Karl and Theo Albrecht in Essen, Germany, took over their mother's convenience store in July 1946. Due to the post-World War II economic conditions, consumers became extremely price-sensitive and were able to discern even the smallest price differences between stores. Karl and Theo came up with inventive ways to cut costs in order to stand out from the competition, such as limiting the number of employees, getting rid of unsold inventory, and skipping advertising. Their cost-cutting strategy paid off, nowadays we this concept is best known as: ALDI
Karl and Theo became billionaires after Aldi quickly became Germany's most successful grocery store.
"How popular is Aldi in Germany? In total, 61% of German grocery store customers say they like Aldi. However, in actuality, among the 98% of German respondents who know Aldi, 62% of people like the brand."
Aldi has become the fastest growing grocery store in the United States, it is expected to be the country's third largest grocery store (after Walmart/ Sam´s Club and Kroger). Aldi currently has more stores than Whole Foods, Costco, and Trader Joe's combined and is still opening new stores.
Let's look at two of these well-liked retailers, Aldi and Trader Joe's, which appear to be at the top of many shoppers' lists. These are two stores that customers can gush about for hours, from Trader Joe's rising TikTok fame for its unique finds under $5 to Aldi's affordability and no-frills simplicity. They both frequently appear on lists of the best grocery stores, including one published by USA Today in its article on the best supermarkets of 2021. Despite the fact that many people enjoy shopping at both of these establishments, the majority are unaware of the surprising connection between them.
ALDI has 2k+ stores in the US across 36 states.
This brought many changes to the American grocery market, but the most important question remains: How does it benefit the American consumer?
ALDI is known for its low prices, private label brands, and limited product selection.
ALDI is a unique grocery store that uses clever strategies to reduce labor costs and improve efficiency, this is resulting in savings for consumers. For example, the discounter is requiring shoppers to insert a quarter to use a shopping cart, charging a fee for bags, and having shoppers bag their own groceries at checkout- this is standard in Germany BTW.
The goods and premium, lost-cost private label products bring even bigger savings. Only about 1,400 items are available at Aldi, as opposed to about 40,000 items at a conventional grocery store. Consumers pay significantly less overall (up to 50%, depending on the item), than in other conventional grocery stores while still receiving the same high-quality goods (and in some cases, better quality). By the end , shopping at Aldi is more beneficial (in so many ways) than doing so elsewhere.
Walmart US CEO Greg Foran once has praised Aldi as "clever", "good", and "fierce".
On the other hand, Trader Joe's is known for its unique, affordable products that can't be found anywhere else, as well as its excellent customer service. While both ALDI and Trader Joe's cater to budget-conscious consumers, they offer different shopping experiences.
“We’ve seen a pretty definitive shift in consumers starting to shop at the discounters like Aldi and Trader Joe’s and Lidl,” said RJ Hottovy, head of analytical research at Placer.ai
The German discount store chain, has seen an increase in popularity in the US due to rising inflation and its ability to offer affordable prices to middle-income consumers, which is hard to compete. ALDI's expansion in the US has been supported by its focus on offering private-label products and reducing costs through efficient store layouts and also limited store sizes. Despite challenges like the increasing labor costs and supply chain disruptions, Aldi plans to continue its growth in the US, by opening new stores and expanding its product range- but still keeping the great quality.
Why Americans love ALID
Customers benefit from the savings:
Savings begin before customers even enter the store. One way ALDI helps customers save money is by requiring a quarter deposit to unlock a shopping cart. ALDI has never provided single-use plastic bags and additionally asks customers to bring their own reusable bags.
- Nearly every ALDI location offers grocery delivery and curbside pickup for online purchases. Shop.aldi.us is where you can place an order.
- ALDI stores typically have 12,000 square feet of retail space, which makes shopping more convenient.
- Work with ALDI: As one of the retailers with the quickest rate of expansion in the United States, ALDI is always adding new positions in the neighborhood. Visit careers.aldi.us to find out more about working for ALDI and to look for open positions.
ALDI makes every opening a special
For example: new location is opening on Thursday, March 2 at 8:30 a.m. in Fremont NEWAYGO COUNTY, MI.
- A gift bag containing a selection of ALDI Fan Favorites products and a gift card from the ALDI Golden Ticket gift card giveaway program will be given to the first 100 customers who make purchases at the new store.
- From March 2 to 5, shoppers can enter sweepstakes for a chance to win a $500 ALDI gift card.
The store will be open daily from 9 a.m. to 8 p.m.
“The best place you can buy organics, and they’re continuing to roll out even more, is probably Aldi,” agrees Phil Lempert, food industry analyst and editor of SupermarketGuru.
Despite the fact that Trader Joe's and Aldi are related, the two businesses operate independently of one another. Trader Joe's is based in Monrovia, California, and operates over 500 stores across the country. With over 11,000 stores worldwide, Aldi operates in many countries around the world, including Europe, Australia, and the United States.
It is worthwhile to check out ALDI and Trader Joe's whether you are a frugal shopper or just looking for distinctive, high-quality products. Many products are shipped directly from Europe where the food standards are way higher, then US. That means: no corn sirup, less added sugar and way less chemistry.
Both ALDI and Trader Joe's have strict quality standards for the products they sell, and they both use third-party testing to ensure that their products meet those standards.
It's a strategy similar to that of Trader Joe's, which also offers a lot of good prices on organic products. It's worth noting that Aldi U.S. and Trader Joe's are independent businesses with separate but once-related corporate parents.
“Our stores are designed to make grocery shopping smarter, faster and easier, and we’ve been voted the price leader for six years running,” said Ryan Fritsch, Webberville regional vice president for ALDI, in a news release."
FYI:
Aldi Nord took over the grocery stores in northern Germany and a large portion of Europe, while Aldi Süd took over the stores in southern Germany and several other European countries. Trader Joe's has been owned by Aldi Nord in the United States since the late 1970s, while ALDI stores first opened in the United States in the mid-1970s under the ownership of Aldi Süd. The chains have always been completely independent of one another, with no joint ownership.
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