Grocery shopping for a household can be a daunting prospect, especially if you have a lot of mouths to feed every day. Getting the best deal on groceries is an absolute must for many families.
Grocery chain Aldi has become the go-to for many budget-friendly shoppers, and it’s not difficult to see why.
Let’s explore 17 reasons why Aldi is so cheap and able to pass on so many savings to their customers – some of these are going to surprise you!
1. The Store’s History
Aldi founders Karl and Theo Albrecht inherited a grocery store space from their mother in 1945. Germany was not a prosperous place to be post-World War II, so the brothers adopted a model of just-the-basics sold at the lowest possible price points.
From the very beginning, the mission of Aldi stores has been to provide customers with the essentials at prices anyone can afford, and in this, they have never wavered, while succeeding admirably.
It’s even built right into the store name: “Al” comes from Albrecht and “Di” comes from the word “discount.”
2. No Fancy Displays
Upon entering your typical supermarket, you might see an enormous display made of soda cubes.
While aesthetic to look at, such a thing would never occur at Aldi, because for them, time is money. Stores are not going to pay someone to be building a display; they’re going to pay them to be providing actual customer service in the form of check-out or stocking.
Aldi even takes it to the next level. Their stock goes up on shelves right in the packaging they arrived in from the truck, with the newest boxes going in the back or the freshest produce placed beneath the older.
3. Private Label Brands
When wandering the (limited) aisles of Aldi, you might notice a distinct lack of brand names. Everything looks familiar, but upon closer inspection, there are no Cheerios, no Land O’ Lakes, and no Hillshire Farms.
That’s because one of the ways Aldi keeps prices so low is by selling almost entirely their own private-label products. Instead of name brands, you’ll see Fit N’ Active, Nature’s Nectar, Never Any!, and Bremer.
While these off-brand names might mean less money from your wallet, they in no way mean less quality.
In fact, items like their Happy Farms milk come from the exact same dairy and processing plant as some of the big-label milk you would see in your Kroger or Wegmans.
4. Smaller Stores
It’s not your imagination that Aldi stores feel smaller and less warehouse-y. They are an estimated six times smaller than your typical Walmart, and every less square foot of space is less room that has to be cleaned, heated, or cooled.
It’s also less space to be structurally damaged or require fixing, maintenance, and monitoring for damage.
5. Less Warehouse Space
Along with their smaller stores comes less storage in the back. While this might not seem like a boon, it benefits the customer in two ways.
Firstly, it contributes to the overall smaller stores (and therefore lower prices) and it ensures the freshest product is always being moved out onto the sales floor. It’s really a twofer!
6. Limited Stock
Inherent with less storage and shelf space is fewer items. Aldi makes excellent use of the space they do have, though.
Pretty much any fridge or pantry staple you require will be there for a great price, but you’re not going to find 20 different varieties of salad mixes or 15 cold brew brands.
You also won’t find a steady stock of things like office supplies, birthday cards, clothing or furniture. The stores may get them from time to time as ALDI Finds (special weekly items sold in limited quantities), but you have no guarantee they will be there.
Not constantly stocking superstore-esque products certainly allows Aldi to function with their smaller spaces.
7. Cart Deposits
The Aldi quarter is so ubiquitous that stores sell cute “quarter keeper” keychains, but this method of “cart rental” serves dual purposes, both of which enable lower prices on the shelves.
First, it helps ensure customers return their own carts to the corrals at the front of the store.
This, in turn, means that Aldi doesn’t have to pay extra employees to monitor the carts in the parking lot, constantly corralling them and bringing them back.
8. Bring Your Own Bag Policy
BYOB means Bring Your Own Bag at Aldi. It’s not that Aldi doesn’t have bags at the registers; they do, but you have to pay for them, and it’s a way for the stores to bring in a little extra coinage while capitalizing on their express check-out model.
By setting up their check-out model so that cashiers aren’t the default baggers, they increase the overall efficiency of the shopping experience.
Faster check-out equals more potential people served, and this is especially important considering the next item on this list.
9. Limited hours
Walking into a Walmart at 1 a.m. is its own special thrill, but you won’t get that experience at Aldi. Stores run on much more limited hours than many of their grocery store peers. (This is why maximizing customers served during the hours they are open is so important!)
