Aldi isn't your traditional supermarket.
They have cardboard boxes for shelves, shopping carts you can rent for a quarter, and DIY
bagging stations.
But practices like those hold the secret to the grocer's affordability.
We finally know how Aldi keeps their prices so low.
Aldi keeps prices down, in part, by employing a small workforce.
In fact, that small workforce is the reason you'll have to insert change to use an Aldi
shopping cart.
If at any point you want to use a cart to navigate the store, you'll "rent" one: a quarter
unlocks a cart from the corral at the front of the store.
But don't worry about losing your money.
As you're only renting the cart, you'll get your quarter back once you return the cart
to the store.
Considering shoppers do the work of putting the carts away, Aldi saves money by not hiring
cart attendants to gather them from the parking lot.
Aldi has never wavered from the quarter-cart model.
In fact, it was in place when the first American Aldi opened in Iowa in 1976 and, according
to CNN, the company credits the system for helping keep prices so low.
For better or for worse, Aldi is able to keep prices low by making the customer work.
Not only will you be in charge of putting your cart back where you found it, but Aldi
also has customers bag their own groceries.
In doing so, cashiers are able to process more transactions as they don't have to pause
to bag.
Subsequently, the chain doesn't need to hire as many cashiers.
And, of course, that means the chain saves money and some of those savings are passed
on to the consumer.
So, how exactly do you bag your own groceries at Aldi?
You have several options: You can purchase plastic and/or reusable bags at the store,
bring your own bags, or opt for empty cardboard boxes.
While it may not be as glamorous as having your groceries bagged by someone else, it's
part of how Aldi keeps prices low.
Not to mention, it also saves you time.
As Baltimore-based food writer Allison Robicelli told CNN:
"Those lines fly.
You're not waiting for people to bag.
They're not messing around there.
Once you see that kind of efficiency, it makes going to other supermarkets really annoying
and really tedious."
While shopping at Aldi, you might notice a limited number of employees compared to large
supermarkets.
You probably won't see an employee taking calls, either.
As CNN Business reported, most Aldi stores don't even have a public phone number so as
to avoid employees spending time on calls with customers.
In an effort to save both time and money, all employees are also cross-trained in order
to perform every task.
That's important to the store's success because one Aldi store might only have three to five
people in it at any given time, and only between 15 to 20 total store employees on the payroll,
according to CNN.
Having a small and efficient workforce ultimately saves the chain a ton on labor costs and those
savings trickle down to the customers.
Walk into a large grocery store and you'll find products displayed on shelves pretty
much everywhere.
That's not the case at Aldi, which often makes makeshift shelves using the same crates and
cardboard boxes in which products are shipped.
It may not look as pretty, but Aldi and its customers save some coin thanks to this practice.
According to CNN Business, this money-saving tactic also saves employees the time it takes
to unpack boxes and stock shelves since the products are already in place.
This is just one of the many strategies Aldi utilizes to keep prices low and make people
feel better about their purchase.
If you're a wine connoisseur on a budget you probably already know about Aldi's deliciously
cheap wine collection.
This is, after all, the same chain that goes viral any time they announce a new boozy drink,
like its award-winning rosé, which retails for the shockingly low price of $8 a bottle.
In fact, an Aldi representative told Eating Well that about 90 percent of the chain's
wines are priced under $10.
"That's delightful."
It's true that wine doesn't have to cost an arm and a leg to taste good, but how exactly
does Aldi sell high-quality wine for $3, $5 or $10?
It's all in Aldi's business strategy.
Aldi partners with companies that own their vineyards, which means the grocer isn't paying
any overhead to create the product, Eating Well reported.
Also, Aldi typically works with winemakers who use machine pickers as opposed to hand-picking,
which ultimately saves time and cuts down on costs.
It doesn't take long to do grocery shopping at any Aldi store.
According to CNBC Markets, Aldi's stores are "one-fifth the size of a typical supermarket."
This works for many consumers, like Aldi Nerd blogger Diane Youngpeter, who told CNN that
Aldi's simple layout helps her shop more efficiently.
She explained:
"I'm a busy mom.
I don't have time to navigate a huge grocery store with kids begging to get out and go
home.
I can get in and out of an Aldi in no time.
I'm not sifting through 50 different varieties of salsa."
Thanks to its smaller size and minimalist layout, Aldi saves money on real estate and
labor costs , per CNN, and it doesn't have to carry as many products as its competitors.
Typically, an Aldi store carries around 1,400 items versus traditional grocery stores and
superstores, which can carry anywhere between 40,000 to over 100,000 items.
Aldi has found a way to keep its prices low by reducing its energy consumption.
According to Aldi's website, the grocer is always looking for ways to make less of a
carbon footprint while saving money.
How?
Aldi has solar panels installed at stores and warehouses and has stores equipped with
LED lighting and sustainable refrigeration.
The refrigeration systems in Aldi warehouses use ammonia, which is "a natural refrigerant
with a Global Warming Potential of zero," according to Aldi.
Aldi is big on solar energy.
