For a long time, Aldi didn’t have the best reputation, because their lower prices were associated with lower quality. However, Aldi has managed to change its image, turning it into one of the most popular grocery stores in America. So what’s behind this rapid rise? Here are 15 secrets about Aldi.
Aldi says over 90 percent of the products on their shelves are their own private label. The benefits are obvious. It ensures Aldi takes control of the supply chain of the groceries they sell, so that they can better control the food quality and prices.
They have won several prizes in the International Wine Challenge and won more than 20 medals in the Grocer Food and Drink Own Label Awards. These have helped a lot in changing its public image.
You may have noticed that the aisles in Aldi have a Costco vibe. Somebody may think that it is because the employees are lazy. But that’s not the case at all. Instead, it is a tactic to save time and money.
Whole Foods’ approach is to create a special shopping experience for customers. However, Aldi chooses another tactic. It has everything in place to make sure customers get things done as fast as possible. To achieve this, they use tricks such as multiple barcodes and perfect length conveyor belts.
Aldi takes the issue of food quality seriously, and their food test process is very strict. Each product must be tested at least 30 times before being put on the shelf. Additionally, the products must be re-tested at least once a year after they come to market.
This may seem a little weird, but it’s another tactic to help Aldi save money. Because in doing so, shoppers are forced to return the carts on their own and no extra staff need to be employed to do it, thereby further reducing its labor costs.
Instead of the money-back guarantee, Aldi chooses a double guarantee as its return policy. It means that not only will they replace things you don’t like but you will also get reimbursed.
By hiring as few staff as possible, Aldi minimizes its labor costs. That’s one of the reasons why they are able to offer some of the lowest prices on the market.
Aldi keeps approximately 1,400 items in stock at any one time. That seems like a lot, but compared to its competitors like Kroger and Wegmans, who keep around 30,000 items in stock on average, it is not.
The time-saving solution started with Dallas, Atlanta, and Los Angeles. Now more and more customers can place orders online and have their groceries delivered to their doors. You can enter your zip code and check it on the Instacart to see if delivery is available in your city.
As you may realize, the grocery industry is all about efficiency, so Aldi does not open 24/7. Instead, they only open during peak hours (usually 9 am to 8 pm), so that they make sure they are not paying employees while making no money.
Kohl’s has been sparing no effort to reverse its sagging in-store sales. In 2018, it announced its partnership with Aldi and started to sublet space in their stores. It’s a great way to save customers’ time and money.
Aldi split into two parts in the 1960s because of a dispute about whether they should sell cigarettes or not. Now there is Aldi North and Aldi South. They have different brand banners, and they are financially and legally independent.
You have learned about the two Aldis, both of who have entered the US market. Aldi in the US is actually the Aldi South. So who’s Aldi North? You probably already know – It’s Trader Joe’s.
It is all about verzicht, which means “giving up” and “doing without” in English. They keep things as simple as possible, so that they do not spend extra effort on daily operations. By doing so, it not only cuts down its maintenance costs, but also makes it possible to focus on making profits.