But these limited hours mean lower utilities, less wear-and-tear on stores, and fewer employees needed (and need to be paid).
10. Limited Staff
Why are there so few employees in Aldi stores? By eliminating many “frills” services and streamlining all their store processes, a typical Aldi building just does not need that many people working at one time.
Fewer employees mean fewer salaries or weekly wages.
11. Well-Paid Employees
But don’t confuse fewer wages with lesser wages. Aldi pays well above minimum wage in the United States, even to start, and their benefits package is considered generous.
While this might seem counterintuitive to the consumer getting lower prices, it means that high-performing employees have the incentive to stick around, and the longer they stay, the better and more efficient they get at their jobs, helping operational costs stay stable.
12. Well-Trained Employees
Speaking of people good at their jobs, while Aldi stores have a reputation for sometimes back-breaking work, no one can accuse their employees of not being well-trained.
Whereas in a big box chain, you might have a team of five manning the carts, while a dedicated team of three works in refrigeration, Aldi employees are cross-trained in every area.
This is another practice that helps stores limit the number of employees.
13. Barcodes everywhere
Because Aldi’s stock is 90 percent private label, they can control the packaging, and they have certainly done so. Check out a 12-pack of their store-brand soda cans and you will find no fewer than seven barcodes.
All these barcodes speed up the check-out process (cashiers don’t have to waste time finding the one hidden barcode) and contribute to overall efficiency.
14. Sitting cashiers
And yet another contributing factor to the stores’ overall efficiency is their sitting cashiers.
Not only does this keep them from getting tired (read: slower) faster, Aldi claims it helps them scan faster, too.
15. No Superfluous Services
Also pared down in Aldi stores are the types of services they offer. For example, you cannot buy stamps in Aldi locations, or cash checks (they don’t even take checks), or print money orders.
In fact, you can’t even call individual stores for the most part. Many choose to leave their numbers unlisted, so that employees aren’t tied up, answering the phone all day. So no call to reserve items or to complain.
16. Limited advertising
There is a list of items as high as Mt. Everest that would happen before Aldi spent the money for a Super Bowl ad.
In fact, they barely spend anything at all on advertising. In 2016 they spent 42 million dollars on ads; in comparison, Walmart spent 2.75 billion in 2019.
Instead of big media buys, Aldi has social media presence on Instagram, Facebook, and Twitter, and their word-of-mouth advertising is extensive, with entire articles, blogs, and posts devoted to the chain.
17. No store music
Some grocery stores have all the good bops playing, but not Aldi. The spartan shopping experience is capped off by a lack of music in the store.
If you would like to learn how other stores keep their prices so low, don’t forget to see our other posts on:
- How Walmart is so cheap
- How IKEA is so cheap
- How Costco is so cheap
Conclusion
Aldi’s presence in the United States is growing every year, and it’s no wonder customers are willing to be persuaded by the grocery store’s business model. With customers’ savings at the heart of everything they do, Aldi ensures exceptional value with their cost-cutting practices.
FAQs
Why is Aldi food so cheap? ›
Like the cheap meat at Aldi, the produce at Aldi is also locally sourced, which keeps costs down. As gas prices go up, those higher prices get thrown right back into the products we purchase. By keeping the distance that a product needs to travel low, that means less gas and less overhead cost.
Is Aldi supposed to be cheap? ›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.
Why do prices vary from store to store? ALDI considers many factors when setting product prices, including production and operating costs, market conditions, local regulations, consumer demand and the competitive landscape.
How much money do you save going to Aldi? ›Only you can determine if saving 20-40% off your grocery bill is worth it to you. ALDI can save you money, but you will need to be flexible about products sometimes. You may have to go to another store to finish your shopping for some weeks or change your meal plan.
What are Aldi's weaknesses? ›Weaknesses of Aldi
Aldi faces positioning problems. For instance, many customers see it as a store for cheap and low-quality products. Aldi's emphasis on low-cost private label items could turn off some customers who prefer branded items.
Aldi produce is award-winning. In fact, we've been voted FPC Fresh Produce Retailer for 5 years. We work with the best suppliers to stock every store with quality fruit and veg.
