That’s what Aldi and other deep-discount chains are betting as they make a big expansion push across the U.S.
Up until now, the German chain and competitors like Lidl and dollar stores have mostly attracted cash-strapped customers. Now they’re moving into wealthier areas as Americans of all stripes get more budget-conscious and their traditional low-to-middle-income niche gets crowded with competitors. Aldi is going even further in appealing to upscale tastes by stocking some fancier goods, such as organic foods.
Bernstein Research analyst Alexia Howard expects discounters to more than double their average annual sales growth to 15% between 2015 and 2020, from 6% over the prior five years. “They seem to have rolled up their sleeves and planned to make inroads with major expansions,” Howard says.
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