37 votes

German chain Aldi bets big on cheaper groceries as US shoppers feel squeezed

13 comments

  1. [6]
    vili
    Link
    In case someone else was wondering, I believe this refers to Aldi Süd, or the Aldi brand that operates in Southern Germany, as well as countries including the UK, Ireland, Italy, Switzerland,...

    In case someone else was wondering, I believe this refers to Aldi Süd, or the Aldi brand that operates in Southern Germany, as well as countries including the UK, Ireland, Italy, Switzerland, Austria and Hungary. Aldi Nord, which operates in Northern Germany, France, Spain, Portugal, Poland, Belgium and the Netherlands, is also doing business in the US, but under the Trader Joe’s brand name.

    25 votes
    1. [5]
      CrypticCuriosity629
      Link Parent
      I'm confused, are you saying that there are no Aldis in the US and that Aldis actually operates under Aldi Nord under the Trader Joes names? If so I can tell you we definitely have actual Aldis...

      I'm confused, are you saying that there are no Aldis in the US and that Aldis actually operates under Aldi Nord under the Trader Joes names?

      If so I can tell you we definitely have actual Aldis and Trader Joes here, sometimes next door to each other.

      6 votes
      1. DefinitelyNotAFae
        Link Parent
        Aldi Süd operates as Aldi in the US Aldi Nord operates as Trader Joe's in the US

        Aldi Süd operates as Aldi in the US
        Aldi Nord operates as Trader Joe's in the US

        22 votes
      2. sparksbet
        Link Parent
        There are two companies that run discount grocery stores called "Aldi" in Germany. Due to iirc a disagreement between the founding brothers on selling cigarettes, in the 60s they split into two...

        There are two companies that run discount grocery stores called "Aldi" in Germany. Due to iirc a disagreement between the founding brothers on selling cigarettes, in the 60s they split into two companies, Aldi Nord and Aldi Süd, dividing Germany between them. My friends from Southern Germany have the strong sense that Aldi Süd is better than Aldi Nord, but I can't personally attest to that, as Lidl is the bigger presence as a discounter where I currently live.

        Other countries that aren't Germany have Aldi, but it will obviously be owned and operated in their country by only one of these two companies. There are maps online for this. Aldi U.S., which owns and operates the Aldi grocery stores within the United States, is part of Aldi Süd. However, Aldi Nord purchased the American grocery store chain Trader Joe's in 1979, and it owns and operates that chain in the US. So technically both Aldi companies operate grocery stores in the US.

        9 votes
      3. [2]
        PelagiusSeptim
        Link Parent
        They are saying that the Aldi's we have in the U.S. are run by Aldi Süd

        They are saying that the Aldi's we have in the U.S. are run by Aldi Süd

        5 votes
        1. Promonk
          Link Parent
          Yes. Aldi Nord operates as Trader Joe's in the US.

          Yes. Aldi Nord operates as Trader Joe's in the US.

          1 vote
  2. skybrian
    Link
    From the article: [...] [...]

    From the article:

    Aldi, which is celebrating its 50th year in the U.S., is seizing the opportunity. The grocer announced this month it will open 180 locations across 31 states this year, including in new markets in the Southeast and West, making its total store count close to 2,800 by the end of the year.

    The expansion is part of Aldi’s plan to spend $9 billion in store openings and three distribution centers to reach its goal of 3,200 stores by the end of 2028. In comparison, Kroger and Albertsons have about 2,800 and 2,200 stores, respectively, in 35 states and the District of Columbia under various banners. There are more than 600 Costco’s and more than 3,500 Walmart Supercenters in the U.S.

    [...]

    Aldi is widely recognized as the fastest growing chain across the grocery sector. Real estate services firm JLL reported Aldi outpaced competitors in both openings and square footage added from 2019 through 2024, the latest year with available data.

    [...]

    Aldi’s main draw is its below-market prices, a key advantage over its big box and supermarket competitors. Although Walmart, Target, Albertsons and Kroger have all increased their private-label offerings, about 90 percent of the products in an Aldi store are deeply discounted offerings from its house brand. This innovation shaves down the middleman costs from distributors and consumer goods companies.

    Aldi also has a smaller store footprint than the traditional grocery stores, requiring less product assortment and fewer staff members. Stocking shelves takes a fraction of the time, since most products are displayed in the boxes they were shipped in, and shoppers bag their own groceries.

    Finally, Aldi is ruthless at undercutting its competition, said Katrijn Gielens, a professor of economics and marketing at Tilburg University in the Netherlands. The chain is known for reducing prices when it enters a new market to entice customers to try them out. And once they’ve shopped at Aldi, they’re more willing to stay, she said.

