How Is Aldi So Cheap: Despite being a European brand, Aldi has fast become one of the most popular supermarket chains in the United States. There are 2,000 stores here alone, and each one prioritizes fantastic deals and low costs across the board. If you’ve never been to Aldi before, you may be wondering how it manages to be so cheap. Here are 10 reasons why Aldi’s prices are so low:
Private label products
The biggest way that Aldi brings the lowest possible prices to consumers is the fact that they aim to stock private label products almost exclusively. This means that they buy them cheaper, to sell them for less. As these items are heavily regulated and checked for quality frequently, shoppers can rest assured that they are going to be the best products they can be find on promotons.com.
You may not realize it, but the fact that Aldi only chooses to open smaller stores means that you can buy your groceries for more affordable prices. The reason the square footage matters is that the rent prices are lower for Aldi than for stores within huge buildings, so they pay out less year on year.
Buying overstock and end-of-line branded products
While Aldi will have some branded products in store, these tend to be purchased via overstock, surplus, and end-of-line deals before they get to the shelves. Again, these savings are passed down to the consumer, keeping costs extremely low for all involved.
As the stores are typically so small, Aldi doesn’t waste time employing a host of staff to keep things running. You’ll find no more than three people working at any given time in fact, and while the pay incentives are decent, they are still able to maintain a more cost-effective employee policy.
Smart business contracts
Another way they minimize costs is by ensuring that all business contracts are as simple as they can be. They don’t pay charges for shelf space or any of the other typical expenses that more prominent supermarkets often pay out.
Aldi does as little as possible to advertise themselves, and this means that they don’t spend millions a year on campaigns. They rely more on word of mouth, reputation, and their low-cost ethos instead. With this in mind, remember that the Aldi weekly ad will have all the info you need to keep up to date with what’s on sale.
No frills shopping
Little advertising also extends to in-store, so you won’t find banners, stickers, and promotional materials as you walk around.
Aldi aims to stock just 900 core products store-wide, reducing the customer’s choice, but maximizing their simple and cheap endeavors. You may feel like you won’t have access to everything you need, but the truth is that you’ll have access to only one or two types of what you’re after.
Simple store adjustments
Although Aldi has a simple approach to their stores, they are beginning to implement more eco-friendly practices. Some of these adjustments are working out cheaper long-term too, e.g. more natural light = less lighting = lower electricity bills per store.
The low-cost ethos
The longer Aldi maintains their low-cost ethos, the longer you can expect to enjoy savings.