LONDON, UK - Could a new convenience store–the likes of which will make Amazon Go tremble—be on the horizon? Aldi recently launched its first Aldi Local store in southwest London in Balham, leading to obvious speculation about the retailer’s plan in the convenience sector.

According to a report from Yahoo Finance, Aldi said that its new brand may be rolled out to four other existing stores in Archway, Kilburn, Kingston, and Tooting, if this trial is successful. The new Aldi Local store is 6,000 square feet—half the size of the average Aldi store—and features 300 fewer products.

An Aldi spokesperson stated that, “This is not a move into convenience retailing. The main difference is that it doesn’t sell bulkier items that shoppers would have difficulty transporting without a car.”

Furthermore, the new name—Aldi Local—was given to make shoppers aware of the difference between the smaller and larger stores. She also noted that the Aldi Local is much larger than regular convenience stores.

However, a retail analyst at GlobalData, Thomas Brereton, asserted that the new Aldi Local store showed Aldi’s desire to expand into the convenience sector. As millennial shoppers shift shopping habits, the growth in the sector continues.

“Convenience growth remains largely driven by an increase in the number of consumers doing high frequency, low value food shops, particularly prevalent amid the 25-34 age group,” Brereton said.

Will Aldi’s newest format make its way across the pond? AndNowUKnow will continue to report.

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