What is Aldi doing right?

[Lowell]

In today's Free Press I read where German-owned discount grocer Aldi plans to open 800 new stores nationwide. The article did not disclose what plans it may have for Michigan or Metro Detroit.

There is not one near me so I don't have experience with Aldi but I often notice them in what some might consider challenging locations, seemingly willing to operate in lower and moderate income neighborhoods and prosper. Even Highland Park has an Aldi. Another one is across from a Costco I use, seemingly undaunted by that competition.

This seems contradictory to stories of businesses closing allegedly due to customer theft or other business failings, as in the Rite Aid closing thread.

Anyone use them? If so, what are they doing right?

[Zacha341]

Yes, I shop Aldi - for years. Grand there are three in the D area. One actually in Detroit: Mack and Alter. The other H-Park and one on Eight Mile near Meyers. Aldi IMO superior to Save-a-Lots that closed.

With prices of foods up at least 15%+ Aldi provides a good if not great alternative. I don't like their frozen offerings much, but their canned and dry goods and some of their snacks very good.

Some of their frozen fish/ shrimp offerings are excellent. But similar to Trader Joes some house brands come and go. Get them as you can!

Sometimes produce is a good buy. Seasonally. Especially the Aldi's at Orchard Lake/ Farmington Road. They even have discount wine.

Aldi used to offer [10 cent each] nearly indestructible plastic 'Aldi super bags' as they were known. They've switched to paper.

You need a quarter for their carts but some leave them not retrieving quarter at the rack for someone else to access a cart for free.

For most produce and rice IMO no chain store [including Aldi] beat the prices at the indie stores such as in Hamtramck and Dearborn.

On my way to Al-Haramain on Joseph Campua or Caniff today.

[Honky Tonk]

In today's Free Press I read where German-owned discount grocer Aldi plans to open 800 new stores nationwide. The article did not disclose what plans it may have for Michigan or Metro Detroit.

There is not one near me so I don't have experience with Aldi but I often notice them in what some might consider challenging locations, seemingly willing to operate in lower and moderate income neighborhoods and prosper. Even Highland Park has an Aldi. Another one is across from a Costco I use, seemingly undaunted by that competition.

This seems contradictory to stories of businesses closing allegedly due to customer theft or other business failings, as in the Rite Aid closing thread.

Anyone use them? If so, what are they doing right?

They keep their prices low for one, with no frills. They offer a good value for my money. On the negative side, they carry a lot of house brands, so you have to do a bit of experimenting to settle in on what suits you. Once I got out of that name brand advertised mentality, I found a lot of their brands are as good as or better than the competition. IMO

[401don]

I do find it a bit odd that they are doing so well. They focus on packaged goods, sales of which have generally been on the decline in recent years. Canned soups and vegetables, etc. are not very healthy and people who can afford to, often try to buy fresh these days. They are less expensive for these items but are they really much cheaper than the no name brands available at regular grocery stores? Maybe some people can't be bothered looking for sale items. It appears they fill a niche, locating in lower income areas that don't have a Costco nearby or people don't want to buy a membership.

[Zacha341]

Some swear by their meats, but I've never purchased meat goods at Aldi. When I am on my salty entertainment food kick I do favor their house brand of Kettle Mesquite Potato chips......

[Richard]

We have them for years,smaller store footprint,no bags,bring your own,25c for the cart,in neighborhoods medium income.

They do not work for me because they are kinda like the old European model where you shop daily because they sell smaller stuff,like 1 lb sugar,3 lb potato’s and they are not a one place shop unless you tailor your menu to them.

But I dislike shopping so I shop by the month verses by the week.

They are not cheaper than a regular supermarket if you look at the price verses package size,same price as the others but smaller packages. 8oz verses 12 oz.

Having said that they bought out the 546 store Winn Dixie supermarket chain,and Harvey’s which was a large part of their 800 store expansion in the South.

I have not been in the Winn Dixie sense the acquisition to see what has changed .

Hard to describe other than a fancy Dollar General,I did watch a program where they spend a lot of energy to make their house brands taste no different then the top shelf name brands.

I kinda think Detroit needs a full service supermarket verses these neighborhood style small footprint markets.

Wal-Mart tried mimicking them with their neighborhood market thing and have shut most of them down,there is still one by me that does not even carry dairy products so it’s not a one shop stop.

Do not know about the theft thing ,they are not really in those neighborhoods,like the Dollar Generals where they put a long metal pole on the cart so you cannot get it out of the door.

That was the answer to the food desert thing,put a dollar general on every corner,there is 5 of em within 1/2 mile from me.

