Are Stores Like Aldi and Trader Joe's Goldmines for Package Printers?

During my years as a broke college student and recent graduate, visiting the grocery store was a scary adventure. With my meager bank account, there really wasn’t much I could afford at standard supermarkets. That’s when I discovered a different option that could fill my refrigerator and not totally deplete my wallet — Aldi.

At first, shopping at Aldi was a learning experience. Previously, I had never had to insert a quarter into a shopping cart to free it from its corral. And the store was jam packed with brand names I had never heard of. But, the prices were right and the quality of the food was on par with its more expensive competition.

I’ve now been an Aldi customer for close to 10 years, and it seems like American consumers are catching on to this distinctly German style of food shopping. Of course the low prices help, but Aldi also boasts a surprisingly large selection of organic options for the health conscious consumer. As more consumers realize these benefits, more stores are appearing. Check out this report from Fox Business. According to the article, Aldi is aiming to open 900 new stores in the United States as part of a $5 billion investment.

But it’s not just Aldi that’s succeeding in the private label food-shopping world. Trader Joe’s has been dominant in developing a premium grocery shopping experience, selling private label items that compete on a similar level with stores like Whole Foods. And now, another German chain, Lidl, has entered the American market with big plans to expand in the United States.

So what does this mean for package printers? For one, it means that understanding consumer behaviors and preferences remains essential. The growth of Aldi and Trader Joe’s, along with the arrival of Lidl won’t spell the end for traditional supermarkets, but it shows that these smaller, more affordable, private label-focused stores are becoming increasingly popular among consumers. While maintaining a healthy relationship with independent brand owners, food package printers would be well-served to take a hard look at the opportunities in private label to see if their specific needs would be a good fit.

These private labels may not have the same resources as a major CPG, so by making a personal introduction to their packaging decision makers, and explaining your capabilities and knowledge of the markets they serve, these burgeoning retailers may be quick to latch on to a printer that takes the time to understand their specific needs.

I recently received an email from ResearchFarm, a UK based retail analysis firm, discussing their latest report on the growth of Aldi and Lidl in North America. The email poses an intriguing call to action, stating:

…suppliers and manufacturers who invest early into the discounters and support the roll out can really reap the benefits later on.

In other words value creation should be possible in cooperation with the discounters, as these promise faster growth than all other channels in the USA (including online).

Just like the retail world, package printing is cutthroat. The evidence is out there that discount, private label shopping is on the rise, and it would be wise for package printers and converters to at least take the time to explore the opportunities in this market.