Aldi Cheaper Than Wal-Mart? Deutsche Bank Conducts Study

The proprietary pricing study indicates Aldi as “the clear price leader” versus Wal-Mart Stores Inc (NYSE: WMT), Deutsche Bank’s Paul Trussell said in a report. He has a Hold rating on the stock.

“Across 43 SKUs priced in two different regions (northern NJ and Orlando, FL), we found Aldi was the price leader vs. Walmart,” Trussell wrote. The Wal-Mart basket was 13.5 percent more expensive on average than that of Aldi, a privately-held company based in Illinois.

Specifics Of The Price Leadership

Aldi led in the food and household & personal care categories, with the food basket at Wal-Mart coming in 14.3 percent more expensive, while the household & personal care basket at Wal-Mart was 12.7 percent higher.

“When looking at only private label SKUs (30 items), Aldi’s price advantage grew further,” Trussell noted. The private label basket was on average 21.4 percent more expensive at Wal-Mart than at Aldi. Taking into account national brands, which included 10 items, Wal-Mart was only 2.5 percent more expensive, on average.

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