Bigger Isn’t Better: Why Aldi’s Business Model Leads to Happy Customers and Rapid Expansion
Have you ever gone to the grocery store and spent hundreds of dollars? It’s enough to make anyone go crazy! That’s why many shoppers are turning to Aldi to get their produce, cereal, and snacks for the family.
If you’ve never been to Aldi, rest assured, you probably will in the near future. Get your tote bags ready because there are over 1,500 stores across 35 states in the U.S. The grocery chain has been steadily growing since 1976 when the first store opened in Iowa.
This is how Aldi outshines the competition!
#1 – Low Prices
Aldi isn’t necessarily known for their larger-than-life inventory. In fact, they only have about 1,500 items on their shelves at a given time – significantly less than the thousands of items supplied by larger grocery chains and superstores. What Aldi lacks in product diversity, however, they make up for with extremely LOW prices. You won’t break the bank trying to feed your family.
#2 – Equal Quality
Go aisle to aisle and you’ll see privately owned, off-brand items that look familiar to the mainstream brands. For example, you won’t find Cheerios at your local Aldi, but you can pick up Crispy Oats (their exclusive knockoff). The taste is fairly similar, but you won’t be paying the Cheerios cost. What could be better than delicious food at a cheaper price than you would typically pay?
#3 – Going Green
There is a lot of talk about the state of the environment and what we can do to help. Aldi is leading the pack with their green efforts. According to their environment page, they were recognized by the EPA (Environmental Protection Agency) for their record-breaking environmental efforts. They also charge for bags and reuse product boxes for customers to carry to their cars.
#4 – Employee Benefits
The average cashier at Aldi makes an average of $12.00 per hour, plus receives great benefits including health insurance, a 401K plan, and paid vacation time. This kind of goodwill with employees pays off in spades for the grocery chain. Employees come to work happier, and in turn, provide a better experience for the customers. Good customer service is what keeps shoppers coming back to Aldi.
The key lesson to be learned from Aldi is that if you build it, they will come, and if they keep coming, you can keep building it. Aldi has expanded a lot since it’s early days, and it doesn’t seem like the company has plans to stop anytime soon. In fact, they are only one year into their five-year, $5.3 billion growth plan, which includes 800 new stores, remodeling the old locations, and including even more items in their product line. The future looks bright for this growing company!
What are your thoughts on Aldi? Do you think they’ll continue to give larger chains a run for their money? Would you sacrifice name brands to save money?