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Why is Aldi So Cheap? If you’ve ever wondered how or why Aldi is so cheap, we have some answers!
If you’ve ever stepped foot in an Aldi, you’ll notice right away that it’s not your average grocery store.
Aldi stores are basic, there are no fancy bells and whistles– having shelves that are stocked with Aldi brands and just a handful of national brands is just one of the ways Aldi keeps their prices low.
The stores are smaller and the selection is limited, but what you get are amazingly low prices on grocery and pantry staples.…and well as some incredible Aldi Finds in the Aisle of Shame!
Aldi is very creative when it comes to cutting costs. Here are just a few reasons why Aldi is so cheap.
Aldi Avoids National Brands
90% of the products in Aldi are private label brands. Here’s a list of the most common Aldi brands.
By not carrying brand names, Aldi can keep prices low by skipping the middleman.
Some might think of Aldi brands as generic, but the quality is consistent or better than the most common name brands, especially when it comes to canned and boxed goods, cereal, baking essentials, snacks, chocolate, and wine.
The national brand items that Aldi does carry tend to be overstocks that are purchased and sold at a discount.
Aldi stores are smaller than average supermarkets stocking only about 900 everyday core products.
Keeping things small means lower rent and utility bills, which translates more savings to customers.
Efficient Store Design
Aldi grocery stores are designed to be easy to stock and are energy efficient, too.
There aren’t any fancy displays that need to be put up or taken down, and most items stack neatly in their shipping boxes making it easy for employees to restock.
The boxes that Aldi products are shipped in are the same ones that are stocked on the shelves. Empty boxes can be used by customers to carry their groceries home in for free.
At any given time there are only 2-3 Aldi employees working in each store. Once again, this keeps overhead costs low.
Aldi employees are very efficient and even though there may only be one or two cashiers, they are surprisingly fast at checking customers out because they don’t bag your groceries.
One trick that Aldi has for keeping the checkout lines running smoothly is by putting multiple barcodes on products. If you look at an Aldi cereal box there is a barcode on every side!
Bring Your Own Bag or Pay for One
If you need a bag at Aldi, you’ll have to pay for it– which is another smart way they cut costs for customers.
Of course, you can bring your own reusable bags, hand-carry your items, or use an empty box from the shelves to avoid purchasing paper or plastic bags.
Once you’ve paid for your Aldi food, you bag your own groceries at the bagging counter.
Practically No Advertising
Have you ever seen an Aldi commercial? We haven’t! Aldi spends very little on advertising in the United States.
Another way Aldi keeps operational costs low is by opening later and closing earlier than other grocery chains.
Aldi hours vary by store, but most open at 9 AM and close by 8 or 9 PM.
Quarter for a Shopping Cart
Aldi doesn’t have to hire cart attendants because they have an Aldi shopping cart system where you rent a shopping cart for a quarter.
Once the cart is returned to the cart corral, you get your quarter back. This keeps carts out of the parking lot. Never be without a quarter by getting an Aldi quarter keeper!
Now you know why Aldi is so cheap! Their business model is designed for efficiency and savings are passed on to Aldi shoppers.