BUSINESS

The Germans Are Coming!

German grocery chain Aldi Inc. is set to invest over $3.4 billion in a new move to expand their business in the U.S. market.

This should be a welcome move to the U.S. consumers as it opens more opportunities for them in terms of options to purchase grocery goods.

The expansion mode by Aldi to increase its U.S. store base to 2,500 by 2022, will not only force other grocery chains to become more efficient but also effective.

Aldi currently operates 1,600 U.S. stores in the U.S. and has promised to add another 400 by the end of 2018.

Following Aldi’s foray into the U.S. market, German rival Lidl is set to open the first of its 100 U.S. stores starting June 15.

In May, Lidl said it would price products up to 50 percent lower than its rivals.

In the meantime, Wal-Mart Stores Inc. is pushing to regain its lowest price leadership position in the market. 

The world’s biggest retailer is expected to spend about $6 billion to protect its entrenched low-price leadership position, according to market analysts.

Since 2014, there have been 18 bankruptcies in the U.S. grocery market and the new push by the European investors could force more companies into bankruptcies.

Carol Maye, Readers Bureau

Edited by Jesus Chan

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