Shortly after blogging yesterday about The New York Times' piece on Aldi's and Walmart's move to urban areas, I read a brief analysis about the two retailers.
A Gerson Lehrman Group expert contributor wrote that Aldi has quietly drawn the battle lines for market share against Walmart's new small format initiative. The author believes Aldi has some significant advantages, so much so that it may well outperform Walmart in market share and pricing strategy.
The author's analysis:
1. Aldi has beat Walmart to the market.
2. Aldi has a small format smaller than Walmart's.
3. Aldi's margins are better than Walmart's.
4. Aldi has avoided negative publicity.
5. Walmart may have the advantage in its ability to skew assortments to specific market segments, like Hispanic or Asian populations.
More details here: Gerson Lehrman Group