0.49% - 0.49% x +0.0%
Kroger: 7.04% - 6.99% x -0.7%
Albertsons: 1.71% - 1.67% x -2.3%
Safeway: 1.93% - 1.75% x -9.3%
Whole Foods: 0.68% - 0.61% x -10.3%
Southeastern Grocers: 0.89% - 0.79% x -11.2%

17.5% growth for Aldi in less than 5 month, that's enormous. In this period the number of Aldi stores increased by about 4%.

A chain like Kroger will be affected. Of course they don't get bankrupt. But it's in my opinion not a good idea to buy stocks of Kroger. It will become very difficult for Kroger and other listed chains to make enough profits to invest sufficiently in their stores AND for paying dividends and buying back shares.
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Old 08-01-2017, 05:43 PM
 
202 posts, read 221,831 times
Reputation: 386
Quote:
Originally Posted by ShampooBanana View Post
Why would they be building a distribution center in the west valley of Phoenix if it was only to serve California? Makes no sense. They clearly have plans to penetrate Phoenix and probably Vegas/Tucson eventually. FYI I love Aldi. High quality products for a low price. By the way, did you all know they are owned by the same group that owns Trader Joe's? The Albrecht Brothers, a couple German brothers who were among the wealthiest people in the world at one time (now passed so it is now part of a family trust). Trader Joe's is already all over Cali and AZ so makes sense Aldi would come here.
They built it here because it's way cheaper to build a distribution center here and lower wages. Why the heck would anyone build a distribution center in California, if you can build one with significantly lower operating costs in Arizona, even if you never plan on expanding there. I think they eventually will expand to Arizona. I'm just saying that building a warehouse here instead of California doesn't necessitate an expansion to this state.
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Old 08-01-2017, 06:16 PM
 
Location: TUS/PDX
7,838 posts, read 4,593,507 times
Reputation: 8868
Quote:
Originally Posted by Thomasaz View Post
They built it here because it's way cheaper to build a distribution center here and lower wages. Why the heck would anyone build a distribution center in California, if you can build one with significantly lower operating costs in Arizona, even if you never plan on expanding there. I think they eventually will expand to Arizona. I'm just saying that building a warehouse here instead of California doesn't necessitate an expansion to this state.
You don't build a DC in the 6th largest market in the country unless you plan on servicing that market. Period.
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Old 08-01-2017, 08:08 PM
 
Location: Hard aground in the Sonoran Desert
4,866 posts, read 11,264,655 times
Reputation: 7128
Quote:
Originally Posted by take57 View Post
You don't build a DC in the 6th largest market in the country unless you plan on servicing that market. Period.
You do when you are 5 hours from the largest market in the country and the costs are a fraction of what you'd spend to setup shop in that market.
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Old 08-01-2017, 08:09 PM
 
Location: Tempe, AZ
772 posts, read 843,330 times
Reputation: 1682
From the sounds of it from some who have these in their area this isn't a big win and not some place I would shop. Questionable produce and meat, and cheap low quality generic items. So this place will be on par with food city. It will fail like fresh and easy and I'll stick to sprouts and frys.
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Old 08-01-2017, 08:15 PM
 
Location: Hard aground in the Sonoran Desert
4,866 posts, read 11,264,655 times
Reputation: 7128
Quote:
Originally Posted by TempeAZnative View Post
From the sounds of it from some who have these in their area this isn't a big win and not some place I would shop. Questionable produce and meat, and cheap low quality generic items. So this place will be on par with food city. It will fail like fresh and easy and I'll stick to sprouts and frys.
We can find that now at Walmart, don't know why we need another place like this but I'm all for competition.
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