retail news in context, analysis with attitude

Fortune reports that discounter Aldi has begun taking credit cards in its 1,500 US stores.

"While Aldi is known for having customers bag their own orders to keep costs low and selling inexpensive equivalents of national brands of a wide range of staples," the story says, "the credit card news is clearly a move toward broadening its customer base. This puts it on a collision course with Walmart, the largest grocer in the United States with some $160 billion in annual sales."

Aldi has said that it plans to have at least 2,000 stores in the US by 2018.
KC's View:
It would seem that Aldi may be willing to sacrifice a little margin for market share ... which should scare the hell out of the retailers that compete with them. Because it will find ways to nibble away at the market shares of a lot of different retailers, and have the kind of impact in the US that it has had in the UK. It'll take longer, but it'll happen.