    12 votes
  3. [3]
    okiyama
    Link
    An Aldi opened literally across the corner from me in river North Chicago. It's a god send and also an extremely clear recession indicator when, prior, the closest 3 groceries were whole foods,...

    An Aldi opened literally across the corner from me in river North Chicago. It's a god send and also an extremely clear recession indicator when, prior, the closest 3 groceries were whole foods, trader joes, and jewel osco (a very solid local chain)

    River north historically (early 2000s) been extremely yuppy, now it's mostly young professionals like me that make a stones throw to and from 6 figures that love comfortably but are ecstatic to get good groceries at same prices.

    I mean, the eggs alone. It was a huge meme and I stopped buying them because at the other stores it was minimum 5 bucks but usually 7 for the "we torture each chicken" variety and 10 for the "chickens have their own cages yay!" Varieties. Aldi has them at 1.89 last I checked, never been above 3.
    Like I said, God send. I love alone so even if a costco popped up I'd keep it to Aldi for my own sake of variety and space saving

    12 votes
    1. [2]
      Akir
      Link Parent
      Aldi is actually one of the reasons why I'm convinced that major grocers are making their money exploiting the population who live around them rather than competing for their business. All of...

      Aldi is actually one of the reasons why I'm convinced that major grocers are making their money exploiting the population who live around them rather than competing for their business. All of those mergers cannot have been a good thing.

      Eggs are almost certainly a loss leader for them, though. That's why they have signs saying you can only buy so many at a time.

      18 votes
      1. okiyama
        Link Parent
        Oh yes certainly, it's definitely a flex but a flex that puts clean protein into the populace at reasonable prices. As with all things, the truth is in the middle. My only complaint (albeit why...

        Oh yes certainly, it's definitely a flex but a flex that puts clean protein into the populace at reasonable prices. As with all things, the truth is in the middle.

        My only complaint (albeit why the prices are so low) is they have no hot food at all. I still stop at jewels somewhat often to grab a loaf of fresh baked bread, rotisserie chicken for stock, that kinda thing.

        6 votes
  4. Froswald
    Link
    I finally decided to check out the Aldi that opened up in my area after being a regular Super 1 Foods shopper (mostly due to it opening so close to my house an NFL pro could bean the front door...

    I finally decided to check out the Aldi that opened up in my area after being a regular Super 1 Foods shopper (mostly due to it opening so close to my house an NFL pro could bean the front door from my front porch.) It was downright magical seeing meat and produce anywhere from 20% to over 50% cheaper, not accounting for sale prices. Other items were about the same price or maybe like, 20 cents cheaper--but I was smitten. Genuinely, I didn't think you could find decent quality and relatively cheap prices these days. Super 1 Foods still has the variety for those niche purchases, but Aldi sells shelf-stable gnocchi, prepackaged havarti, and the first frozen alfredo meal that I've had which actually tastes like the freshly made version. If all that wasn't enough to win me over, the cashiers get to actually sit in chairs. It actually looked like it would be fun to be one! I didn't even mind bagging my own groceries since it gave me a moment to recollect myself since sometimes I get a bit internally spazzed out in public.

    3 votes
  5. DiggWasCool
    Link
    I have two issues with Aldi (in the States at least)... They seem to operate on just like one employee per store (I'm exaggerating a little but I'm probably not that far off). Good luck if...

    I have two issues with Aldi (in the States at least)...

    They seem to operate on just like one employee per store (I'm exaggerating a little but I'm probably not that far off). Good luck if something happens, like there is a spill on aisle 4 or someone dropped eggs by the freezer. Because there are barely any employees working, suddenly you have a line of 25 people because one of the two employees on duty had to clean up the spill.

    The other issue is they just sometimes don't have some items. They run out of certain foods. Almost every single time I go to Aldi, I always walk out of there not having completed all my grocery shopping. I still have to go to Kroger, Publix, Walmart, etc., because Aldi didn't have some foods that every grocery store should. No joke, earlier in the week I stopped by to get groceries and they didn't have half & half. No, not that they had some off brand or they only had a four gallon size container of half & half. No, they just had no half & half. How in the world does a grocery store run out of half & half? That's okay, I can go to Kroger and get some but then I walk down to the meat section and they have no salmon. Again, it's not that they have some random ass brand of salmon I've never heard of, or they only have a cut of salmon I don't like, no they have no salmon whatsoever. Again, this probably wouldn't be too big of a deal if it were just these two items this one time. It happens every single time with one item or another.

    3 votes