Are Aldi products quality? ›Indeed, 90% of Aldi's products are exclusive store brands, and many mimic the packaging and product of national brands. We found several great items at Aldi that deserve a spot on your grocery list based on quality or value — or both. That's good news as all of us are looking to cut corners on rampaging grocery bills.
Are eggs cheaper at Aldi? ›Discount grocer Aldi has consistently had eggs priced at under $2 per dozen in certain locations. Explore: Is Breakfast Now the Most Expensive Meal of the Day? Lidl also has cheap eggs, often with prices as low as $3 per dozen.
Is Aldi milk good? ›Is Aldi Milk Good Quality? Yes, Aldi milk is of good quality, even though it is cheaper than other kinds of milk. Research shows it is precisely the same as brand-name milk, just different labels and packaging. It is not of lesser quality or B-grade milk.
Are groceries cheaper at Walmart or Aldi? ›Getting straight to the punch: Yes, ALDI does continue to beat Walmart on price in 2022. But, the pricing gap between the two stores has narrowed significantly in most categories, and Walmart has even moved into the lead in a couple. ALDI is still cheaper than Walmart in 2022 — but, the gap has narrowed!
How can Aldi afford to have lower prices than their competitors? ›
Every item a supermarket stocks costs them money in managing supplier relationships, accounting and so on. The small selection means small stores, which means lower rent. Similarly, if you've ever queued to buy just one thing at Aldi, you'll know it doesn't bother with an 'eight items or less lane', saving on staff.
What day does Aldi reduce prices? ›Shop on Wednesday for the best deals.
To score the best deals on Aldi's products, visit the store mid-week. On Wednesdays, new products are released and produce goes on sale.
Do they offer annual pay raises? Yes.
Is it worth working for Aldi? ›The employee experience below at ALDI Inc., compared to a typical company. 79% of employees at ALDI Inc. say it is a great place to work compared to 57% of employees at a typical U.S.-based company.
What day does Aldi mark down meat? ›Buy meat on Wednesdays
Here's another great reason to get your shopping done in the middle of the week. Aldi's fresh meat deals start on Wednesdays, so you could get a tray of chicken thighs or a whole rack of lamb for a discounted price.
Aldi is well known as a fast paced workplace. As a deputy manager it is expected that you have numerous responsibilities throughout the store and take on lots of jobs simultaneously.
Who is Aldi's competitor? ›Two German competitors — Aldi and Lidl — are a major driving force. They're known for very low prices, and they're planning scores of new U.S. stores.
Why is working at Aldi good? ›"We offer the highest hourly rates of pay in the supermarket and actively welcome feedback from employees. "For example, in our most recent independently-conducted employee survey, 85 per cent of our employees rated Aldi as a great place to work, which is significantly higher than the sector average.”
Why are Aldi stores so cold? ›Aldi says: 'The temperature of our stores is managed on a local basis by the store managers. 'This helps to provide the right environment to ensure the quality of our ambient and fresh produce, as well as creating a comfortable shopping experience for all our customers. ' 'It's freezing in here!
Does Aldi sell healthy food? ›That's why ALDI has everything you need to stay on track, from heart healthy breakfast options to fresh, organic dinner items. We offer a wide variety of fresh produce, gluten free products, high-protein snacks and low carb options to fit every lifestyle at a great price.
Is Aldi all organic? ›
Our products are either USDA Certified Organic or are being independently vetted for Non-GMO ingredients and can be spotted by their organic seal.
Is ALDI food unhealthy? ›Finally, ALDI is not a Whole Foods or the health food section of your grocery store. The majority of the items there are not organic or natural, or even all healthy, as is the case in a typical grocery store.
Why does ALDI not play music? ›The main reason is that Aldi doesn't want to pay to play music all day long. If the company had to shell out money to have music playing throughout the store, then that would mean they'd have to raise their prices to offset the cost.
Where does ALDI's food come from? ›Aldi sources its products from all over the world.
You will regularly find food and Aldi Finds sourced or made in the United States, United Kingdom, Germany, Thailand, China and a handful of other countries across the globe. If you want to know where something is made from Aldi simply look on the packaging.
