scorecardSee inside Aldi, the discount grocery store set to become one of the largest chains in the US
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See inside Aldi, the discount grocery store set to become one of the largest chains in the US

Mary Meisenzahl   

See inside Aldi, the discount grocery store set to become one of the largest chains in the US
Beth Hall/AP Images for Weber Shandwick for Aldi
  • Aldi is a low-priced grocery stores with over 2,000 US locations.
  • As inflation drives grocery prices up, customers are searching for deals.

Aldi is a discount grocery chain founded in Essen, Germany in 1961. In 1976, the company opened its first US location in Iowa and today it has more than 2,000 stores in 36 states.

Aldi is a discount grocery chain founded in Essen, Germany in 1961. In 1976, the company opened its first US location in Iowa and today it has more than 2,000 stores in 36 states.
Mary Meisenzahl/Insider

I visited an Aldi location in Rochester, New York. To pick up a cart at the entrance of the store, I had to put a quarter inside to unlatch it from the rest of the carts.

I visited an Aldi location in Rochester, New York. To pick up a cart at the entrance of the store, I had to put a quarter inside to unlatch it from the rest of the carts.
Mary Meisenzahl/Insider

I got my quarter back when I returned the cart at the end of my shopping trip. Aldi doesn't have to pay workers to return shopping carts, because customers are incentivized to do it themselves.

I got my quarter back when I returned the cart at the end of my shopping trip. Aldi doesn
Mary Meisenzahl/Insider

As retailers grapple with a shortage of workers, eliminating low pay positions is one way businesses can stay ahead.

As retailers grapple with a shortage of workers, eliminating low pay positions is one way businesses can stay ahead.
Mary Meisenzahl/Insider

I walked inside and was immediately in the produce section.

I walked inside and was immediately in the produce section.
Mary Meisenzahl/Insider

Most of the fruits and vegetables — including apples, celery, and cucumbers — were pre-wrapped in plastic.

Most of the fruits and vegetables — including apples, celery, and cucumbers — were pre-wrapped in plastic.
Mary Meisenzahl/Insider

In a recent price comparison, Aldi had lower prices on produce than Walmart did.

In a recent price comparison, Aldi had lower prices on produce than Walmart did.
Mary Meisenzahl/Insider

The rest of the store looked similar to the produce aisle.

The rest of the store looked similar to the produce aisle.
Mary Meisenzahl/Insider

Products are on shelves right inside their cardboard packaging.

Products are on shelves right inside their cardboard packaging.
Mary Meisenzahl/Insider

Or, they're still in pallets used for transportation.

Or, they
Mary Meisenzahl/Insider

This also saves money on labor, because workers don't have to spend time unboxing each product and arranging them on shelves.

This also saves money on labor, because workers don
Mary Meisenzahl/Insider

Aldi stores are a bit smaller than traditional grocery stores at about 12,000 square feet, with just five large aisles.

Aldi stores are a bit smaller than traditional grocery stores at about 12,000 square feet, with just five large aisles.
Mary Meisenzahl/Insider

Another way Aldi keeps costs down is by selling private-label brands.

Another way Aldi keeps costs down is by selling private-label brands.
Mary Meisenzahl/Insider

The chain says more than 90% of its products are Aldi brands.

The chain says more than 90% of its products are Aldi brands.
Mary Meisenzahl/Insider

Source: Aldi

Aldi does sell some well-known brands like Coca Cola, but the Aldi private label version is stocked right next to it.

Aldi does sell some well-known brands like Coca Cola, but the Aldi private label version is stocked right next to it.
Mary Meisenzahl/Insider

Aldi takes care to make its products look similar to brand names. These boxes of macaroni and cheese could definitely pass for Kraft without a closer look.

Aldi takes care to make its products look similar to brand names. These boxes of macaroni and cheese could definitely pass for Kraft without a closer look.
Mary Meisenzahl/Insider

Though they look the same, Aldi's mac and cheese it about a third of the price at 34 cents per box compared to 98 cents for the same size of Kraft at Walmart.

Though they look the same, Aldi
Mary Meisenzahl/Insider

Aldi's flavored seltzers are right next to LaCroix, and the boxes are even decorated in similar styles.

Aldi
Mary Meisenzahl/Insider

The meat section was well stocked, though smaller than at a Walmart in my area. The prices were among the best deals in the store, though.

The meat section was well stocked, though smaller than at a Walmart in my area. The prices were among the best deals in the store, though.
Mary Meisenzahl/Insider

Next to the meat there was a large freezer section with frozen meals, snacks, and desserts.

Next to the meat there was a large freezer section with frozen meals, snacks, and desserts.
Mary Meisenzahl/Insider

A section in the center of the store seemed to be made up of odds and ends, with storage items, appliances, toys, and other mismatched items.

A section in the center of the store seemed to be made up of odds and ends, with storage items, appliances, toys, and other mismatched items.
Mary Meisenzahl/Insider

Aldi also cuts costs at the checkout aisle, where cashiers save time by not bagging groceries.

Aldi also cuts costs at the checkout aisle, where cashiers save time by not bagging groceries.
Mary Meisenzahl/Insider

Customers can take their carts to a shelf against the back wall and bag groceries themselves into reusable bags Aldi sells or free boxes to carry heavy items.

Customers can take their carts to a shelf against the back wall and bag groceries themselves into reusable bags Aldi sells or free boxes to carry heavy items.
Mary Meisenzahl/Insider

Aldi's branding is built around its budget strategy — its biggest fans know what they're getting with low-cost groceries and no-frills aisles.

Aldi
Mary Meisenzahl/Insider

Some areas of the store seemed a bit disheveled, but customers didn't seem to mind.

Some areas of the store seemed a bit disheveled, but customers didn
Mary Meisenzahl/Insider

The chain has found a successful niche among budget-conscious shoppers in the US.

The chain has found a successful niche among budget-conscious shoppers in the US.
Mary Meisenzahl/Insider

As inflation continues to drive up grocery costs, it could also lead more shoppers to Aldi in search of deals.

As inflation continues to drive up grocery costs, it could also lead more shoppers to Aldi in search of deals.
Mary Meisenzahl/Insider

Source: Insider

In 2020, Aldi was the fastest growing grocery store chain in the US.

In 2020, Aldi was the fastest growing grocery store chain in the US.
Mary Meisenzahl/Insider

Source: Aldi

The chain plans to open 150 US stores in 2022, plus a new distribution center in Alabama.

The chain plans to open 150 US stores in 2022, plus a new distribution center in Alabama.
Mary Meisenzahl/Insider

Source: Insider

These openings would make it the third largest grocery store in the US, behind only Walmart and Kroger.

These openings would make it the third largest grocery store in the US, behind only Walmart and Kroger.
Mary Meisenzahl/Insider

Source: Insider

I hadn't been to Aldi in years, but I was impressed. I'll definitely be back to take advantage of deals and lower costs on produce and meat compared to my usual stops.

I hadn
Mary Meisenzahl/Insider

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

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