Aldi has been one of the fastest growing retailers of any kind in the United States. The German grocery store chain grew from a single location in 1976 to over 2,300 domestic stores today. The company added about 120 new stores in 2023 alone and doesn't seem to have plans to slow down anytime soon.
In 2022 (the last full year for which finalized data is available), Aldi gained about 9.4 million new customers. Of course, one of the reasons for the growth is a wider footprint. As a personal example, a new Aldi opened in late 2023 about 10 minutes away from my house, while I previously would have needed to drive about half an hour to shop at Aldi.
There are plenty of good reasons why so many Americans have become loyal Aldi customers in recent years. Here are just a few of them.
Aldi costs less than its rivals
First and foremost, shoppers love how much further their grocery budgets can go at Aldi. Many different comparison studies have been done, and almost all have found that Aldi has generally lower prices than other popular chains -- even those known for discount prices. For example, Aldi's produce has been found to be up to 68% cheaper than Walmart's, and it can be significantly cheaper for organic meats.
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With inflation hitting grocery prices hard in recent years, being able to save money on food is more important than ever to Americans' personal finances. And Aldi can certainly help you do it.
Aldi sells versions of popular products with safer ingredients
As a parent of two picky children, ages 8 and 5, it's a constant struggle trying to balance foods my kids will eat with making sure they're eating reasonably healthy products.
For example, my daughter only wants to eat Cap'n Crunch cereal for breakfast, while my son doesn't want anything but Lucky Charms. Unfortunately, both of those are filled with dyes and other junk we don't really want to eat. Aldi not only offers its own version of each that is completely dye-free, but they're also significantly cheaper than the name-brand products. And most importantly, my kids can't tell the difference in taste.
This is just one example. Aldi offers several versions of popular products without dyes and other ingredients that should generally be avoided.
Aldi products are guaranteed
A guarantee is especially important when a store sells a lot of unique products like Aldi does. Fortunately, all Aldi exclusive products have the company's "Twice as Nice" guarantee, which essentially says that you can bring back any product you don't like and get your money back.
Some exclusions apply, but this does make me feel more comfortable about being a bit adventurous when it comes to food shopping.
The bottom line
To be sure, there's no such thing as a perfect grocery store, and Aldi isn't an exception. For example, you need a quarter to use an Aldi shopping cart, and there have been times when I forget one (I understand why Aldi does it, but this is still a pain point). And Aldi doesn't always have the same products in stock from visit to visit, at least not as reliably as some of its competitors.
Having said that, ever since an Aldi opened near my house, that's become my go-to grocery store for many items. And as you can see, there are some excellent reasons.
FAQs
Aldi offers lower prices on many items and superior product quality at the same time. Aldi's guarantee gives shoppers peace of mind to try new products without worrying about wasting money.
Why is Aldi better than other supermarkets? ›
Private brands and minimal staff add up to big savings
The thing that likely makes the biggest difference in avoiding higher grocery prices is that the chain sells very few brand name items. In fact, 90% of Aldi's products are private-label and much cheaper than the big brands.
What sets Aldi apart from other supermarkets? ›
ALDI is known for its low prices, smaller store format, and focus on private-label products. It typically carries a limited selection of items compared to traditional supermarkets, but those items are often deeply discounted.
Why do people like Aldi's? ›
Aldi is more than just another budget supermarket. It cuts costs by keeping things simple, but without sacrificing quality. Plus, if you're nervous about trying non-branded products, Aldi's generous refund policy has you covered.
What makes Aldi different from other stores? ›
Quality and Safety. At ALDI, our teams carefully select the best products to meet all of your requests. From healthier choices, gluten-free items, along with other dietary needs and preferences, more than 90% of the products in our stores are under our exclusive brand.
Why do people choose Aldi? ›
Aldi costs less than its rivals
First and foremost, shoppers love how much further their grocery budgets can go at Aldi. Many different comparison studies have been done, and almost all have found that Aldi has generally lower prices than other popular chains -- even those known for discount prices.
Why do customers love Aldi? ›
Aldi is barebones
Shopping at Aldi is a no-frills experience, but that cuts down on costs, which is ultimately to the customers' benefit. You might not even see shelves in some aisles. Instead, items are displayed in the boxes they were shipped in.
Does Aldi own Trader Joe's? ›
Aldi Nord also owns the Trader Joe's grocery chain in the United States which operates separately from the group. Aldi Süd's responsibilities are for Southern Germany, Australia, China, Ireland, United Kingdom, United States and through Austrian subsidiary Hofer AG in Austria, Hungary, Italy, Slovenia and Switzerland.
Is Aldi owned by Walmart? ›
Owned by a German company called Albrecht Discounts, ALDI is a discount grocery chain that started in Germany in 1948. Decidedly no frills, the company stocks virtually all house-brand products, all offered at very low prices thanks to exclusive deals with their suppliers, many of which are big-name producers.
What is Aldi's competitive advantage? ›
The company operates more than 10,000 stores across 20 countries and is known for its no-frills approach to retail. Aldi's business model is built on simplicity, efficiency, and cost savings. The company achieves this by streamlining its operations, reducing overhead costs, and keeping prices low.
These weaknesses are internal strategic factors that can prevent the retailer's growth or reduce its business performance. Aldi has the following weaknesses: Thin profit margins. Limited market presence.
What is the big deal about Aldi? ›
We hand-select and curate high-quality products for you and your family. We can't promise you'll find ten choices of the same item, but we can promise you'll find the best ones at the best price.
What is Aldi's reputation? ›
Aldi has been named as the nation's most popular supermarket, according to new polling data for Q4 2023 from YouGov. In the poll, Aldi maintained its position at the top, ranking ahead of its traditional Big Four rivals, as well as M&S and fellow discounter Lidl.
Where does Aldis food come from? ›
When it comes to meat and produce, it's likely that Aldi is sourcing from local farmers in your area. According to Aldi's website, it "teams up with top growers throughout the U.S., including local growers." When it comes to local produce, it's one of the ways the grocery chain saves money.
Who is Aldi rival? ›
Aldi's main rival Lidl started its rewards app four years ago, linking it with offers for its in-store bakeries, but Mr Hurley said he was not planning on deploying a similar tactic at Aldi anytime soon.
Why Aldi over other supermarkets? ›
They started as a small corner store in Germany, and quickly expanded their business by offering low-cost products and efficient operations. Aldi made a name for itself by selling a limited selection of private label products at low prices, keeping costs down by avoiding fancy store layouts and packaging.
What makes Aldi good different? ›
At ALDI, we're all about homegrown goodness. In fact, 100% of our meat & eggs, 97% of fruit & veg and 82% of dairy comes from Down Under, so you know you're tucking into the taste of Good Different.
What is Aldi's comparative advantage? ›
In contrast competitors may sell a larger variety of different brands, sizes and packaging. By selling fewer varieties of each product Aldi can buy much larger quantities. This enables it to take advantage of economies of scale and source products more cost effectively.
Is Aldi really that special? ›
Limited Varieties, Big Savings
Some grocery stores carry anywhere from 4 to 10 brands of each item. Aldi's motto is less is more. By keeping a smaller footprint and less variety, the store is able to operate efficiently and keep prices low.
What is unique about Aldi stores? ›
From an extensive line of organic, gluten-free and vegan foods to fresh meats, fish and produce delivered daily, we source only the best quality for our shelves. With our smaller selection of high-quality foods, along with wider aisles and smaller stores, our shoppers can save time and money.
