Aldi is making another aggressive move in the U.S. grocery sector by rebranding its private label portfolio and launching its first-ever namesake brand. The rebrand will take place over the next few years. The Germany-founded company said the move is a direct response to customer feedback.
“The new look and feel of our products is the next step in our journey to modernize our simpler, quicker shopping experience. Now, it’s easier than ever for shoppers to instantly spot the value and quality only ALDI can deliver,” said Atty McGrath, who began her role as CEO of Aldi on September 1. “After nearly 50 years of setting the standard in private label, our updated packaging will give shoppers yet another reason to reach for our products first,” she added.
More than 90% of Aldi products are private label, and while the quality of items shoppers know won’t change, they will get a fresh new look. Several brands will be replaced with the ALDI name, while iconic brands like Clancy’s, Simply Nature, and Specially Selected will remain on shelves with modernized branding and the bold “an ALDI Original” endorsement. Other items like “Red Bag Chicken” will adopt shopper-given nicknames.
Earlier this month, Aldi confirmed to Grocery Dive that it plans to add another 200 stores in the U.S. as it continues to grow faster than peers and take advantage of the push by consumers to find value,
Notably, Aldi’s core strategy focuses on offering low prices through private labels, efficiency, and cost controls. The narrow focus has helped to boost Aldi’s global brand recognition in the era of inflation-weary consumers. Looking ahead, Aldi plans to set up its largest New York City store next summer near Times Square in a high-profile opening. Aldi has a U.S. headquarters in Batavia, Illinois, outside Chicago.
Aldi has a dual corporate structure, split in 1961 into the separate family-owned Aldi South and Aldi Nord businesses, which operate in different geographic regions. The company has a U.S. headquarters located in Batavia, Illinois.
Aldi competes in the U.S. to varying degrees with Kroger (NYSE:KR), Safeway (NYSE:ACI), Albertsons (NYSE:ACI), Grocery Outlet (GO), Publix, Walmart (WMT), Costco (COST), Target (TGT), Trader Joe’s, Dollar General (DG), Dollar Tree (DLTR), and Sprouts Farmers Market (SFM). In Europe, Aldi competes with Lidl, Carrefour (OTCPK:CRRFY) (OTCPK:CRERF), Tesco (OTCPK:TSCDF) (OTCPK:TSCDY), Asda, and Sainsbury (OTCQX:JSNSF) (OTCQX:JSAIY).