Aldi is set to begin opening the first of its 13 Orlando-area
no-frills stores this month, the Orlando Sentinel reports.
The format -- which has shoppers bagging their own purchases and
carts requiring a 25-cent deposit that you get back when the cart
is returned -- allows the company to offer prices lower than rival
discounters and up to 50 percent less than traditional
supermarkets.
"It is all about saving money for our customers," said David Behm,
vice president of Aldi Inc., during a tour Monday of a store on
West Colonial Drive in Orlando.
Aldi aims to win over price-sensitive customers pinched by high gas
costs and worried about an unsteady economy. The grocer, founded in
Germany with 900 U.S. locations, will compete with the likes of
limited-assortment discount grocer Save-A-Lot and supercenters such
as Wal-Mart.
Other cost-saving methods at Aldi include selling a limited
selection of primarily private-label brands while operating stores
about the fourth of the size of a traditional grocery store with
small staffs of 10 to 12 employees.
Behm said fewer workers are needed because stores don't have a
full-service deli or bakery (sliced meats and bread are packaged
off-site). They also don't have to retrieve carts since customers
bring them back. Checkout lines move quickly, he said, because
items are covered with bar codes and can be quickly scanned by
cashiers.
Aldi's move into Central Florida comes at a time when the grocery
business is undergoing big changes.
Publix Super Markets, the region's largest grocery chain, recently
bought seven Albertsons stores in Central Florida as part of a $500
million purchase of 49 Albertsons across the state. Lakeland-based
Publix plans to open a store in downtown Orlando on Saturday, the
first big grocery chain to operate downtown in more than 25
years.
Albertsons, which closed the stores sold to Publix on Saturday, now
has 16 locations here. Winn-Dixie Stores has been upgrading its
stores, and expanding its private-label lines and fresh produce
offerings.
Mark Hamstra, retail editor for Supermarket News, said
traditional grocers have expanded and marketed private-label
brands, which tend to cost less, as a way to keep their
cost-conscious customers.
"There has [been] a lot of price competition out there, and with
Aldi, there will be more," Hamstra said.
"It has been tough for supermarkets to communicate to customers
that their prices are [attractive] because the supermarkets
themselves are facing so many price pressures," Hamstra said. "They
have no choice but to pass it on to the consumer eventually . . .
because their profit margins are so slim." Targeting higher-end
shoppers and people willing to pay more for gourmet and organic
offerings is another competitive strategy, Hamstra said.
Along those lines, Publix plans to convert an Albertsons at 7524
Dr. Phillips Blvd. in Orlando into a GreenWise Market store, which
will sell the company's organic, natural and eco-friendly products.
That location is a short distance from a 52,000-square-foot gourmet
Whole Foods store that opened in June on Sand Lake Road.
Publix said it will also convert a store at 741 S. Orlando Ave. in
Winter Park into a GreenWise Market. It will be within a short
drive from Whole Foods' original Orlando-area location -- on Aloma
Avenue in Winter Park.
As organic and natural foods become more popular, Publix has
expanded its selection of GreenWise products in certain existing
stores. The company operates two GreenWise stores in South Florida
with a third planned to open in Tampa.
"Organic makes up a very small percentage of the overall grocery
market, but it is growing quickly," Hamstra said.






