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U.S. NEWS Wednesday 14 June 2017

Low prices, few choices: Discounters remake grocery shopping

By CANDICE CHOI er German discount gro- have a mix of private-label vate-label products,” she wide the selection is can
AP Food Industry Writer cer, Lidl, prepares to open brand names, which will said. Another difference at vary by item. Since people
NEW YORK (AP) — At a Tar- its first 10 U.S. stores on Thurs- account for 90 percent of Aldi and Lidl: Presentation. tend to be more particular
get in upper Manhattan, day with plans to have 100 the products in its stores. The stores tend to have about yogurt, the compa-
shoppers can pick from 19 within a year. Already, the Whole Foods offers its 365 fewer aisles than usual U.S. ny says 365 may offer just as
types of ketchup, includ- discounters have success- label across a variety of supermarkets, and prod- many choices as the aver-
ing well-known names like age Whole Foods store.
Heinz and Hunt’s. At the Jeff Turnas, head of 365
Aldi next door, the three by Whole Foods, said the
options range from 99 cents stores can cater to people
to $1.79. All are the chain’s who want to do their shop-
own brands, which doesn’t ping more quickly.
seem to bother shoppers “We have tried to make
attracted by the low prices. the decision-making faster,
“If you look at the ingredi- easier,” Turnas says.
ents, it’s the same thing. A Aldi U.S. CEO Jason Hart
lot of people don’t realize also says his chain is deliber-
that,” said Anabel Rosado, ate about where it wants to
a bank supervisor who was offer more variety. He said
browsing the snack aisle. people can find whatever
Aldi and its European rival products they might get
Lidl, which opens its first U.S. at rival grocers, but there
store this week, are hoping might just be fewer options
to change the way people within each category. He
shop with their smaller, no- said people prefer that be-
frills stores filled mostly with cause too many choices
house brands that tend “just add confusion.”
to cost less. Whole Foods, “Our format of retailing and
which has fought the our format of shopping is
“Whole Paycheck” reputa- becoming more accepted
tion, is also moving into the in the mainstream,” Hart
discount sector with an off- said.
shoot chain named after its For now, Kantar Retail esti-
365 brand. mates that the discounter
The push could further Boxes of the Aldi food market chain’s Millville Raisin Bran are on display in a purple box similar to category, which includes
the versions made by Kellogg and Post, at an Aldi store in New York. Stocking shelves with store
pressure grocery giants brands is a big part of how discounters keep costs down. Aldi, Trader Joe’s and dol-
like Walmart and Kroger, (AP Photo/Candice Choi) lar stores, has 6 percent of
which are also contend- U.S. grocery sales. By 2021,
ing with the growth poten- it expects that figure to inch
tial of online grocers and fully taken market share in categories, more akin to ucts are often stocked on up to 8 percent.
have already been reining the U.K. grocery industry, the approach at Trader the shelves in the boxes Walmart says the scope
in operational costs so they according to Euromonitor Joe’s, which has also been they arrived in. It’s part of its offerings — including
can keep their prices com- International. There are four steadily expanding its store of how they keep prices its pharmacy and options
petitive. Target is also trying 365 by Whole Foods loca- count in United States. down. At Aldi, shoppers are like in-store pickup for on-
to become better known tions and 20 more in devel- The growing popularity of also expected to bring their line orders — sets it apart
for low prices as it works to opment. store brands across the own bags unless they want from the competition. The
boost its struggling grocery grocery industry is expect- to pay 10 cents for a plas- retailer notes it has been
business. FAMILIAR PACKAGE, UNFA- ed to help discounters. The tic bag or 7 cents for a pa- working on keeping prices
“We are certainly aware, MILIAR NAME trend is partly because su- per one. Lidl also said it will down and that its custom-
paying a lot of attention, Walk into an Aldi store, and permarkets have stepped charge for bags, but hasn’t er traffic is up. Kurt Jetta,
have a lot of respect, but the products often come in up their own private-label said how much. CEO of consulting firm Tabs
we like our strategy,” Steve packaging reminiscent of offerings in recent years to Analytics, also said big-box
Schmitt, Walmart’s vice more popular brands. The control costs. Late last year, CHOICES, CHOICES retailers have the advan-
president of investor rela- chain’s Millville Raisin Bran Kroger said its store brands Aldi, Lidl and 365 by Whole tage of being able to draw
tions, said in May about the is in a purple box similar to reached 29 percent of Foods challenge the idea a wider swath of shoppers
growth of the European the versions made by Kel- items sold. Diana Sheehan, that shoppers want the ar- by offering greater variety.
chains. logg and Post. Its Benton’s director of retail insights ray of choices found at tra- Still, he said Aldi and Lidl
Aldi, which has 1,650 U.S. lo- cookies are in blue pack- at consulting firm Kantar ditional supermarkets. might have more appeal
cations, has been remodel- ages that resemble those Retail, said more people While a standard Whole than dollar stores with mid-
ing stores to have a brighter of Chips Ahoy. turned to store brands dur- Foods may have around dle-income customers, in
feel and plans to expand to Stocking shelves with store ing the recession. 30,000 products, a 365 store line with places like Trader
2,500 stores in the next five brands is a big part of how “They have gotten com- has about 8,000, which Joe’s. “They don’t have the
years. The expansion plans discounters keep costs fortable and started to helps keep down over- stigma attached to them,”
were announced as anoth- down. Lidl also says it will embrace higher-quality pri- all operational costs. How Jetta said.q