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Aldi To Sell Brand-Name Products

10/14/2005

New York City, Aldi, the German discount supermarket chain, will reportedly begin selling a handful of brand-name products, thus marking an end to its own-brand strategies.

Analysts speculate that the giant discount chain’s move to brand-name products could provide opportunities for consumer-goods makers such as Procter & Gamble and Unilever. Previously, Aldi’s “hard discount” strategy differentiated it from its competitors, most of which adhered to “soft discounts.” However, in recent years, Aldi has struggled to maintain its lead in the German market, as soft discounters like Lidi have closed the gap considerably.

Aldi currently runs 7,500 shops in 16 countries, including Germany and the United States.

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