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German discount grocer Aldi and its competitor Lidl are making moves to expand further across the US.
Discount grocers have mostly called low-income neighborhoods home, but now they are looking to penetrate wealthier markets as Americans grow more budget-conscious, the Wall Street Journal reports. And the term “discount grocer” is well-earned—these stores charge 25% to 40% less than traditional grocery stores.
The two grocers are able to cut costs by keeping the shopping experience bare-bones. Customers have to bag their own groceries, throw in a quarter deposit to use a shopping cart and choose from 90% house-branded items. [WSJ]
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