NEW YORK — At a Target in upper Manhattan, shoppers can pick from 19 types of ketchup, including well-known names like Heinz and Hunt’s. At the Aldi next door, the three options range from 99 cents to $1.79. All are the chain’s own brands, which doesn’t seem to bother shoppers attracted by the low prices.
“If you look at the ingredients, it’s the same thing. A lot of people don’t realize that,” said Anabel Rosado, a bank supervisor who was browsing the snack aisle.
Aldi and its European rival Lidl, which opens its first U.S. store this week, are hoping to change the way people shop with their smaller, no-frills stores filled mostly with house brands that tend to cost less. Whole Foods, which has fought the “Whole Paycheck” reputation, is also moving into the discount sector with an offshoot chain named after its 365 brand.
The push could further pressure grocery giants like Wal-Mart and Kroger, which are also contending with the growth potential of online grocers and have already been reining in operational costs so they can keep their prices competitive. Target is also trying to become better known for low prices as it works to boost its struggling grocery business.