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Aldi goes against 'online' grain with focus on stores, low prices

Because of its small, efficient footprint, Aldi wrings much more return out of its capital investments. "They win by keeping it simple and keeping their stores small and easy to shop," said Chris Boring, a local retail expert. "Aldi has a different concept." Though some retailers rely on fancy websites to draw customers, Aldi (and others) have learned that new stores draw, too. Aldi opened stores in Canal Winchester and Pickerington last year, and replaced a store in Heath this year. New stores have or will open in Plain City, Powell and Columbus by the end of this year. "For a long time, the food and beverage industry focused solely on new store growth, leaving existing stores untouched," said Steve Jones, director of development services at JLL, a real estate and investment management firm based in Chicago. He added that today's customers expect more updated and trendy stores. Aldi's local expansion is part of a national, $3.4 billion push to have 2,500 stores by 2022 — about as many as Kroger. "This is a significant investment in our stores," said Sarah Brown, vice president of Aldi's Springfield division, which includes central Ohio, "but it's really an investment in our shoppers." Those shoppers are the same ones every grocer is gunning for with brilliant produce sections, meal kits, all the digital tech tools and more. Though the new Aldis are appealing with brighter interiors, more produce and fresh foods, and much more organic and specialty items, the ace in Aldi's hand is price. Low, low, prices — like 30 percent lower than traditional groceries, according to JLL.

For the original version including any supplementary images or video, visit http://www.dispatch.com/news/20180624/aldi-goes-against-online-grain-with-focus-on-stores-low-prices

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