In 2018 alone, according to Aldi's website, its solar panels minimized the grocer's release
of CO2 emissions equivalent to, quote, "15.6 million pounds of coal being burned."
The grocery chain is also big on reducing plastic.
Jason Hart, CEO of Aldi U.S., revealed in a 2019 press release:
"Aldi has never offered single-use plastic shopping bags.
And while we're pleased that we've helped keep billions of plastic grocery bags out
of landfills and oceans, we want to continue to do more."
Aldi has also saved money on shopping bags as they charge customers for bags and encourage
them to bring their own.
Perhaps you've already noticed this, but it can be oddly quiet in Aldi stores as there's
never any music blaring in the background.
The German-based grocer has a very smart, cost-effective reason for not playing music.
Kristin McGrath, shopping guru and editor at Offers.com, told Reader's Digest:
"There's been research that suggests playing relaxing music in stores makes customers relax
and browse more, which is why many stores play music."
But unlike some other grocers, Aldi doesn't want to spend money for a third-party licensed
music service.
Jenna Coleman, founder of Particular Pantry, told Reader's Digest,
"As someone who shops at Aldi every week, I am very familiar with the many things Aldi
does to cut costs.
Not playing music in their stores is just another line item they aren't passing onto
their customers."
So if you're looking for music during your shopping trip, better pop in those earbuds.
You won't see a whole lot of brand name products at Aldi, but that's vital for the grocer to
save you money.
According to a CNBC report, Aldi stocks more than 90 percent of private-label goods, including
brands like Simply Nature and Fit & Active.
"I love this shampoo, and I love this shampoo, but what I really love is myself."
Just because most of Aldi's products aren't brand name doesn't mean they aren't high quality.
Aldi spokesperson Kate Kirkpatrick told Taste of Home.
"We test our products to meet or beat the national brands' quality."
Even if you're into name brands, these private-label products aren't really all that different.
According to CNN Business, Aldi's Honey Nut Crispy Oats are even displayed in boxes that
look very similar to that of General Mills Honey Nut Cheerios.
Scott Patton, Aldi's vice president of corporate buying, told NPR:
"I think right now, the key for us is, consumers are appreciating more and more private label.
They're absolutely recognizing they can get great quality product at a great price."
However, Aldi isn't alone in this.
Other grocers like Costco have also found success with their private-label brands, according
to CNN.
Much of the organic produce you find in your neighborhood Aldi comes from local farmers.
But how do you know a product is locally sourced?
Every item that comes from a local farmer is marked with a "locally grown" logo.
You can even find locally-sourced craft beer, bread, and meat at Aldi stores.
Buying local is both good for the planet and good for your wallet.
Aldi is able to cut costs on transportation, as reported by Taste of Home, which not only
saves money but lessens the impact on the environment.
Every Aldi store receives fresh produce shipments on a daily basis.
Tom Cindel, group director of operations and logistics for Aldi's Moreno Valley area, confirmed
that between five to 10 percent of those products are locally sourced.
This is a win-win for the grocer and its customers.
Fruits and veggies are the most commonly purchased organic products at any grocery store, according
to a survey from Earthbound Farm, and Aldi is no exception.
Though typically organic items do tend to be pricier, a CNBC Make It report found that
Aldi sells USDA organic foods cheaper than its distant cousin Trader Joe's as well as
competitors like Walmart and Whole Foods.
Now more than ever, organic products are in demand, especially with Millennials and Gen
Z shoppers, who reportedly purchase organic food "all the time."
While Aldi's business model focuses on low prices, it doesn't mean quality isn't just
as important as value.
John Karolefski, editor of Grocery Stories, told CNBC that Aldi delivers on both, saying:
"Aldi, happily, has a lot of good quality, good-tasting products at good prices.
It's one of the reasons they've been so successful in the U.S."
One thing every regular Aldi shopper knows is that they won't necessarily find a dozen
options of, say, ketchup at their neighborhood store.
Aldi stores carry a "limited assortment" of products at a "significant volume," according
to its website.
This enables the chain to land good deals with suppliers and provide low prices to its
customers, as reported by NPR.
Scott Patton, vice president of corporate buying at Aldi, told NPR that unlike traditional
supermarkets, Aldi has, quote, "been involved in being a low-price leader since Day 1."
He continued, saying,
"Because of the way we structure our business […] we are comfortable that we will come
out as a leader in the price war."
One of the many ways Aldi leads that "price war" is by limiting how many brands the chain
carries.
So the next time you find yourself doubting the quality of a super low-priced item at
Aldi, know it's the result of the way Aldi does business and not reflective of the quality.
Aldi doesn't generally follow the norm when it comes to operating a grocery store, and
that includes its store hours.
While other chains like Walmart keep the lights on for as long as 24 hours a day, Aldi turns
them off not long after dusk.
Visit Aldi's store locator page and you'll find most locations typically operate between
9 a.m. to 8 p.m., with some even closing as early as 7 p.m.
It might seem like closing early would mean the chain loses out on potential sales, but
closing early actually saves you money.
According to Taste of Home, Aldi's hours of operation allow the grocer to "save on wages
and reduces operational costs," thus providing more savings for its customers.
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