Discount retailer Aldi has massive growth plans for the United States. The Germany-based chain has 2,400 stores in 38 states and is investing US$9 billion to open 800 additional stores over the next five years.
“Aldi is growing faster than it ever has,” said Dave Rinaldo, President of Aldi USA, at the Private Label Manufacturers Association (PLMA) annual trade show held in Chicago this month.
“Our greatest fear is not having enough supplier partners.”
Many of those supplier partners exhibited at the PLMA expo, which had a record-breaking 1,800 exhibitors. Manufacturers showcased innovations previously unavailable for private label, including culinary-inspired heat-and-eat meals, new condiments and salty snacks.
“Store brands provide competitive advantages, build consumer loyalty and respond with flexibility to market changes,” said Peggy Davis, President of PLMA. “Business has never been better. As of September 8 this year, store brands reached record highs in market share, achieving 20.4% in dollar share and 22.8% in unit share.”
To continue such growth, it is paramount that manufacturers innovate. They also need to optimise costs along the supply chain.
“We need you to innovate,” Rinaldo said. “When you combine excitement with pricing and quality, that’s where the magic happens.”
Over the past decade, Aldi has evolved with how it works with suppliers. The updated strategy includes establishing long-term agreements with improved forecasting. The company does not take lightly the critical role that suppliers play in its business. And it’s working, Rinaldo said.
