Quote:
Originally Posted by bigbobftworth
Aldi is not a franchise group, it is a very large chain and they do have money. About half their locations are leased. The way most big retail and grocery stores operate is as follows:
1. Store is built as a lease from a developer
No money out of pocket from Aldi
2. The product is below average and their own brand but packaged by an indepedent company that puts Aldi's Store brand labels on the merchandise and shipped to the stores, with an invoice that must be paid out in 30 days.
Again no money out of pocket
3. Aldi's and other companies including Wal-Mart operate this way. The only real expense is labor.
Many stores can be opened with very little expense to the operator. But it does not take long if an operators cash flow is very low or even negative to have a great impact on an operators ability to keep stores open. Oh many brands and operators will have like a 3 to 5 year plan to build stores, market share and advertising. But when things are bad, a chain will pull the plug on new markets very fast. Easier to just pay rent and sell off its real estate assets than to keep operating stores.
Wal-Mart like them or hate them is a force and the largest grocery store chain. I prefer Central Market or even Fiesta. They both have the best produce selections in town.
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I love Aldi's. I am in the meat business and think their selection is great.
I found Veal Parimagion (sp? it is late) and they do not have the brands that Target and Wal Mart have. I had a $10 off coupon and bought a steam mop for $30. Lemons I paid $.33 at Wal Mart were $.25 at Aldi's. As i posted in another thread, they will give WM a run for their money
Fiesta is great also, they have like 30X eithic (sp?) stuff 3 scothes