The German Chain That's Beating Wal-Mart at Its Own Game

  • German rival's spaghetti sauce 50% cheaper, beans 18% less
  • Fees for shopping carts and bags help Aldi keep lid on prices

Aldi Versus Wal-Mart: The Grocery Low-Price Challenge

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In the Southern California town of Beaumont, Wal-Mart shoppers must first drive past the new Aldi, a recent addition to the family-owned German grocery-store chain that is beating the U.S. retail giant at its own game: selling food at rock-bottom prices.

Aldi is betting that many in Beaumont will never make it to the Wal-Mart. Like hundreds of others Aldi has opened in recent years, the Beaumont store is strategically located to siphon off the retail giant’s discount-seeking shoppers with prices that can average almost 20 percent less than those at Wal-Mart Stores Inc.