Discount grocer Aldi finally announced it will start opening stores in the Phoenix area in November and December, but Jack Sinclair, the CEO of Phoenix-based Sprouts Farmers Market Inc. said he isn’t too concerned about it.
While Aldi is new to Arizona, Sprouts has been competing with the brand in other markets for a while, most recently in Southern California where Aldi made its last big expansion.
“When Aldi comes next to us, it doesn’t make a lot of difference to our business,” Sinclair said on a conference call with analysts on July 29. “If anything, it drives a little bit of traffic to us.”
Of the four Aldi stores opening in 2020, two – in Chandler and Peoria – are located at the same intersection as existing Sprouts locations. Aldi actually looks at where other grocery stores are located when doing site selection and opens nearby.