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The new chief executive said he would steer away from price wars with discount grocers such as Lidl and Aldi.
He plans to offer prices below those of the hard discount grocers Aldi and Lidl by selling non-branded staples in basic surroundings, possibly with limited opening hours.
The biggest beneficiaries have been dollar stores and discount grocers like Aldi and Save-a-Lot, which offer a limited selection at extreme discounts.
He added that the wage rise would be a new boost to the discount grocers, which employ relatively few staff in relation to the amount of goods they sell.
They sit in a rather forlorn grid between the Union Pacific rail yards on the south and the commercial stretches of Broadway on the north, where signs for discount grocers compete for attention with auto repair shops, motels and a Salvation Army thrift shop.
The most fearsome are a family-owned, publicity-shy trio from Germany: Lidl and two firms called Aldi, which separated to form northern and southern branches in 1960.In Europe the sales of discount grocers (including those of a softer sort, like Penny Markt of Germany and Dia of Spain) will grow at a rate of 4.8% a year until 2017, predicts Kantar Retail, a market-research firm.
Similar(47)
In the UK, some shoppers think it is a discount grocer, according to research by one rival retailer.
The retailer's ads have inspired dozens of parodies, including a version of last year's Man on the Moon ad by the discount grocer Aldi.
And if the city is "understored," the future is also found in long downbeat Uptown, where a Target store opens July 25 at Broadway and Montrose Avenues, adjacent to an existing Aldi, the German-owned discount grocer.
A transaction would give Supervalu, a discount grocer, more than 1,100 new stores in urban markets, including Chicago, and allow CVS, the drugstore chain, to add 700 stores, mostly in the West.
The United States operation of the German discount grocer Aldi Süd, based in Batavia, Ill., named the Birmingham, Mich., office of McCann Erickson Worldwide as its advertising agency of record, responsible for marketing communications and ad services.
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