Aldi to pilot outposts in Kohl’s stores

The German supermarket chain, Aldi, has announced plans to launch 10 outposts in American department store, Kohl’s.

The CEO of Kohl’s, Kevin Mansell, declared last month aims to partner with a “well capitalised” and “high traffic” food retailer.

It is expected that Aldi has made the deal with Kohl’s to generate more exposure, whilst Kohl’s is targeting foot traffic.

Last year, Aldi planned to invest $3bn into its US presence, to remodel existing locations and reach a total of 2,500 stores by 2022.

SEE ALSO:

• Aldi pledges to halve food waste by 2030 

• The Co-op Group launches £160mn expansion plan for 2018

• Kroger stock surges as it considers selling its convenience stores

• Read the latest issue of Food, Drink and Franchise here

The German firm’s stores on average cover around 8,000sqft, 15% smaller than Walmart’s average supercentres, and 75% than Neighbourhood Market stores.

Aldi claims its prices are approximately 50% than its competitors on the market, which is made possible by more private brand items.

The company also uses tactics to cut costs, such as requiring customers bring their own bags and pack them themselves, as well as their carts needing a deposit that instigates them returning them, rather than staff having to do so.

Kohl’s has previously been testing Amazon spaces in its fashion retail stores.