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The Grocer Talking Retail

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Aldi Launches Local Brand

Aldi is trialling a new sub-brand – Aldi Local – which will feature high street shops that are around half the size of its standard stores.

The first Aldi Local opened last week on Balham High Street, in South London, but Aldi already also has smaller city stores in Tooting, Archway, Kingston and Kilburn.

Aldi Local outlets will be around 7,000sq ft in size, compared to the 19,500sq ft of its standard size stores.

A spokesperson for Aldi said the Balham store sells 300 fewer products than a conventional sized Aldi – the main difference is that it doesn’t sell bulkier items that shoppers would have difficulty transporting without a car.

Thomas Brereton, retail analyst for GlobalData, said: “While this is currently only a trial for Aldi, we believe it has a strong chance of success, engaging consumers on the key drivers of both price and convenience.

“However, Aldi’s key concern will be profitability at these stores, which will inevitably drive Aldi’s decision to unveil more of these stores or not; taking the discounter’s currently well-oiled model which involves precise store sizes, shelf locations and space dedication to certain ranges, and attempting to imitate it on a smaller scale will surely throw up unexpected problems.”

Source: Talking Retail Mar 25 | In-store Analysis