The American War Over Food
The battle over American's food-buying is heating up. Aside from Amazon making its dramatic entrance to the market with the acquisition of Whole Foods, Walmart, Kroger, and other big chains are contending with the entrance of low-cost European rivals Aldi and Lidl to the US market. The hotbed of activity is in Virginia and the Carolinas, where the European chains have started their onslaught. Stores are working on razor thin margins and price deflation has grabbed hold. Smaller chains are the ones that seem most in trouble, as they do not have the scale to lower prices and stay profitable.
FINSUM : We must say, we are very much in favor of more price competition in the food space. Many Americans do not realize it, but our groceries are very expensive compared to many other developed countries, Europe in particular. Many items cost twice as much in the US, and having lived in multiple European countries, grocery bills in the US are often 60% higher despite quality being the same.