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13 Reasons Why Aldi’s Groceries Are So Cheap
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.
Aldi avoids brand names
At most supermarkets, you’ll find tons of big-brand items, but at Aldi, a whopping 90 percent 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 buy these 5 items next time you’re at Aldi!
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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 these products at a reduced price, and in turn sell it at a lower cost to their customers.
Shutterstock / Ken Wolter
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, smaller rent prices!
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.
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.
They use energy-efficient lighting
In a press release on Feb. 2017, Aldi announced its initiative to save money by remodeling some of the stores. A modern design (and even using open ceilings) will bring natural lighting into the store, making it environmentally friendly, too. They’ll even use recycled materials, energy-saving refrigeration and LED lighting.
They have minimal decoration
Unlike Trader Joe’s custom murals and fancy packaging, Aldi has embraced a minimalist decorating scheme. By skipping expensive embellishments, Aldi is able to pass on even more savings on to their customers.
Visiting Trader Joe’s doesn’t have to break the bank. Check out these cheap items you can pick up at Trader Joe’s.
They have fewer workers
Aldi will often schedule only two or three staff 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 few employees a decent paycheck.
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.
They don’t have a ton of TV ads
Have you ever seen a Walmart or Target ad on TV? Yes. Aldi? Probably not as many. Although Aldi does have a small television campaign, advertisements on television aren’t seen as frequently as other popular name brands. This means Aldi has extra money to save for what they do best—bring you cheap prices.
They have reduced hours
While many grocery stores are open for 12, 18 or 24 hours a day, most Aldis locations are only open for 11 hours or less. This allows the chain to save on wages and reduces operational costs.
Shutterstock / Jeff Bukowski
They have a smart shopping-cart rental system
No need to have someone working the shopping carts all the time with a system like Aldi’s! In order to use a cart, you must put a coin in the cart to unlock it. This gives people an incentive to return the cart and get their money back. Didn’t know about that? Well, here are five things to know before shopping at Aldi next time.
Shutterstock / Joe Seer
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.