Ideally the best egg is organic, pastured (or free-range), USDA A or AA, stamped with the Certified Humane or Animal Welfare Approved seal. If you have to pay a dollar or two more than usual, you'll know you spent money on the things that matter.
How long do eggs last? ›Fresh eggs can be kept refrigerated for up to 6 weeks but always check the use by date displayed on the carton. It is best to put eggs in the fridge as soon as you get them home.
Who owns ALDI? ›In 1961, the Albrecht Family founded the world's first discount grocery store in Germany.
What is the best milk for old? ›Milk is an excellent vitamin D and calcium source to keep up muscle strength, maintain healthy bones, and prevent osteoporosis. Still, low or non-fat milk is the best choice for the elderly.
What brand milk is best to drink? ›- Amul Milk. The leading milk brand in India, Amul Milk, offers many products. ...
- Mother Dairy. Mother Dairy is one of the best cow milk brands in India. ...
- Nestle. ...
- Avin. ...
- Dudhsagar Dairy. ...
- Schreiber Dynamix Dairies. ...
- Kwality.
Low- or non-fat dairy — Skim or 1% milk contains all the protein, vitamins and minerals that whole milk contains, but it has much less saturated fat. This type of milk is typically more heart-healthy than full-fat milk.
Is fruit cheaper at Aldi? ›
You'll get a better deal on fruits like apples and oranges if you buy in bulk, but occasionally you'll find a good price at ALDI.
Is Aldi better than Kroger? ›If Aldi is not the lowest price, they really aren't in the running at all for being the cheapest. Also, since Aldi does not carry everything, there were several items on the list that could not be compared at Aldi. Kroger is definitely the most expensive if you shop without sales!
Is Aldi's or Target cheaper? ›Often Aldi is cheaper than Target at least by a little bit and their selection of fresh produce is often better than at Target as well. As of February 2023, 16 of the items are $0.10 or more cheaper at Aldi than at Target. There are some items that are the same price, and 8 items that are cheaper at Target than Aldi.
Who is Aldi target customer? ›ALDI's pricing strategy of maintaining the lowest possible prices and no-frills discounts encourages men and women in low and mid-level income groups and economical shoppers around the world to become regular customers.
What is Aldi's unique selling point? ›The company focuses on a no-frills shopping experience and limits its inventory to a lean selection of private-label items. 90% of the products sold are from its own brand line. Moreover, the company sources most of its products from the local vendors.
What makes Aldi special? ›What makes ALDI different? At our core, we are different by design. We are private-label trailblazers, and our company is built on these basic principles: simplicity matters, we sell the best food at low prices, and everything we do is purposefully designed to save people money.
How long is break at Aldi? ›Any other extra breaks. Most places it's two 15 minute breaks and one hour lunch. ALDI | Indeed.com.
What day is best to buy at Aldi? ›When it comes to everyday shopping, several unnamed Aldi employees told Cooking Light in 2019 that Wednesday is the best day of the week to do your grocery shopping. According to employees, this is the day Aldi restocks its shelves with limited-edition Aldi Finds.
What happens to unsold Aldi specials? ›According to one user, leftovers from the sales get sent to a particular store, where they remain until they eventually sell out. “Leftovers get shipped to other stores to centralise stock sometimes.
Does Aldi give bonuses? ›$1,500 Full-Time Store Associate Referral Bonus - Receive up to a $1,500 referral bonus when a candidate you refer is hired and works for ALDI as a Full-Time Store Associate, less applicable taxes and required deductions. The referral bonus will be disbursed to active employees in three installments of $500.
How often do you get a raise at Aldi's? ›
20 answers
Every December they have wage announcements. Everyone gets the same raise.
Right AwayAfter you join the ALDI team, you're immediately eligible for the 401(k).
How many sick days do you get at Aldi? ›3 paid sick days per year.
Is it better to work at Aldi or Walmart? ›...
Overall Rating.
| Overall Rating | 3.2 | 3.4 |
|---|---|---|
| Work/life balance | 2.8 | 3.3 |
| Compensation and benefits | 3.7 | 3.3 |
| Job security and advancement | 3.1 | 3.2 |
| Management | 2.9 | 3.0 |
Typical shifts are 6-8 hours on days you're available to work. Own your schedule as one of our hardworking, dedicated people who work in ambient and temperature controlled areas.
