Food inflation has been a major headache for large supermarket chains, but an opportunity for a previously unknown discount supermarket chain with a unique culture.
The fastest-growing supermarket chain in the U.S. (in terms of number of stores and traffic) probably isn’t the one you imagine.
It may be one you’ve barely heard of or haven’t even visited yet. Its e-commerce capabilities are practically nonexistent compared to its competitors.
Their stores are about half the size of an average supermarket (18,000 square feet versus 38,000). Products are often displayed in large shipping boxes that clog the aisles. You won’t find the national brands you’re familiar with: about 90% of what they sell is private label.
The selection of products available changes from week to week. If you want a shopping cart, it will cost you 25 cents to rent one (refundable upon return), and it’s best to bring your own bags because there aren’t any in the store.
Meet Aldi, easily the world’s most unique (and at the same time most interesting) discount grocery retailer, but also one of the largest, with a fleet of around 12,000 stores.
Its interesting history
It is also one of the oldest, with roots dating back to pre-World War II Germany, and its name is due to the combination of the first two letters of the family that originated it: Albrecht and Discount.
Among customers, it is one of the most popular stores, according to annual surveys byYouGov.com.
In 2011, Aldi had just 1,140 stores across the United States. Today, the number is close to 2,500 and is on track to surpass 3,000 by the end of this year, marking the brand’s rise to prominence in the grocery market, surpassing its closest competitor, Albertsons.
Aldi’s footfall increased by more than 12% in the fourth quarter of 2024, according to eMarketer.com.
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Aldi and its success
Aldi’s success stems from its deeply discounted prices, thanks to fewer employees handling tasks like retrieving shopping carts (hence the 25-cent rental fee) and restocking shelves (hence the opening of shipping boxes in the aisles); its exclusive stocking of fast-moving items; and a wide selection of quality private-label products.
The pandemic and food inflation were a huge boost to Aldi’s growth.
It consistently ranks as the most affordable place to buy groceries and household essentials. Finding an Aldi used to require determination, according to the authors of «Bare Essentials: The Aldi Success Story.» The stores were (and still are) located on side streets or in peripheral areas where rents are lower, but they are close to larger competitors.
The typical Aldi customer also visits a traditional supermarket.
If you look at it in more depth, you’ll begin to understand why Aldi enjoys cult status among inflation-conscious consumers.
