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How Aldi is taking on American supermarkets with its $4 almond butter

How Aldi is taking on American supermarkets with its $4 almond butter

For some urban travelers, the new city location offers a better experience than older formats. Kelvin Dozier, who normally shops at Aldi in Brooklyn, recently started visiting the Manhattan location right across the street from his office for convenience. “The one here is brighter,” Dozier told the BBC, eyeing the sweet, fresh Navel oranges in

For some urban travelers, the new city location offers a better experience than older formats. Kelvin Dozier, who normally shops at Aldi in Brooklyn, recently started visiting the Manhattan location right across the street from his office for convenience.

“The one here is brighter,” Dozier told the BBC, eyeing the sweet, fresh Navel oranges in his basket. “The one in Brooklyn is a little smaller. It almost seems temporary, but here it seems like a permanent location.”

Still, winning over city dwellers accustomed to premium brands remains an uphill battle. Ralph Montenegro, who visited Aldi for the first time, remained fiercely loyal to his competitors.

“It has more variety than, say, Target,” Montenegro said, praising the prices on staples like flour and fruit, though he noted he still prefers Trader Joe’s. He added that Aldi’s heavy reliance on packaged and private label processed foods was a detractor compared to the natural organic options it prefers.

This strict reliance on limited private brands is exactly what keeps Aldi’s overhead low, according to Dustin York, associate professor of communication at Maryville University.

He says Aldi is aiming for an agile, highly efficient model that provides around 80% of what a large traditional retailer offers, but at a much lower cost.

Still, York maintains that Aldi is unlikely to take spectacular market share from Walmart, because the retail giant is simply too big. “I call Walmart the battleship and Aldi a kind of submarine.”

But navigating those turbulent waters can come with clear financial danger.

“Your biggest kryptonite is the cost of real estate,” York warned, pointing to a brutal retail landscape in Manhattan where average rents are between $350 and $700 per square foot.

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