Aldi Shakes Up Grocery Industry
Low prices, no frills and private-label brands help retailer battle Amazon, Kroger and Walmart.
May 20, 2019 | 2 min read
NEW YORK—Aldi is growing aggressively in the United States—and becoming one of the largest competitors in the grocery scene. It’s a bit unexpected when you consider Walmart, Amazon, Kroger and Instacart. But it the discount grocer’s simplicity and efficiency that are working wonders in the industry.
A CNN article pointed out that although shoppers need to pay a quarter to rent a shopping cart and must bring their own bags or pay if they want a paper one, Aldi has developed a cult-like following. “The allure is all in the rock-bottom prices, which are so cheap that Aldi often beats Walmart at its own low-price game,” the article said.
“I am willing to do the extra work because the prices are amazing,” said Diane Youngpeter, who runs a fan blog about the grocer called the Aldi Nerd and an Aldi Facebook group with 50,000 members. “There’s a lot of Aldi nerds out there,” she said. “I didn’t realize that there were so many of us.”
With more than 1,800 stores in 35 states, the no-frills’ grocer on the way to becoming the third-largest supermarket chain behind Walmart and Kroger. It’s forcing other grocery companies to rethink store layout, offerings and prices.
CNN put it well: “There’s no secret to how Aldi keeps its prices so low: The company strips down the shopping experience in an unapologetically and brutally efficient way.” An Aldi store only stocks around 1,400 items, compared with the average 40,000 at a traditional grocery store, but the limited selection and layout is helping shoppers save time.
