Walmart is getting a blow in its own game as Aldi, a German retail chain, opens around the US offering customer the lowest prices possible.
Walmart has finally received another competitor in the market that is playing the same game played by the retail chain for a while. A German retail chain, Aldi, recently opened up around the United States offering customer products at the lowest possible prices. This impact Walmart, as it loses its cost conscious customers and sales to the German store.
The American retail chain’s store in California is situated at an unfortunate location. In order to get to the store, customers first have to cross the new Aldi store that offers lower prices in comparison to Walmart Stores. Inevitably, these customers turn to the German store. The German chain is so confident that it will manage to steal all of the company’s customers in the area, thanks to the amazingly low prices it offers. It believes the customer will never even make to the US store.
Aldi is winning the game in California because not just because of the prices offered but even its location, which it must have given a fair amount of thought to, leading the customers turning to the store first. The prices offered by the German retail chain are 20% less than Walmart Wholesale. Aldi has so far opened up hundreds of stores, out of which six of these are in Richmond area and the recent one in Beaumont.
Walmart still has an upper hand when it comes to the size of its store and selection; but this is not helping the retailer from facing pressure by Aldi in terms of discounts and prices. The German chain is expanding rapidly in the United States, which could mean, Walmart Stores Inc. has to stay prepared for future while it already has numerous problems in its plate. The company shares were reported to fall by 19% in the past year, now no positive predictions can be made.
Walmart at this point cannot afford to lose its customer base to Aldi, which is applying the same strategy as the US chain. The German shopping company has managed to grow to $13 billion in the US, according to the data of Kantar. Executives of Walmart said that they do have a plan to hit this new competitor hard. It is winning in many areas where it was facing defeat in the past, including cutting jobs and raising wages; it shuts down non-profitable stores, and opened new ones.
The US chain has been making customer experience better by expanding its services. The company is still losing in giving customers low prices. Walmart has to think quickly and act even faster so that it does not lose customers to Aldi, just because of the low prices.
Walmart has finally received another competitor in the market that is playing the same game played by the retail chain for a while. A German retail chain, Aldi, recently opened up around the United States offering customer products at the lowest possible prices. This impact Walmart, as it loses its cost conscious customers and sales to the German store.
The American retail chain’s store in California is situated at an unfortunate location. In order to get to the store, customers first have to cross the new Aldi store that offers lower prices in comparison to Walmart Stores. Inevitably, these customers turn to the German store. The German chain is so confident that it will manage to steal all of the company’s customers in the area, thanks to the amazingly low prices it offers. It believes the customer will never even make to the US store.
Aldi is winning the game in California because not just because of the prices offered but even its location, which it must have given a fair amount of thought to, leading the customers turning to the store first. The prices offered by the German retail chain are 20% less than Walmart Wholesale. Aldi has so far opened up hundreds of stores, out of which six of these are in Richmond area and the recent one in Beaumont.
Walmart still has an upper hand when it comes to the size of its store and selection; but this is not helping the retailer from facing pressure by Aldi in terms of discounts and prices. The German chain is expanding rapidly in the United States, which could mean, Walmart Stores Inc. has to stay prepared for future while it already has numerous problems in its plate. The company shares were reported to fall by 19% in the past year, now no positive predictions can be made.
Walmart at this point cannot afford to lose its customer base to Aldi, which is applying the same strategy as the US chain. The German shopping company has managed to grow to $13 billion in the US, according to the data of Kantar. Executives of Walmart said that they do have a plan to hit this new competitor hard. It is winning in many areas where it was facing defeat in the past, including cutting jobs and raising wages; it shuts down non-profitable stores, and opened new ones.
The US chain has been making customer experience better by expanding its services. The company is still losing in giving customers low prices. Walmart has to think quickly and act even faster so that it does not lose customers to Aldi, just because of the low prices.