What follows is only my opinion.
Strategy is the least understood aspect of business. Even well-known retailers can make decisions they think are strategic but they’re not.
For example, “ALDI USA and Instacart, the leading grocery technology company in North America, have announced ALDI Express, a new Instacart-powered virtual convenience store, that gets ALDI-exclusive products to customers’ doors quicker than ever. From convenience items such as prepared foods, snacks and drinks to grocery staples and household essentials, ALDI Express gives customers access to nearly 2,000 of the most-shopped ALDI items, delivered in as fast as 30-minutes. ALDI Express convenience delivery is now available to customers from more than 2,100 ALDI locations across the country.”
Note to ALDI: I strongly advise you to dump any mention of 30-minute delivery. I guarantee that Instacart delivery drivers will feel pressured to hit the 30-minute threshold leading to unnecessary accidents that will tarnish the Aldi brand.
Is ALDI Express the right strategy? ALDI appears to think so:
“We know our customers live hectic lives, and sometimes that means they don’t have time to make it to the grocery store – even for a quick trip,” said Scott Patton, vice president of National Buying at Aldi. “Through Aldi Express, we’re making shopping more convenient so you can satisfy a craving or get a missing ingredient in minutes. Together with Instacart, we’ll continue to find ways to innovate and make the online grocery experience even more effortless and accessible.”
Apparently, the executives at ALDI (Jason Hart, Eric Riegger) have determined that being the leading discounter in the world isn’t enough. ALDI is now a convenience store. I wonder who put that idea into their head… My guess is that it was Instacart:
“We’re proud to deepen our partnership with ALDI through the introduction of ALDI Express. With this launch, we’re making it easier for customers nationwide to get their favorite ALDI staples delivered faster than ever before,” said Ryan Hamburger, Vice President of Retail at Instacart.
Making ALDI a competitor of Dash Mart, a virtual convenience store operated by DoorDash, isn’t only the wrong strategy, it’s a bad idea. If this is the best Instacart can do for ALDI, ALDI should partner with DoorDash. Tony Xu will agree with me, I’m sure.
I am a fan of ALDI. Instead of thinking small, ALDI needs to Think BIG. I strongly advise ALDI to contact Mark Edwards, the founder and CEO of 345 Global, and have a conversation with Mark. 345 Global has the best AI, AR/VR, digital twin, e-commerce, and integrated store planning software on the market. Instacart doesn’t have anything that can compete with the software from 345 Global. A demo of the software will convince ALDI that I’m right.
Mark will be able to present ALDI with a new vision for the company. Mark will help ALDI Think BIG. 345 Global can transform ALDI.
