Why is Aldi Cheaper than Other Large Grocery Stores?

Aldi was becoming a trendy place to shop. The quality of the food seemed to have improved significantly. It was then that I started asking, “Why is Aldi cheaper than other grocery stores?”

Three Reasons Aldi is Cheaper than Other Grocery Stores

1) Most Items are Private Label

It’s estimated that about 90% of the products sold at Aldi are private label. The genius behind the Aldi model is that they can still get people into their stores, largely based on their reputation of quality food at low prices.

When we started shopping at Aldi it did take some time to adjust to the more limited selection. However, we have been able to find most everything to meet our family’s grocery needs. All for a fraction of the cost of large supermarkets.

2) Few Workers and Higher Salaries

Cashiers would sometimes go from minimum wage up to $15 an hour. Assistant managers would increase their hourly pay by $5 an hour. That can be life-changing money to some people.

The main reason why their staffing model helps keep costs low is because of the few employees on site at any time. A large supermarket may have dozens of employees working at any time. Aldi usually has three or four staff working at any time.

3) Incredible Efficiency

Everything done at Aldi focuses on efficiency so they can pass the savings on to consumers. From their staffing model to their use of energy-efficient lighting, to their method to stock shelves, and so much more.

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