How Aldi Can Sell Cheaper than Walmart
With increasing modernization, running a supermarket has been a more sweeping hurdle in America. The matter of surprise is how Aldi can sell cheaper than Walmart, one of the largest selling marts in America. Aldi is a German grocery chain, which offers groceries at the lowest price. It is growing in the US, and shopping at an Aldi is not the same experience as at the other grocery stores. It has few restrictions, such as renting a shopping cart, chargeable plastic, and paper bags.
Yet with all these confinements, Aldi has a big fan following. Aldi is always ahead of Walmart because of its cheaper product prices. In 2019, Aldi had more than 1,800 stores in 23 states. It has the aim to be the top 3 largest supermarkets in America. Foran, US CEO of Walmart, said that he has been competing with Aldi for the last 20 plus years. They are fierce and good. Seeing Aldi’s growth, Walmart lowered the prices of almost 40 products to gain customer attraction and called this “Aldi’s way.”
Strategies Which Allow Aldi to Sell at Cheaper Rates
Few strategies, which allow Aldi to sell at cheaper rates, are:
- They are enforcing the customers to bring the cart back on the cost of a deposited $.25.
- The less they stock in the store, the less time is taken by the customer to look for their necessary items.
- More than 90% of brands belong to Aldi itself.
- Barcodes on the products printed in a large size than usual for easy checkout.
- The customer bags their own groceries.
- Employees are trained to be versatile. Hence, Aldi’s have 4-5 employees at a store, which saves the labor cost of 15-20 employees.
Aldi’s price is 50% cheaper than the traditional supermarkets and 15% lower than Walmart. Aldi took a decade to build 500 stores, but eventually, it is growing faster and started 130 stores in a single year. Of course, Aldi is not only one participant of a discounted store, and there are others including Ross, Burlington, TJMaxx, etc. Low or middle-income is not the only focus of Aldi, but they also target high-income shoppers by offering organic, fresh, and imported items. Overall, Aldi targeted the entire community of shoppers by offering their needs. Aldi is renowned for customer satisfaction.
Aldi’s focus on the prices of the product came from the background story of its early owners, i.e., brothers Theo and Karl Albrecht. Their thought process is to offer the customer some advantage as compensation of less range of products.
Conclusion
With increasing competition on discount stores, Americans started keeping pace with Aldi, which is concerned more about maintaining a low price tag. Walmart tried to keep the minimal difference in the price compared to Aldi. To tackle this, Aldi went on a national advertising campaign along with increasing food offerings.
