Aldi is a discount grocery chain founded in Essen, Germany in 1961. In 1976, the company opened its first US location in Iowa and today it has more than 2,000 stores in 36 states.
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Sales are up double digits over the past year, driven by over one million new customers, according to Scott Patton, Aldi’s vice president of national buying.
AP Photo/Martin Meissner
Source: Reuters
More middle and high income customers, making $50,000 per year or more, are opting to shop at the discount store, Aldi said.A woman carries a shopping basket in an Aldi store in London
Thomson Reuters
Source: Reuters
I visited an Aldi location in Rochester, New York. To pick up a cart at the entrance of the store, I had to put a quarter inside to unlatch it from the rest of the carts.
Mary Meisenzahl/Insider
I got my quarter back when I returned the cart at the end of my shopping trip. Aldi doesn’t have to pay workers to return shopping carts, because customers are incentivized to do it themselves.
Mary Meisenzahl/Insider
As retailers grapple with a shortage of workers, eliminating low pay positions is one way businesses can stay ahead.
Mary Meisenzahl/Insider
I walked inside and was immediately in the produce section.
Mary Meisenzahl/Insider
Most of the fruits and vegetables — including apples, celery, and cucumbers — were pre-wrapped in plastic.
Mary Meisenzahl/Insider
In a recent price comparison, Aldi had lower prices on produce than Walmart did.
Mary Meisenzahl/Insider
Source: Ramsey Solutions
The rest of the store looked similar to the produce aisle.
Mary Meisenzahl/Insider
Products are on shelves right inside their cardboard packaging.
Mary Meisenzahl/Insider
Or, they’re still in pallets used for transportation.
Mary Meisenzahl/Insider
This also saves money on labor, because workers don’t have to spend time unboxing each product and arranging them on shelves.
Mary Meisenzahl/Insider
Aldi stores are a bit smaller than traditional grocery stores at about 12,000 square feet, with just five large aisles.
Mary Meisenzahl/Insider
Another way Aldi keeps costs down is by selling private-label brands.
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The chain says more than 90% of its products are Aldi brands.
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Source: Aldi
Aldi does sell some well-known brands like Coca Cola, but the Aldi private label version is stocked right next to it.
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Aldi takes care to make its products look similar to brand names. These boxes of macaroni and cheese could definitely pass for Kraft without a closer look.
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Though they look the same, Aldi’s mac and cheese it about a third of the price at 34 cents per box compared to 98 cents for the same size of Kraft at Walmart.
Mary Meisenzahl/Insider
Aldi’s flavored seltzers are right next to LaCroix, and the boxes are even decorated in similar styles.
Mary Meisenzahl/Insider
The meat section was well stocked, though smaller than at a Walmart in my area. The prices were among the best deals in the store, though.
Mary Meisenzahl/Insider
Next to the meat there was a large freezer section with frozen meals, snacks, and desserts.
Mary Meisenzahl/Insider
A section in the center of the store seemed to be made up of odds and ends, with storage items, appliances, toys, and other mismatched items.
Mary Meisenzahl/Insider
Aldi also cuts costs at the checkout aisle, where cashiers save time by not bagging groceries.
Mary Meisenzahl/Insider
Customers can take their carts to a shelf against the back wall and bag groceries themselves into reusable bags Aldi sells or free boxes to carry heavy items.
Mary Meisenzahl/Insider
Aldi’s branding is built around its budget strategy — its biggest fans know what they’re getting with low-cost groceries and no-frills aisles.
Mary Meisenzahl/Insider
Some areas of the store seemed a bit disheveled, but customers didn’t seem to mind.
Mary Meisenzahl/Insider
The chain has found a successful niche among budget-conscious shoppers in the US.
Mary Meisenzahl/Insider
As inflation continues to drive up grocery costs, it could also lead more shoppers to Aldi in search of deals.
Mary Meisenzahl/Insider
Source: Insider
In 2020, Aldi was the fastest growing grocery store chain in the US.
Mary Meisenzahl/Insider
Source: Aldi
The chain plans to open 150 US stores in 2022, plus a new distribution center in Alabama.
Mary Meisenzahl/Insider
Source: Insider
These openings would make it the third largest grocery store in the US, behind only Walmart and Kroger.
Mary Meisenzahl/Insider
Source: Insider
As grocery prices have climbed over the last year, I’ve become a regular Aldi customer and it’s now my go-to store for staple ingredients.
Mary Meisenzahl/Insider
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