Save-A-Lot and Aldi Target Urban Markets

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June 1, 2010

As other large grocery chains de-emphasize urban markets, opportunistic discounters such as Supervalu’s Save-A-Lot and Aldi plan to expand there to fill the void.

In January, Supervalu revealed it planned to double its Save-A-Lot store count over the next five year, and recently added that about 50 percent of those new stores will be in urban markets.

“Some of the urban markets have a dearth of supermarkets that are quality grocers delivering good, nourishing food at good prices,” Bill Shaner, president and CEO of Save-A-Lot told Bloomberg. “We offer a good solution for that opportunity and we are very focused on that.”

Shaner added that they are focused on tapping the under-served “urban food desert” centers. Although Shaner declined to specify which markets it plans to target, he said Washington D.C. is likely one. The chain currently operates in urban markets such as Philadelphia, Cleveland and Detroit.

“We look for locations in neighborhoods, where people actually live, while other retailers are moving into the mega-shopping centers outside of town,” Shaner said.

Meanwhile, Aldi is targeting the country’s largest metropolis, opening its first store in Queens, N.Y., which is expected to open in early 2011. Last year when site plans fell through the discounter cancelled the New York City store opening to seek an alternative site.

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