Is Aldi’s move to woo cashed-up shoppers a risk?

Mortimer, Gary (2015) Is Aldi’s move to woo cashed-up shoppers a risk? The Conversation.

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Abstract

While Aldi’s launch of their new “trial” stores may seem to be an attempt to capture middle income shoppers, it may end in disaster. Aldi’s four new trial stores located in Queensland, NSW, ACT and Victoria, will offer improved lighting, larger layouts and an expanded offering of fresh food including extending produce ranges, in-house bakeries and premium brands. Employing Nielsen’s 2014 Homescan Report, Aldi have determined that only 30% of their customers were now considered “low-income shoppers”. Some 34.4% were from middle-income households and the remaining 35.6% now had household incomes greater than AUD$90,000 a year - a segment which has grown by 6.7% since 2011. So this probably the reason for Aldi’s foray into new stores and ranges. However, such a move is considered risky.

Impact and interest:

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ID Code: 92662
Item Type: Journal Article
Refereed: Yes
Keywords: Retail, Supermarkets, Aldi, Shopper Demographics, Retail Strategy
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Advertising, Marketing & Public Relations
Deposited On: 04 Feb 2016 23:01
Last Modified: 08 Feb 2016 22:23

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