Grocery store chains simply are not equipped to handle international expansion; the lack of understanding, communication, cultural differences, and lack of resources are just a few of the common business challenges that grocery store chains face in the international market.
Aldi has made its home in Germany for decades, but has been expanding to other parts of the world since the 1970s. They have 2,000 stores in the United States, but have not made their way to Canada.
Aldi is planning a Canadian expansion. The company is still growing in the U.S. While Aldi is expanding to several states in the U.S., they’ve also had to close a number of stores due to the economic downturn. These closings have reduced the company’s expansion plans, and Aldi is looking into Canada as a potential new market to expand into.
Is Aldi Coming To Canada In 2022?
Aldi Canada is a division of Aldi S.a.r.l., a European food store chain. Aldi Canada, established in 2012, is headquartered in Montreal. The majority of the stores are in Quebec, Ontario and other western provinces.
How Much Aldi Do I Need?Aldi stores sell basic grocery products at a lower price than most other stores. Aldi’s prices are competitive, particularly for the types of products they sell. The price of basics isn’t always the main reason people choose Aldi.
Why Isn’t Aldi Coming To Canada?
Aldi has apparently started to grow its market share in the US with the help of its extremely low prices. It has also ignored the Canadian market for a number of reasons.
That core business model is what keeps the shelves fully stocked. No matter what, a person can always count on finding a great selection of everyday food and household essentials.
A study was done and compared Aldi’s price to similar stores. The comparison looked at the price of two kinds of vegetables (tomatoes and potatoes) and one kind of meat (mutton chops). The study found that Aldi, with their more expensive product prices, was on average $10 cheaper per 20 pounds of both types of vegetables, and $5 cheaper per 5 lbs of meat, compared to the local retailers.
Discount supermarkets are already very widespread and popular in Canada and are even expanding quickly. For example, the discount grocery market has been rising in a large number of cities in Canada, such as Calgary, Mississauga, Kingston, and Montreal.
While American shoppers visit Aldi and come out impressed, if not downright shocked, at the low grocery bills, Canadians would be tough to impress.
The real reason Aldi hasn’t come to Canada is that of geography. There is no real land for them to sell into. Aldi is owned by Lidl Germany, a German retailer known for low prices. Aldi stores are located at the edge of towns and cities, so they can grow into nearby towns without having to own their own real estate.
Aldi is very careful when it comes to choosing the locations of its stores, making sure to choose locations which are ideal and well-suited for the products they sell.
With its commitment to keeping its overhead low (to pass the savings onto shoppers, of course), it’s tough to imagine Aldi digging into deep into its coffers for a market where they’re not 100 percent sure of success.
Lidl actually even set up tentative headquarters in Mississauga (outside of Toronto), hire employees and research site possibilities.
The problem with this is that Lidl is in a different country, in a different time zone, and has a different market than Walmart Canada.
In many ways, Aldi’s international expansion has just been getting started. As a U.S. company, the grocery giant is only starting to test the waters overseas.
But when Aldi first began to expand internationally, it faced more hurdles that just the language barrier. The key differences between German and U.S. markets included consumer habits, demographics and even attitudes toward capitalism.
Do Shoppers Want Or Even Need Aldi In Canada?
The Aldi hype factory works so well that even if Canadians do not really need Aldi stores in their already discount-focused country, Canadians want them.
Many of us are disappointed that most of our favorite stores are forced to close because of the coronavirus, but some of us are looking for a way to continue shopping at Aldi. Some even travel to a country just for Aldi!
One person said they were “waiting desperately” for Aldi to open in Canada.
While not all of Aldi’s stores have a Pet Store or Pet Section, many do, making it easy to find any necessary supply. You can also find a host of healthy dog and cat food and treats at Aldi, which is a great way to get your pet food on the cheap, and an even better option than high-priced pet food outlets. You can find affordable and good-quality pet supplies, such as collars and leashes, at Aldi.
Where Could Aldi Build Stores In Canada?
And the first stop would probably be Toronto, the country’s most populous city. But there are some caveats. Toronto may be bigger than the city Aldi is used to, Germany, but Toronto is also an international city, which could be a problem. Aldi is used to a more mono-cultural environment in Germany. In some places in Toronto, there are a large number of immigrants from all over the world.
As far as density, Canada is comparable to the U.S. The US population is higher because it has a higher density.
To learn more about Aldi’s current opening hours and if it is expanding to new stores, see our current post on Aldi opening hours. If you still have questions after reading our post, you can start a discussion in our forum.
Conclusion
Aldi is not coming to Canada in the near future, and there is no evidence that they are going to open a store here anytime soon.
It seems like they’re already on a path to doing so. The company has started making inroads into
Canada. The first Aldi supermarket opened just outside Montreal, Quebec in 2017, and later this year,
Aldi is planning to open up to 40 additional stores across Canada.
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