The opening of Aldi has raised questions regarding its effects on grocery stores across the street and the local economy. Will the new addition affect Hy-vee and Fareway?
What sets Aldi apart from its competitors? Aldi’s goal is to run efficient, low-cost stores, providing the lowest prices for consumers and the highest quality products.
The regional vice president for Aldi, Heather McCarthy Dwight, says, “Our stores are designed to make grocery shopping smarter, faster, and more accessible. This business model gives Bettendorf a new range of products and prices unavailable previously. We’ve been voted the price leader for five years.” Aldi’s commitment to low cost products provides a new alternative for Bettendorf consumers.
The addition of Aldi will have many positive socioeconomic effects on our local economy. Aldi can help many families affected by the high costs of everyday groceries due to inflation, helping cushion the growing food problems in our society.
There are many questions regarding the effects on other grocery stores. Hy-vee will not see a dramatic change in its prices. The diverse selection helps Hy-vee keep customers for products that Aldi does not hold. In addition to the large array of products, Hy-vee has a dine-in restaurant and a Liquor and Pharmacy store, all things Aldi does not sell.
The only products that can change in Hy-vee are food items such as vegetables and milk, as Aldi usually dominates the market in those sectors with some of the lowest prices in the country.
Deen Nair PVHS senior says, “I usually went to Hy-vee for most of my produce and milk, but the low prices have made me interested in buying more food from Aldi. I still would go to Hy-vee if I need to grab a quick dinner or if I need medicine.”
Fareway is a smaller, more locally owned and run chain with stores mainly in Iowa. While Hy-vee operates only in the midwest, Aldi is a national brand. With its smaller area of operations, Fareway has many competitive advantages over its competitors. They have some of the freshest meats and produce due to simple supply chains directly connected to local farms in the midwest. The local connections of their food are one of the main reasons why many happy customers return each week for their grocery needs for the week.
The new addition in our community, many had similar comments: “Aldi will definitely provide competition for Fareway and Hy-vee, creating a competitive market with fair prizes. But much will not change in the dynamic of these supermarkets. The other two smaller stores are unmatched by Hyvee’s myriad of selections and dine-in restaurant.”says senior Anagha Sudhindra.
It is safe to say that the addition of Aldi will result in more good than harm for our local economy. It will also not affect its competitors because their business models are vastly different, resulting in an array of products for Bettendorf’s consumers at competitive prices.