Is Aldi meat USDA approved? ›Yes. Aldi meat is USDA certified, and the company carefully inspects meat from suppliers before delivering it to their stores. Aldi lives by the slogan, quality does not have to come at a high price and delivers the best quality meat to customers.
Is Aldi meat nice? ›Aldi buys comparable products without choosing the one you've heard of before, which leads to some much lower prices. The meat that they sell is the same quality that you would find in other grocery stores, just without that name-brand label.
Can you return meat to Aldi? ›Please bring the package, any unused portion of the product and your receipt of purchase to your local ALDI, and we will issue a refund and replacement. Our Twice as Nice Guarantee does not apply to non-food ALDI Find items, alcohol, or national brands.
Are Aldi products high quality? ›Indeed, 90% of Aldi's products are exclusive store brands, and many mimic the packaging and product of national brands. We found several great items at Aldi that deserve a spot on your grocery list based on quality or value — or both. That's good news as all of us are looking to cut corners on rampaging grocery bills.
Where does Aldi's food come from? ›Aldi sources its products from all over the world.
You will regularly find food and Aldi Finds sourced or made in the United States, United Kingdom, Germany, Thailand, China and a handful of other countries across the globe. If you want to know where something is made from Aldi simply look on the packaging.
Why do people choose Aldi? ›
Shopping at Aldi is a no-frills experience, but that cuts down on costs, which is ultimately to the customers' benefit. You might not even see shelves in some aisles. Instead, items are displayed in the boxes they were shipped in. When an item runs out, a store worker simply brings out a new box.
What is special about Aldi supermarket? ›Here at Aldi, you won't find any price gimmicks. Instead, we focus on Everyday Low Prices, meaning our customers can rest assured they're getting top quality fresh food at affordable prices.
Is Aldi food unhealthy? ›Finally, ALDI is not a Whole Foods or the health food section of your grocery store. The majority of the items there are not organic or natural, or even all healthy, as is the case in a typical grocery store.
Is Aldi a good place to work? ›Aldi is well known as a fast paced workplace. As a deputy manager it is expected that you have numerous responsibilities throughout the store and take on lots of jobs simultaneously. If you are comfortable working under pressure and are good at managing your time efficiently it is a great job.
Who makes Aldi cheese? ›Hidden away in the Cheshire countryside, Joseph Heler's dairy farm has been making quality cheeses since 1957. This award-winning artisan supplier has become a family affair - managed by son, Mike and grandson, George. And for the past 5 years it has produced all of Aldi's Emporium Red Leicester Cheese.
What do Aldi stand for? ›In 1961 the brothers changed the name to Aldi, which is short for Albrecht Discount, and the business continued to grow.
Why does Aldi charge for carts? ›This 25 cent deposit ultimately saves our customers money because we don't have to hire extra staff to collect grocery carts. To unlock a cart, customers have to insert a quarter, and this deposit ensures shoppers return their cart to the corral to get their quarter back.
What do Aldi customers want? ›Aldi's business model is formulated with a very specific customer in mind: someone who evaluates groceries from a utilitarian perspective. Aldi's customer wants low prices in a quick shopping environment and is willing to make sacrifices on choice and service.
Who owns Aldi? ›In 1961, the Albrecht Family founded the world's first discount grocery store in Germany.
What are 5 facts about Aldi? ›- At Aldi, you can't just grab a cart or a bag. ...
- Aldi is a cousin of Trader Joe's. ...
- Aldi stocks some of the best Girl Scout cookie knockoffs you'll ever taste. ...
- Aldi's gluten-free options are surprisingly good. ...
- There are more healthy products at Aldi than you might expect.
Why does Aldi not play music? ›
The main reason is that Aldi doesn't want to pay to play music all day long. If the company had to shell out money to have music playing throughout the store, then that would mean they'd have to raise their prices to offset the cost.
Is Aldi good for food shopping? ›There's a whole harvest of fresh food
Cheese, milk, cream and bread are just some of the fresh produce you can find at a competitive price. Just as you'd expect at any supermarket, fresh fruit and veg are constantly restocked and on display pretty much as you walk into the store.