Competing In The US Market: How Does Aldi Do It

 

Aldi, a low-cost, high quality European brand has made items like sustainable bedding affordable for everyone. The company is now in the US market.

The products

Aldi just isn’t like other supermarkets and grocery stores. One of the main differences that shoppers will notice is the lack of branded products on offer. While there will be some (around 90% is actually private label), the absence of trusted names may give you pause for thought, but the great news is that this is one of the biggest ways that Aldi saves consumers money.

Buying private-label products cuts out the middle man, making prices at the corporate level cheaper than average. These savings can then be passed on at the retail level, allowing shoppers access to high-quality products that won’t break the bank. Branded products are often overstock too, meaning that you’ll find either discontinued items or they are bought as surplus, again saving the company and in turn you, for a more budget-friendly experience.

Another way to keep costs low that relates to products is that a smaller selection means smaller stores. This helps consumers to get their shopping done quickly and reduces typical corporate gimmicks like impulse buying. With only 900 core products and any additional ones being end-of-line, overstock, or limited offer; you will find that all Aldi stores are small and simplistic, to keep costs as low as possible.

The stores

With smaller stores still in mind, this saves on things like rent for square footage, warehouses, and even parking lots. It also means that fewer staff members need to be employed to keep everything functional. With only 2-3 members of staff often needed at any given time, customers tend to shop with less pressure. Aldi is a great company to work for, as they are able to offer a decent wage set up, as they aren’t employing thousands of staff across the US.

Having touched upon the shopping experience, these stores are designed to minimize distractions and for less upkeep, so customers will find many products in boxes, easy to access (most produce is pre-packaged), and things like milk on racks. This allows you to do your shopping and get to the checkout in record time.

There is an element of environmental consciousness too, Aldi doesn’t supply bags for free and encourages customers to bring their own or reuse them where possible. Although these stores have a very straightforward, basic approach, they are beginning to consider a more modern store design to maximize natural light and reduce carbon emissions. So far, stores that have had an upgrade have enjoyed LED lighting, open ceilings, recycled materials, and energy-saving refrigeration.

The ethics

One of the great things about Aldi is that they’re focused on the savings that they can pass on and quality products that people from all walks of life can afford – and this makes them stand out in the American market. Where traditional grocery stores may prioritize a more laid-back, family-style way of shopping, supermarkets implement tactics to attract shoppers while remaining ethical. Well, Aldi breaks all of the usual rules. With no charges for shelf space and simple terms for all of their contracts, they have kept their focus solely on bringing affordable goods to the consumer as a bottom line.

aldi woman shopping

Aldi’s future as a US supermarket chain

The great news is that aside from incredibly low prices as standard, Aldi also runs a list of promotions every week to ensure that shoppers get the absolute best from their grocery budget. There is a weekly circular that features a whole host of discounts and deals. As these vary from week to week, if you are looking for something in specific, you’ll likely be able to find it for less within a few weeks. You’ll be able to research these deals online too, so you never have to miss out.

As you can see, Aldi has a lot of aspects that have made it a popular choice for shoppers so far, so what’s in store for the future? Well, as upgrades are being made and ethics remain firmly on the side of the consumer, it can only continue to grow. With over 11,000 stores worldwide and more than 2,000 in the United States alone, it is on target to become the third-largest supermarket in America. With the competition being so well established, that’s no mean feat.

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