[Canadian Visitor]

I do find it a bit odd that they are doing so well. They focus on packaged goods, sales of which have generally been on the decline in recent years. Canned soups and vegetables, etc. are not very healthy and people who can afford to, often try to buy fresh these days. They are less expensive for these items but are they really much cheaper than the no name brands available at regular grocery stores? Maybe some people can't be bothered looking for sale items. It appears they fill a niche, locating in lower income areas that don't have a Costco nearby or people don't want to buy a membership.

I think something to keep in mind, in the U.S. context is that the hard discount segment of the grocery sector is less developed than in Canada.

In Canada virtually every major chain group has a hard discount brand [[ Loblaws - No Frills, Sobeys - Freshco, Metro -Food Basics etc.)

The keys to the segment, other than less elaborate store decor, and fewer service counters, are less selection, lower rent locations, and more focus on store brands.

In doing all of the above, you are able to offer a lower overall price point on what you're selling.

In the case of Aldi, in particular, they are also much smaller format. So for people who despise wandering around a Costco or Walmart for an hour just to get that quart of milk that's 3 blocks into the store; Aldi is much more compact, often as little as 10,000ft2, and you can get in/out much faster.

Of course they also have some niche offerings, like Trader Joes and others, playing to their strengths. ie. You'll tend to see more German/East European product offerings than you might at another chain grocer.

This is an interesting video on Aldi in the U.S. vs Aldi in Germany by a German living in the Cincinnati area w/her American boyfriend.

https://www.youtube.com/watch?v=wEJ1nyIoVNs

[JBMcB]

There was one by our old house, and the nearest one to our new house is still the old one, so it's a little inconvenient to shop there.

In general, they have lower prices on most name-brand things, and their house-brands tend to be about the same quality at a lower price point than the name brands. The produce, at the one we went to at least, was pretty bad, and their meat selection was just OK.

They use warehouse club tactics to save money. They don't bother unboxing stuff, they wheel it out in the shipping cartons and tear off the top and side so you can get at it. They have an ingenious quarter-deposit system to make you bring the cart back to the store so they don't need cart attendants. The end results of all this is they don't need to employ as many workers, which keeps costs low.

I'm not sure how many more stores they are opening in Michigan, but a big part of their recent expansion is the purchase of the entire Winn-Dixie chain, which is mostly in the southern states.

[Zacha341]

We have both to some extent including a mid-sized Meijers on Eight Mile [Detroit side of the street] We also have three Mikes full service grocers which while not perfect are full service. I would not expect you to be aware of these varied neighborhood stores - not living here.

I was surprised to see how Savon Foods is still thriving on Livernois and Curtis. University Grocery in WSU is high priced and meat not good IMO but an alternative to ultra expensive Whole Foods. I'm looking forward to our new Food Coop opening on Woodward near Clairmont very soon.

Aldi's indeed fills a saving niche. I am glad they've made the commitment to stay in the city of Detroit.

I kinda think Detroit needs a full service supermarket verses these neighborhood style small footprint markets...

[Richard]

^ Depends one where one shops for store brand discounts,We have Publix,which is pricey and has a hard and fast following,their house brands are actually the regular brands,just with their name on them for a few dollars less,not like Wal - Mart where some of their off brands are nasty.

I cannot thing of the name now but there is a home delivery supermarket thing that is a popular chain in the north and has zero brick n mortar in the south but you see their trucks everywhere.

[Richard]

We have both to some extent including a mid-sized Meijers on Eight Mile [Detroit side of the street] We also have three Mike full service grocers which while not perfect are full service. I would not expect you to be aware of these varied neighborhood stores - not living here.

I was surprised to see how Savon Foods is still thriving on Livernois and Curtis. University Grocery in WSU is high priced and meat not good IMO but an alternative to ultra expensive Whole Foods. I'm looking forward to our new Food Coop opening on Woodward near Clairmont very soon.

Aldi's indeed feels a saving niche. I am glad they've made the commitment to stay in the city of Detroit.

The council, an advocacy group in Detroit working to develop a sustainable and equitable food system, notes there were 74 traditional grocery stores in 2017, before Detroit lost several. In 2021, the city gained two, but two more have since closed, leaving just 64 grocery stores in the 142-square-mile city.

https://www.bridgedetroit.com/grocer...ss-detroiters/

I get a kick about when the refer to the “food desert” thing because they always refer it to like unless there is a Whole Foods in every neighborhood it’s a food desert ,I never even been in one but a local market is not going to establish and sell products with the intent of trying to change one’s eating habits.

