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This Is Not America: Why Wal-Mart Left Germany (2006)

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Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#51

Post by BossHogg »

Zigurd wrote: post #43
ctdonath wrote: post #21

Earlier quoted context omitted.

"Not a lot of room" in this case is basically zero. FYI to those unfamiliar with Aldi: their (grocery) stores are fairly small, run in a seriously minimalistic manner. Products are usually presented either on their shipping palettes, and/or still in volume cases - customer does some of the unpacking. Most products are "made for Aldi" or otherwise sourced from bottom-price manufacturers. Variety is nearly nonexistent.…

WIthin a short drive from me there's a Wal Mart, with a grocery section, and an Aldi, right next to each other. I tried the Aldi out of curiosity. I don't know if Aldi screwed up their format for America, but it was baffling to shop there. Heavy on the canned food. Confusing layout. Etc. Trader Joe's gets the "limited selection" thing much much better. Wal Mart caters to ethnic shoppers better. I don't think it works…

It has been working in America for decades. Also, Aldi owns Trader Joe's.

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#52

Post by woodpanel »

usrusr wrote: post #49
_delirium wrote: post #2

While I wouldn't completely discount cultural and business-environment differences, this is probably the most relevant part, > Another fatal flaw was that Germany's retail market is already saturated with discounters such as Aldi and Lidl, meaning that any new arrival inevitably finds itself in the midst of a cutthroat price war. Walmart's model is to do high volume at low margins with a highly optimized supply chain…

As a german, don't even know enough about Walmart to tell if they are in the same game or not. There are two mutually exclusive ways of doing cheap: you either take pride in being cheap our you try to hide it in everything but the price tag, aping pricier retailers in all other aspects (something Aldi or Lidl would never do, minimalistic presentation is the core of their brand identity). The pretend-premium version o…

"Over decades, the (maybe at most semi-true) idea that products bought at Aldi or Lidl will provide high value despite their low price"

I hate to be defending Aldi's rep (or the allegedly faux idea), but as a regular shopper in Germany'S four major chains (Edeka, Rewe,Lidl, Aldi), I must insist: Aldi/Lidl ARE providing a good price-to-value ratio for customers :-)

Of course, with the organic & premium chains popping up the last decade(s) you can get better quality. But those high-quality shops are making up just a small share of the market [1].

Their competitors (REWE/EDEKA) will offer you a wide range of [lets say Beans], ALDI/LIDL will offer you just one. But while that one usually has the quality of the competitor's most expensive version it comes with the price-tag of the competitor's cheapest.

[1] http://de.statista.com/statistik/daten/studie/4916/umfrage/m...

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#53

Post by woodpanel »

Someone wrote: post #47
ctdonath wrote: post #21

Earlier quoted context omitted.

"Not a lot of room" in this case is basically zero. FYI to those unfamiliar with Aldi: their (grocery) stores are fairly small, run in a seriously minimalistic manner. Products are usually presented either on their shipping palettes, and/or still in volume cases - customer does some of the unpacking. Most products are "made for Aldi" or otherwise sourced from bottom-price manufacturers. Variety is nearly nonexistent.…

Also ( https://customerservice.aldi.co.uk/faq ): Q: "Why is my local Aldi store not listed in the phonebook?" A: Because phones cost money for subscriptions, and store personnel that picks up the phone doesn't bring in money. No, that's not what their FAQ says, but generally believed to be true. Shops also don't have toilets for customers, and I remember a story about a shop that didn't have one for its personnel, ei…

It never occurred to me to go to the potty while shopping for groceries. But you're right: I've never seen a restroom sign in an Aldi or Lidl.

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#54

Post by vermontdevil »

joezydeco wrote: post #30
vermontdevil wrote: post #29

Earlier quoted context omitted.

Don't forget $0.25 deposit for shopping cart and bags are extra.

Which keep the stores and parking lots remarkably clean. That simple deposit keeps all the carts up front and organized. Lack of free bags inspires people to take the packing boxes with them.

Yeah - not criticizing it. Thought it was sensible. Also keeps costs down as people wouldn't abuse the carts.

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#55

Post by joezydeco »

BossHogg wrote: post #51
Zigurd wrote: post #43

Earlier quoted context omitted.

