Aldi Continues US Expansion
News: Germany-based supermarket retailer Aldi says it is in the early stage of expanding its presence in the US state of California. The company is in talks to open a new warehouse in California's Moreno Valley, and is planning to spread across southern California. The company has increased its presence in the US without mergers or acquisitions, and has opened an average of 80 new outlets every year in the past few years.
BMI View: The 'no frills' discount segment, which offers very competitive prices by cutting back on overheads and limiting the number of product lines, has been a major beneficiary of weakness in the economy and low consumer confidence. This strong growth has been matched with an uptick in expansion across the sector, with major players such as Dollar General and Family Dollar announcing significant investment programmes for the next year. As such, BMI is forecasting that the segment will experience a CAGR of 3.0% in the five years to 2017, equal to the rate of growth forecast for supermarkets.