Shoppers now must drive past Aldi, a Germany-based grocery store chain, when driving to shop at Walmart in many locations across the U.S.
The German grocery chain is now beating the retail giant from the U.S. at its own game, the sale of food at prices that are rock bottom.
Aldi has bet that many people will never reach Walmart after stopping to check them out. Like hundreds of other Aldi stores that have opened of recent all are strategically located to siphon off shoppers of the retail giant who are seeking the best discount prices for their purchases with Aldi prices averaging as much as 20% less than those of Walmart stores.
Aldi stores are not huge in size and do not have the selection of Walmart stores, as they are usually only one tenth the overall size of the average sized Walmart and carry much less in the way of national brands.
Yet the quick proliferation and the ability of the chain to offer lower prices than even Walmart is putting added pressure on the discount giant based in Bentonville, Arkansas.
As Aldi continues to expand aggressively across the U.S., it is becoming only the latest in a series of problems for the discount giant Walmart.
Walmart has not become the only grocer under heavy pressure due to Aldi arriving, as regional chains like Kroger are also being hit. Last year Great Atlantic & Pacific Tea known commercially as A&P and Food Emporium had to file bankruptcy, only three years after it emerged from a prior one.
Fairway Group Holdings might be close to defaulting as it is struggling to expand in New York.
Both are starting to battle competition on the lower end from other discounters like Aldi, and the high end from those like Whole Foods.
Walmart, which has over $298 billion in revenue annually in the U.S. from its more than 3,500 superstores, is on much more solid ground financially.
However, with over 50% of the revenue from its grocery sales, it cannot afford to lose its customer to Aldi.