WIthin a short drive from me there's a Wal Mart, with a grocery section, and an Aldi, right next to each other. I tried the Aldi out of curiosity. I don't know if Aldi screwed up their format for America, but it was baffling to shop there. Heavy on the canned food. Confusing layout. Etc. Trader Joe's gets the "limited selection" thing much much better. Wal Mart caters to ethnic shoppers better. I don't think it works…

It has been working in America for decades. Also, Aldi owns Trader Joe's.

There are actually two Aldi companies. The Albrecht brothers split the company in the 1960s over an argument about selling cigarettes.

Aldi Nord owns Trader Joe's and Aldi Süd owns the North American grocery stores.

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#57

Post by skrebbel »

wink wrote: post #56
joezydeco wrote: post #31

Earlier quoted context omitted.

IKEA.

True, but I think werber was referring to grocery stores (or the like).

But that's hardly something unique to Germany then. Off the top of my head, the Netherlands, France, Belgium, Spain, UK, Germany, Denmark, and Finland all have their own set of national grocery store chains, with only very little cross-border movement (Aldi and Lidl are the big exceptions).

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#58

Post by joezydeco »

skrebbel wrote: post #57
wink wrote: post #56

Earlier quoted context omitted.

True, but I think werber was referring to grocery stores (or the like).

But that's hardly something unique to Germany then. Off the top of my head, the Netherlands, France, Belgium, Spain, UK, Germany, Denmark, and Finland all have their own set of national grocery store chains, with only very little cross-border movement (Aldi and Lidl are the big exceptions).

SPAR is the other exception.

https://en.wikipedia.org/wiki/Spar_(retailer)

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#59

Post by chestnut-tree »

Kalium wrote: post #11
untog wrote: post #8

Earlier quoted context omitted.

I do wonder what the effect of this is on dairy farmers.

If recent events in the UK are any guide, they get really unhappy over low prices. Your basic economic forces take it from there. Dairy farmers are like any other business in that many can stand to be more efficient.

"If recent events in the UK are any guide, they get really unhappy over low prices."

Dairy farmers in the UK were complaining that some supermarkets were paying them less for a litre of milk than what it cost them to produce the milk. After protests from farmers, those supermarkets - which included Aldi, Lidl, Asda (owned by Walmart), and Morrisons - agreed to pay more for the milk price.

The cost of milk is pretty cheap in the UK. Four pints (2.27 litres) of fresh (not UHT) semi-skimmed milk is usually 90p to £1 in most UK supermarkets (that'a approx €1.37 or $1.50)

"Dairy farmers are like any other business in that many can stand to be more efficient."

I don't know if farming practices are inefficient in the UK, but it's worth asking: what does efficiency mean when it comes to farming and animal welfare? I don't want to see dairy farmers go out of business or for milk to be imported. And I don't want to see more "zero grazing" farms where intensive indoor grazing is the norm and cows have little or no outdoor access. Intensive farming methods like this are already used in the UK and continental Europe and look set to grow. Perhaps it's really for us as consumers to ask: what price are we prepared to pay for milk?

Re: This Is Not America: Why Wal-Mart Left Germany (2006)

#60

Post by ctdonath »

Someone wrote: post #47
ctdonath wrote: post #21

Earlier quoted context omitted.

"Not a lot of room" in this case is basically zero. FYI to those unfamiliar with Aldi: their (grocery) stores are fairly small, run in a seriously minimalistic manner. Products are usually presented either on their shipping palettes, and/or still in volume cases - customer does some of the unpacking. Most products are "made for Aldi" or otherwise sourced from bottom-price manufacturers. Variety is nearly nonexistent.…

Also ( https://customerservice.aldi.co.uk/faq ): Q: "Why is my local Aldi store not listed in the phonebook?" A: Because phones cost money for subscriptions, and store personnel that picks up the phone doesn't bring in money. No, that's not what their FAQ says, but generally believed to be true. Shops also don't have toilets for customers, and I remember a story about a shop that didn't have one for its personnel, ei…

I have a 5 year old. Yes, Aldi does have toilets for customers. (Every time we walk in the store...)
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