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Reuters reports that Aldi has conducted market studies leading it to believe that its prices are on average 21 percent cheaper than the competition's - including Walmart's.

CEO Jason Hart says that his goal is to maintain and press that advantage.

The story says that "his strategy, previously unreported, centers on adding more private-label goods, which are a retailer's in-house brands, to win over price-sensitive customers, and a massive expansion to further disrupt a U.S. grocery sector that has seen 18 companies go bankrupt since 2014.

"Hart's plan calls for spending $1.6 billion to expand and remodel 1,300 U.S. stores, and open 400 new stores mainly in Florida, Texas and on both coasts by end of 2018. He also pledged Aldi will be willing to change prices more frequently to respond to rivals if needed."

And, "though it only accounts for only about 1.5 percent of the U.S. grocery market, Aldi is growing at 15 percent a year, whereas Wal-Mart currently controls about 22 percent of the market and its U.S. sales are estimated to grow about 2 percent this year, according to analysts."
KC's View:
My consistent view on this has been that even if Aldi is not as successful in growing its footprint as it hopes, the marketing efforts that go into this - especially when it works to blunt the impact of Lidl entering the US - have the potential of having a real impact on the marketplace. It can shape expectations in tangible ways, which could force down prices and margins even among retailers that don't directly compete with it.

It would be foolish to underestimate the potential impact, I think. Doubters should just reference the UK retailers that have seen their market shares shrink as Aldi's and Lidl's have grown.