European giants Aldi and Lidl launched a trade war in the US market

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Aldi and Lidl - supermarkets, which for 10 years fought for a place in the sun in Europe, decided to settle in the United States, adding competition in a price war.

Aldi, known for its low-priced, proprietary products, plans to spend $ 3,4 billion over the next 5 years to open 900 supermarkets. This was reported by the company on Monday.

Its European rival Lidl preparing for the opening of the first stores in the US this week. By the summer of 2018, management plans to open 100 stores in the United States.

The arrival of German supermarkets can put a lot of price pressure on retailers, such as Wal-mart stores inc. and Kroger Co. This will lead to a further fall in prices, which has been observed for 17 consecutive months. This is the largest figure in more than 60 years.

Kent Nudson, partner Bain & Co., predicts that sales in the so-called "deep" segment of the discount and grocery business, which includes Aldi and Lidl, will grow by as much as 10% per year to 2020, which is 5 times higher than in traditional stores.

American debut

The battle between the two supermarkets will intensify on Thursday, when Lidl will open 10 stores in three states. According to analysts, the company may open as many 600 stores in the United States over the next 5 years. Aldi He also claims that 2020 will open 2500 stores across the country by the year, making it the third largest supermarket chain in the United States.

Only Kroger and Albertsons Coswhich owns Safewaywill keep the lead.

Aldi added more products and increased organic and gluten free offers in recent years. The company also began to offer fresh fish, improved the assortment of meat and increased its choice of national brands. Earlier this year, the company announced plans to spend $ 1.6 trillion on its network in the United States.

Aldi was founded over 100 years ago when Anna Albrecht opened a small store in Essen, Germany. Her sons, Karl and Theo, took over the leadership in 1948 and expanded rapidly. In 1962, the brand became known as Aldiabbreviated from Albrecht Discount. In the same year, the brothers divided the network into 2 companies - Aldi SUD and Aldi Nord — after a dispute over the sale of cigarettes. Aldi sud controls operations in the US while Aldi Nord works with the popular grocer Trader Joe's.

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