Beyond its rapid growth and coin-operated shopping carts, Aldi is arguably best known for its low prices.
So how does Aldi manage to keep its products so affordable?
Removing some national brands allows Aldi to produce and sell its own items and offer them for less.
Photo: Jonathan Weiss / Shutterstock. Design: Eat This, Not That!
Plus, the higher volumes enable Aldi to negotiate cheaper prices with suppliers.
Some of Aldi’s private-label brands include Simply Nature, Specially Selected, and liveGFree.
Meanwhile, fresh and frozen items were almost 16% cheaper at Aldi.
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The stores are also smaller in sizeusually about 20,000 square feet.
This is less than half the size of an average grocery store.
The smaller size keeps rent and energy costs down and requires fewer employees.
The money-saving efforts don’t stop there.
Last year, Aldi spent around $20 million switching to digital price tags.
Aldi passed these savings on to customers by lowering the prices of fresh meat in return.
Going forward, Aldi intends to keep growing.
There are currently 2,372 Aldi stores in the U.S., according the thecompany’s website.
