{"id":7611,"date":"2017-07-06T05:13:25","date_gmt":"2017-07-06T12:13:25","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=7611"},"modified":"2024-08-07T09:18:28","modified_gmt":"2024-08-07T16:18:28","slug":"location-focus-aldi-expands","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/location-focus-aldi-expands","title":{"rendered":"Location in Focus as Aldi Expands"},"author":471,"featured_media":7631,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[],"department":[476812],"wherenext-category":[],"industry":[],"class_list":["post-7611","wherenext","type-wherenext","status-publish","format-standard","has-post-thumbnail","hentry","department-business-growth"],"acf":{"short_description":"Supermarket chain Aldi will add nearly 900 U.S. locations. The company\u2019s ability to find the right locations will determine its success. ","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"If competition is what makes companies stronger, then German supermarket chain Aldi has great news for its American rivals\u2014the company plans to establish nearly 900 additional US locations and invest $5 billion to strengthen its market position. As with any expansion, location planning will be a prime determinant of success.\r\n\r\nAldi sells a large assortment of cost-effective, private-label goods and few nationally recognized brands, catering to a customer base looking for lower prices on staple items. This has proved especially popular with Millennials, and Aldi\u2019s success with younger shoppers and other value seekers triggered its growth plans.\r\n\r\nIn the competitive grocery market, the Aldi expansion is significant, notes a recent <a href=\"http:\/\/www.foxbusiness.com\/features\/2017\/06\/11\/discount-grocer-aldi-to-add-about-900-stores-in-u-s-expansion.html\">Fox Business article<\/a>:"},{"acf_fc_layout":"quote","image":7741,"text":"The expansion, over the next five years, puts the German grocer on track to becoming the third-largest food retailer in the US by store count, behind the larger Wal-Mart Stores, Inc., and Kroger Co., and a growing threat to traditional food retailers. Aldi said it is expected to have a total of 2,500 locations across the US by 2022.","author_name":"","author_profession_organization":""},{"acf_fc_layout":"content","content":"The move comes as US grocers digest the news that Amazon will spend nearly $14 billion to acquire Whole Foods. That move, by a company that has earned a PhD in delivering goods efficiently to the right customers, raises the stakes for every brick-and-mortar grocer in the country. Aldi must find and engage its ideal customer type as it scales its US business.\r\n\r\nSo how should a major food retailer go about finding those customers and selecting the most profitable sites for its growing chain? For starters, any expanding company should employ a location analytics-driven process that evaluates customer drive times to potential locations, the age composition of people living or working in the vicinity, their income levels, and other market factors.\r\n\r\nLeading companies go a step further, supplementing that analysis with insight into the psychographics of their customer base.\r\n\r\n<strong>\u00a0<\/strong>\r\n\r\n&nbsp;"},{"acf_fc_layout":"content","content":"<strong>Psychographic Tendencies <\/strong>\r\n\r\nPsychographics are accumulated and analyzed consumer data points that paint detailed pictures of people\u2019s likes and dislikes; motivations; and, ultimately, buying habits. Companies use this information to connect with and influence customers. If you can determine what your customers care about, you can better serve them. A <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/psychographics-market-analysis-moves-beyond-demographics\/\">recent <em>WhereNext<\/em> article<\/a> explains the concept behind this technique:"},{"acf_fc_layout":"quote","image":7751,"text":"Psychographics broadens the scope from focusing on who a person is, to what that person believes in. Psychographics identifies lifestyle habits, values, attitudes, and other defining attributes.","author_name":"","author_profession_organization":""},{"acf_fc_layout":"content","content":"In short, any expanding business\u2014grocery chain or otherwise\u2014that can intimately relate to its customers will be better positioned to find the right opportunities to meet those customers in the marketplace.\r\n\r\n<strong>\u00a0<\/strong>\r\n\r\n<strong>The Importance of Location <\/strong>\r\n\r\nIn an environment marked by thin margins and relentless encroachment by online retailers, brick-and-mortar grocers need to mine every available insight to connect with customers.\r\n\r\nAnd yet, combining psychographic information with traditional demographics to pinpoint the best locations for an expansion can be a voluminous undertaking\u2014especially when scaled to hundreds of new stores. Without distilled insight and visual guidance, that data can quickly overwhelm planners."},{"acf_fc_layout":"image","image":7771,"image_position":"right","orientation":"horizontal","hyperlink":""},{"acf_fc_layout":"content","content":"&nbsp;\r\n\r\nTo meet the challenge, many industry leaders enlist <a href=\"https:\/\/www.esri.com\/en-us\/what-is-gis\/overview\">geographic information system (GIS) technology<\/a>. GIS marries powerful customer insights\u2014like demographics and psychographics\u2014and enables smart mapping to help retailers cut through the confusion to identify ideal the placement for new stores.\r\n\r\nRetailers that expand without a detailed strategy for <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\/overview\">location analytics<\/a> could find themselves quickly retrenching. To ensure that they invest in profitable store locations, Aldi and other retailers would do well to understand the demographic <em>and<\/em> psychographic makeup of their customers in every market those companies plan to serve.\r\n\r\nArmed with that knowledge, retailers can identify the ideal locations for building long-term relationships with customers."}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Location Analytics Will Play Key Role as Aldi Expands US Grocery Business<\/title>\n<meta name=\"description\" content=\"German supermarket chain Aldi will add nearly 900 US locations. 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