Retailers to Watch in 2023: Aldi
Each year brings with it a new set of challenges to the nation’s retailers, and 2022 was no exception. Consumers evolving their shopping habits while also facing inflation rates not seen in a generation required retailers to be nimble to meet the needs of their customers.
As 2022 comes to a close, Store Brands has put together a list of 10 retailers we think are worth watching closely in the New Year. From leading grocery chains to growing e-commerce players, the coming 12 months will see retailers face new challenges, revamp product assortments and provide consumers with new options to meet their ever changing demands.
The profiles of the 10 retailers Store Brands has selected will provide you an overview along with our thoughts on why each is worth watching in 2023.
Overview
Aldi remains a leading retailer in the private label space and during 2022 continued to push the envelope on a host of issues ranging from new product development to issues pertaining to sustainability. Its focus on private-branded products and providing value to shoppers has seen strong traffic growth as consumers look to make ends meet.
What to Watch
There are many things to keep an eye on at Aldi in 2023, but we’ll highlight a couple at the top of our list. With inflation remaining top-of-mind for consumers, the discount grocer could see its customer count continuing to grow.
More shoppers today regardless of their socio-economic status are turning to private label products to save money and also because the quality of these products are at least equal to the higher priced national brands.
While certainly good news, this could provide some challenges given the small footprint of its stores, labor shortages that are impacting all retailers, and the need to keep stores well-stocked with items shoppers want and expect to see. How Aldi responds to these challenges will be something we’ll keep an eye on in the year ahead.
Sustainability is also a major issue being addressed by Aldi. With some 2,200 stores across the U.S., the company continues to evolve its corporate culture as it pertains to sustainability. During the year, Aldi CEO Jason Hart penned a letter to customers to highlight the company’s initiative to phase out plastic shopping bags from all of its stores by the end of 2023.
Additionally, the retailer has taken steps to limit the impact of its packaging on the environment. In an interview with Store Brands, Joan Kavanaugh, vice president of National Buying at Aldi, said more than 60% of its exclusive packaging is reusable, recyclable, or compostable. It also educates consumers with its easy-to-locate How2Recycle logo.
Aldi has also taken other steps and works with organizations such as Fair Trade USA to certify its products are sustainably sourced to allow shoppers to know they are buying products that are not harmful to the environment. This effort will continue into 2023 and we’ll be watching what comes next.