Home Grocery Shopping
Kiersten HickmanUpdated: Nov. 02, 2023
It seems like you can't beat Aldi's prices! We found a bunch of reasons the supermarket can keep its prices at rock bottom.
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Aldi avoids brand names
Why is Aldi so cheap? At most supermarkets, you’ll find tons of name-brand items, but at Aldi, a whopping 90% of the products are private label. By avoiding brand names, Aldi can skip going through another company and offer you cheaper prices. Make sure you stock up on these value items from Aldi the next time you visit.
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Many name-brand products are overstock
The few name-brand products that Aldi does stock tend to be either discontinued or overstock products. This lets Aldi purchase products at a reduced price, and in turn sell them at a lower cost to customers.
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They source meat from regional farms
You’ll find that meat is cheaper at Aldi than at competing stores, too. They typically purchase meat from regional farms. Buying local usually means the company can pay less for the transportation of the product. In return, this means a lower cost for customers.
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They have a small selection, which means smaller stores
Did you know that Aldi only offers a selection of 900 core products? Since they don’t have national brands, they have less to warehouse and display in the store. This means having smaller stores compared to most other grocery retailers, and in return, lower rent!
While Aldi is pretty close to being perfect, there are some things youshouldn’t buy at Aldi.
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Courtesy Aldi
They take less time restocking shelves
Aldi’s design was specifically made for minimal stocking and upkeep. Other stores may have beautiful displays, but employees have to constantly restock them. At Aldi, products are inside boxes or simply stacked on each other, making it much easier for employees to restock. Here are a few things that Aldi employees wouldn’t tell you.
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They use boxes, milk racks and pre-packaged produce
Boxes aren’t the only way Aldi saves time (and money). Products such as milk and even produce help reduce the upkeep at an Aldi store. Milk already comes in racks, and produce is pre-packaged and ready for checkout.
We’ve got the truth to debunk some popular Aldi rumors, like not having organic options, so any hesitation for shopping at Aldi can be thrown out.
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They use energy-efficient store design
Aldi recently remodeled some of its stores to save money. They used recycled materials, energy-saving refrigeration and LED lighting. A modern design brings natural light into the store, making it environmentally friendly, too.
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They have minimal decoration
While stores like Trader Joe’s may also offer cheap items, Aldi uses a cost reductive trick that allows them to be a top ranking budget friendly store. Unlike Trader Joe’s custom murals and fancy packaging, Aldi has embraced a minimalist decorating. By skipping expensive embellishments, Aldi is able to pass even more savings on to its customers.
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They have fewer workers
Aldi will often schedule only two or three staff members at a time. That’s nothing compared to the number of employees you’ll see at other markets. With the way Aldi is designed, not as many workers are needed to stock the shelves or keep things in order. This also allows the store to pay those employees a decent paycheck.
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Aldi customers bring their own bags
Aldi doesn’t bother buying as many plastic bags as other stores, thanks to their bag policy. If you end up using an Aldi plastic bag, you’ll have to pay for it. This is to encourage customers to bring their own bags—keeping the store a green environment and putting money back into customer pockets.
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They don’t have a ton of TV ads
Have you ever seen a Walmart or Target ad on TV? Yes. Aldi? Probably not. Although Aldi does have a small television campaign, advertisem*nts on television aren’t seen as frequently as other popular brands. This means Aldi has extra money to save for what they do best—bringing you cheap groceries.
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Courtesy Aldi
They have reduced hours
While many grocery stores are open for 12, 18 or 24 hours a day, most Aldi locations are only open for 11 hours or less. This allows the chain to save on wages and reduces operational costs. Get to know everything about Aldi’s Saver tags and make your next trip as easy as pie.
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They have a smart shopping-cart rental system
Aldi use a renting system where you must put a quarter in a shopping cart in order to unlock it and use it. This gives people an incentive to return the cart, which means the retailer doesn’t need employees to bring the carts back. Didn’t know about that? Well, here are five things to know before shopping at Aldi.
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They’re about consumers, not profits
Unlike most supermarkets, Aldi doesn’t charge suppliers for shelf space and keeps their terms simple. According to Australian newspaper The New Daily, Aldi claims it wants “to suck the profitability out of the [supermarket] industry in favour of the consumer.” Every decision the company makes always has the customer in mind, and it pays off.
Originally Published: March 06, 2020
As an expert in retail strategies and grocery store operations, I've closely analyzed the article discussing Aldi's pricing strategies and operational tactics. My in-depth knowledge allows me to shed light on the evidence presented in the article and provide additional insights into the concepts used. Let's delve into each point:
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Private Label Emphasis: Aldi's commitment to offering private label products (90% of its inventory) is a key strategy. By avoiding brand names, Aldi eliminates the need to go through intermediaries, enabling them to provide products at lower prices.
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Overstock and Discontinued Items: Aldi stocks a few name-brand products that are often discontinued or overstocked. This allows them to purchase these items at reduced prices, passing on the cost savings to customers.
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Regional Meat Sourcing: Aldi sources its meat from regional farms, which reduces transportation costs. Buying locally enables them to pay less for the transportation of products, resulting in lower prices for customers.
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Limited Product Selection and Smaller Stores: Aldi's focus on a core selection of 900 products and absence of national brands allows them to have smaller stores, leading to lower rent costs. This minimalistic approach aids in cost reduction.
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Efficient Shelf Restocking: Aldi's store design facilitates minimal stocking and upkeep. Products are often inside boxes or stacked, making it easier for employees to restock shelves efficiently.
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Time and Cost-Saving Packaging: Aldi utilizes pre-packaged produce and milk racks, reducing the time and cost associated with store upkeep. This approach contributes to overall cost efficiency.
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Energy-Efficient Store Design: Aldi has incorporated energy-saving measures in store design, including the use of recycled materials, LED lighting, and energy-efficient refrigeration. This not only saves money but also aligns with environmental sustainability.
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Minimal Store Decoration: Aldi opts for minimalistic decoration, avoiding expensive embellishments. This cost-reductive approach allows the store to pass on additional savings to customers.
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Lean Staffing: Aldi operates with fewer workers compared to other supermarkets. The store's design requires fewer employees, allowing them to maintain a decent paycheck for staff while keeping operational costs lower.
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Customer Bag Policy: Encouraging customers to bring their own bags reduces the need for Aldi to purchase and provide plastic bags, contributing to a greener environment and cost savings.
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Reduced Advertising Expenses: Aldi invests less in TV advertising compared to other major brands, allowing them to allocate more resources to providing affordable groceries.
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Reduced Operating Hours: Aldi's shorter operating hours help save on wages and operational costs compared to grocery stores that operate for longer hours.
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Shopping-Cart Rental System: Aldi's smart shopping-cart rental system, requiring a quarter to unlock a cart, encourages cart return, reducing the need for employees to retrieve carts.
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Consumer-Centric Approach: Aldi's unique approach of not charging suppliers for shelf space and prioritizing customer satisfaction over profits distinguishes them from traditional supermarkets. This philosophy aims to benefit consumers by offering lower prices.
In conclusion, Aldi's success in maintaining rock-bottom prices is a result of a combination of strategic decisions and operational efficiencies that prioritize cost savings without compromising on quality or customer satisfaction.
