Both chains of Aldi want to take over American Fresh & Easy, currently owned by Tesco. The British chain had seriously underestimated the cost of conquering a place in the very competitive American market.
Ambitious plans stifled by crisis
Fresh & Easy is a chain of about 200 smaller supermarkets along the West Coast and in Arizona. In the financial year 2011/2012, the company had sales of approximately 750 million euro.
Owner Tesco had ambitious plans for the chain, which started in 2007, and invested around 1.1 billion euro in it. The last few years big losses piled up and thus the project was halted. Apparently a lot of chains underestimate the cost to compete in a competitive market such as the United States. Even finding decent locations is hard work. The added stress of the economic crisis also is not helpful.
Aldi Süd already has Aldi locations in the US, while Aldi Nord has a cooperation with discounter Trader Joe’s. Together both Aldi groups have 1400 locations in the US, so splitting up Fresh & Easy between them both is far from impossible.