Aldi Inc. - Optimizing Profits in Economic Recession

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR348
Case Length : 11 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Aldi Inc.
Industry : Retail
Countries : US, Germany

To download Aldi Inc. - Optimizing Profits in Economic Recession case study (Case Code: BSTR348) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

"They love competition, and this economy [US economy] suits them very well. It's almost as if, the worse it gets and the more competition there is, the more likely you are to see Aldi start to spring up." ¹

- Terrie Ellerbee, Associate Editor for the Supermarket Trade Publication, the Shelby Report, in July 2009.

"People want to stretch their dollar and want to get bang for their buck, so they're trying us. And it's certainly the quality that's bringing them back." ²

- Heather Tarczan, Spokesperson for Aldi, in July 2009.

Introduction

The US-based Aldi Inc, part of the Aldi Süd division of the Aldi Group (Aldi) based in Germany, was named as the 2009 Retailer of the Year by PL Buyer³ magazine. During the time of recession in the US, when many retailers faced losses, Aldi experienced an increase in consumer footfall in the US. Aldi's sales in the US increased by 21 percent in fiscal 2008 as compared to fiscal 2007.⁴

Jason Hart, President of Aldi, said "Prior to the economic slowdown, we were prospering. But now we're seeing customers looking to save money, and our foot traffic has increased. There seems to be more demand for our stores, and people don't want to sacrifice quality."⁵

Aldi Inc. - Optimizing Profits in Economic Recession - Next Page>>

1] Dawn Kent, "Aldi Looks at Pelham after Crestwood Opening," www.al.com, July 19, 2009.
2] Dawn Kent, "Aldi Looks at Pelham after Crestwood Opening," www.al.com, July 19, 2009.
3] PL Buyer is a monthly magazine published by the US-based BNP Media. It provides in-depth profiles of the industry's most successful retail chains, category reviews on all product segments, and special reports on key areas of retailer interest (Source: www.privatelabelbuyer.com).
4] "Bare-Bones Aldi Expands as US Shoppers Struggle," http://www.thelocal.de, August 24, 2009
5] Steven Gray, "Aldi: A Grocer for the Recession," www.time.com, October 28, 2008.

Case Studies in Business Strategy Volume VI

Case Study Volumes Collection

Business Strategy
Workbooks Collection