People go into a liquor store to buy liquor,not to buy health food bars in an effort to make people stop buying liquor.

[jcole]

A lot of house brand goods from store to store are made by name brand manufacturers and are the same product with a different label.

They keep their prices low for one, with no frills. They offer a good value for my money. On the negative side, they carry a lot of house brands, so you have to do a bit of experimenting to settle in on what suits you. Once I got out of that name brand advertised mentality, I found a lot of their brands are as good as or better than the competition. IMO

[jcole]

The sometimes sell seasoned roasts of different types to take and cook. We bought a Barria one yesterday and it is awesome. Some I won't touch. Also, their steaks can be iffy, but good low fat ground beef.

Some swear by their meats, but I've never purchased meat goods at Aldi. When I am on my salty entertainment food kick I do favor their house brand of Kettle Mesquite Potato chips......

[Gistok]

I shop Aldi's weekly, and find its' prices pretty good. I find that the price of staples [eggs, milk] to be pretty low, and some produce I don't touch, but I do find that a lot of it is good value. I like their store brand pasta/sauce to be a good value. Soups are priced like elsewhere. One area that I do like are their frozen desserts and pizza.

Also, they have an import brand name called "Deutsche Küche" [German Kitchen], and get to try some unique European foods, especially their frozen items.

I also like their selection of European chocolates/bars. Mostly dark chocolate, with even truffles at a decent price.

The only negative I can say about them is that they will have some items that you really like... and then after months, they disappear from the shelves for long periods of time, or for good. They had large very good apple pies [not really sweet, the way I like it] for only $5.86... that were awesome... seasonal, now gone! And I loved their Belmont frozen Key Lime Pies... family raved about them... gone for good. And I loved their canned lower sodium [Country Kitchen] Chicken & Dumplings soup... gone for good!

[Richard]

^ I like their cherry thingy they only have around Christmas time,I forget what it is called but our version can sit in the cupboard for 50 years and still be edible.

That’s why I stopped going to them,specific reasons,but no consistency,they will have something different,then poof.

I think they are good if you are single or live in an apartment without much storage space and like shopping 2 times a week.

Not really sure what their target market really is,it’s not like a Wal -Mart or Target or Krogers - that’s the delivery service here that I forgot the name,no brick n mortar but trucks everywhere like Amazon .

[Meddle]

I used to go to one. They were great ... for a while. Worth the extra 15-20 mile drive.

They're now one of the higher priced stores. I can almost always beat their prices. I've been in the same store twice in the last two years. Walked in, checked their prices, walked out without buying anything.

[Zacha341]

Pricing is so weird these days. You have to really be sharp to see the rip offs. For example Trader Joes sells a fancy spaghetti sauce for $3.99 right next to their Marinara Sauce versions, same size for $1.99! Similar ingredients matters little to me as I add my own items anyway.

I purchased two jars of the Marinara as they may catch on next month!

[softailrider]

I use the one over past Costco on Telegraph occasionally. It's pretty good, I'm not in love with it like some people are. Their meat is a little weird, it's sealed up in heavy plastic with an expiration date 2 weeks down the road, I tried a couple of those ribeye's, they were good. Very good ice cream, I'm referring to their premium brand.

Usually, I sink or swim at Kroger's or Meijers. Been down in Florida, Can't beat Publix bakery, love their bread.

[Gistok]

^ Agree about Aldi's meat... especially how the hamburger is wrapped. I have bought their boneless pork chops periodically, and they're OK. I usually go there and buy about 10 items... their pasta sauce @ $1.29, and their uncooked pasta is very reasonable... their breakfast cereal, 12 grain whole wheat bread is great, and like I said milk and eggs. I also buy their organic bananas for the price of regular bananas elsewhere. And since I have become a bit lactose intolerant, I will buy a few half gallons of Almond Milk [[sugar free) for about 1/2 the price elsewhere.

It is not a "buy everything you need" grocery store... but it supplements my visits to Meijers and Nino's. And their frozen pizza, cakes and pies are really good.

[Zacha341]

^ Yeah my more 'everything' store is Meijers and a few house brands from Krogers using my rewards card.

With this economy and weakening dollar you have to shop around. Some food purchases are otherwise almost four to five dollars 'each', shockingly so [compared to not long ago].

Unless you find alternatives! By shopping around.

[Gistok]

Glad Lowell started this thread... I had a sealed package of Aldi's Deutsche Küche uncured [[no nitrates) Bratwurst in the fridge that were nearing their sell-by date... stuck them on the Foreman Grill... and YUM!!

Contently full... now where's my German Scrabble Board...

What's the German word for Floor Scrubber Rental Store??

[313WX]

Yes, I shop Aldi - for years. Grand there are three in the D area. One actually in Detroit: Mack and Alter. The other H-Park and one on Eight Mile near Meyers. Aldi IMO superior to Save-a-Lots that closed.

With prices of foods up at least 15%+ Aldi provides a good if not great alternative. I don't like their frozen offerings much, but their canned and dry goods and some of their snacks very good.

Some of their frozen fish/ shrimp offerings are excellent. But similar to Trader Joes some house brands come and go. Get them as you can!

Sometimes produce is a good buy. Seasonally. Especially the Aldi's at Orchard Lake/ Farmington Road. They even have discount wine.

Aldi used to offer [10 cent each] nearly indestructible plastic 'Aldi super bags' as they were known. They've switched to paper.

You need a quarter for their carts but some leave them not retrieving quarter at the rack for someone else to access a cart for free.

For most produce and rice IMO no chain store [including Aldi] beat the prices at the indie stores such as in Hamtramck and Dearborn.

On my way to Al-Haramain on Joseph Campua or Caniff today.

There are also Aldi locations in Eastpointe [[9 Mile & Kelly), Roseville [[10 Mile & Gratiot) as well as NE Detroit [[8 Mile & Gratiot).

[313WX]

^ Depends one where one shops for store brand discounts,We have Publix,which is pricey and has a hard and fast following,their house brands are actually the regular brands,just with their name on them for a few dollars less,not like Wal - Mart where some of their off brands are nasty.

I cannot thing of the name now but there is a home delivery supermarket thing that is a popular chain in the north and has zero brick n mortar in the south but you see their trucks everywhere.

You're thinking of Kroger.

They have locations virtually everywhere [[under various marquees) *BUT* Florida, because [[as implied) that's Publix country.

[313WX]

A lot of house brand goods from store to store are made by name brand manufacturers and are the same product with a different label.

That's true in most cases, but then you also have H-E-B in Texas. They make a lot [[if not majority) of their store-brand products in-house, including their milk, chips, ice cream, cookies, yogurt and bread.

[313WX]

We have them for years,smaller store footprint,no bags,bring your own,25c for the cart,in neighborhoods medium income.

They do not work for me because they are kinda like the old European model where you shop daily because they sell smaller stuff,like 1 lb sugar,3 lb potato’s and they are not a one place shop unless you tailor your menu to them.

But I dislike shopping so I shop by the month verses by the week.

They are not cheaper than a regular supermarket if you look at the price verses package size,same price as the others but smaller packages. 8oz verses 12 oz.

Having said that they bought out the 546 store Winn Dixie supermarket chain,and Harvey’s which was a large part of their 800 store expansion in the South.

I have not been in the Winn Dixie sense the acquisition to see what has changed .

Hard to describe other than a fancy Dollar General,I did watch a program where they spend a lot of energy to make their house brands taste no different then the top shelf name brands.

I kinda think Detroit needs a full service supermarket verses these neighborhood style small footprint markets.

Wal-Mart tried mimicking them with their neighborhood market thing and have shut most of them down,there is still one by me that does not even carry dairy products so it’s not a one shop stop.

Do not know about the theft thing ,they are not really in those neighborhoods,like the Dollar Generals where they put a long metal pole on the cart so you cannot get it out of the door.

That was the answer to the food desert thing,put a dollar general on every corner,there is 5 of em within 1/2 mile from me.

The Walmart Neighborhood Markets are doing very well here in DFW [[which, BTW, is Walmart's largest & most profitable region).

I actually have 3 WM Supercenters within a 3 mile radius of my home on top of a WM Neighborhood Market, and I much prefer going to the WM Neighborhood Market if given the option. It's far less chaotic.

DFW is actually an interesting case, and I'm pretty sure is the most competitive grocery market in the country. On top of being a stronghold for Walmart, it's a major cross section for both Kroger + Alberstons, Aldi has a huge presence [[not to mention actively expanding), a number of ethnic grocery chains have multiple locations here [[H-Mart, Patel Brothers, 99 Ranch, Fiesta, etc.), WinCo has a solid presence here, it's one of 3 metro areas in the US [[the others being Denver & Minneapolis) with a ton of Target Supercenters and on top of that, H-E-B is now undergoing an aggressive expansion. That of course goes without mentioning Whole Foods, Trader Joe's and Sprouts [[also aggressively expanding here) and a regional chain called Brookshires on the outskirts of the Metroplex.

It's night and day from Florida [[with Publix & Winn-Dixie dominating) and Detroit [[with Kroger & Meijer dominating).