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  4. We went to Aldi stores in the US and the UK to compare and saw how the chain uses different strategies to attract budget shoppers on 2 continents

We went to Aldi stores in the US and the UK to compare and saw how the chain uses different strategies to attract budget shoppers on 2 continents

We went to Aldi stores in the US and the UK to compare and saw how the chain uses different strategies to attract budget shoppers on 2 continents
An Aldi store in the US.Business Insider/Hayley Peterson
  • We visited Aldi in the US and UK to see how they compare.
  • The UK store seems more up-to-date than the US, with self-checkout stations and a fresh bakery.

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

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

Most of the fruits and vegetables — including apples, celery, and cucumbers — were pre-wrapped in plastic. This is somewhat unusual in the US, though not unheard of.

Most of the fruits and vegetables — including apples, celery, and cucumbers — were pre-wrapped in plastic. This is somewhat unusual in the US, though not unheard of.
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, like these English muffins and loaves of bread.

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

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

The Aldi store we went to in the UK was an Aldi Local in Dalston, London.

The Aldi store we went to in the UK was an Aldi Local in Dalston, London.
Grace Dean/Insider

As of mid-December, Aldi had nearly 750 stores across the UK. I'd visited the chain a lot growing up, but had never been to be one of its convenience-focused Local store formats before, which are much more compact.

As of mid-December, Aldi had nearly 750 stores across the UK. I
Grace Dean/Insider

Source: Aldi

The first thing I saw when I entered the store was a large display dedicated to Aldi's "super 6." The chain chooses six fresh fruits and vegetables to discount each fortnight, and splashes out on TV, print, and billboard adverts for these offers.

The first thing I saw when I entered the store was a large display dedicated to Aldi
Grace Dean/Insider

When I visited, the savings that the offers gave you varied massively. The prices of the grapes had been slashed by a third – but the mangos had just been reduced from £0.69 to £0.59 ($0.94 to $0.80).

When I visited, the savings that the offers gave you varied massively. The prices of the grapes had been slashed by a third – but the mangos had just been reduced from £0.69 to £0.59 ($0.94 to $0.80).
Grace Dean/Insider

Like the US store, the UK Aldi had a mix of well-known brands ...

Like the US store, the UK Aldi had a mix of well-known brands ...
Grace Dean/Insider

... as well as own-label rivals at much lower prices.

... as well as own-label rivals at much lower prices.
Grace Dean/Insider

Some of the products looked like they were made by smaller brands I'd never heard of before ...

Some of the products looked like they were made by smaller brands I
Grace Dean/Insider

... until you turned them over and saw that the product was "specially produced for" Aldi.

... until you turned them over and saw that the product was "specially produced for" Aldi.
Grace Dean/Insider

Some of Aldi's products were almost replicas of big-name brands. I spotted these Yankee Candle lookalikes.

Some of Aldi
Grace Dean/Insider

Both the store design and product packaging featured a lot of Union Jacks and honed in on how many of the items were British ...

Both the store design and product packaging featured a lot of Union Jacks and honed in on how many of the items were British ...
Grace Dean/Insider

... including the eggs, milk, and meat.

... including the eggs, milk, and meat.
Grace Dean/Insider

The exterior of the store had a big flag, too.

The exterior of the store had a big flag, too.
Grace Dean/Insider

But despite the Union Jack displays in the produce aisle and emphasis on local products, not all of the fruits were grown in the UK.

But despite the Union Jack displays in the produce aisle and emphasis on local products, not all of the fruits were grown in the UK.
Grace Dean/Insider

There were also signs throughout the store mentioning awards that Aldi had won ...

There were also signs throughout the store mentioning awards that Aldi had won ...
Grace Dean/Insider

... as well as stickers on the fridge displays that discussed the store's eco merits.

... as well as stickers on the fridge displays that discussed the store
Grace Dean/Insider

Overall the decor of the store was quite minimalistic and modern.

Overall the decor of the store was quite minimalistic and modern.
Grace Dean/Insider

The aisles were wide, the shelves were neat, and the color scheme was dark and simple. Regular-sized Aldi stores in the UK have a middle aisle selling its so-called "special buys" that can include clothes, camping gear, coloring books, and kitchenware at discounted prices. But this smaller store didn't have a middle aisle ...

The aisles were wide, the shelves were neat, and the color scheme was dark and simple. Regular-sized Aldi stores in the UK have a middle aisle selling its so-called "special buys" that can include clothes, camping gear, coloring books, and kitchenware at discounted prices. But this smaller store didn
Grace Dean/Insider

... and a sign outside the store, as well as on Aldi's website, said that some of the products may be delayed "due to the current disruptions to global shipping."

... and a sign outside the store, as well as on Aldi
Grace Dean?

Some of the aisles were well-stocked when I visited at 11 a.m. on a Tuesday ...

Some of the aisles were well-stocked when I visited at 11 a.m. on a Tuesday ...
Grace Dean/Insider

... while others had large gaps in their inventory, like the bakery display. Aldi's discounter rival Lidl is especially well-known for its bakery section in the UK.

... while others had large gaps in their inventory, like the bakery display. Aldi
Grace Dean/Insider

Like in the US store, Aldi displayed some items in pallets and trays, too.

Like in the US store, Aldi displayed some items in pallets and trays, too.
Grace Dean/Insider

The prices were very low, something Aldi prides itself on. Large whole chickens cost just £3.69 ($4.95) each.

The prices were very low, something Aldi prides itself on. Large whole chickens cost just £3.69 ($4.95) each.
Grace Dean/Insider

There was a good selection of plant-based products ...

There was a good selection of plant-based products ...
Grace Dean/Insider

... though half of the vegan and vegetarian freezer display was taken up by meat and fish, and the side actually dedicated to non-meat produce was nearly empty.

... though half of the vegan and vegetarian freezer display was taken up by meat and fish, and the side actually dedicated to non-meat produce was nearly empty.
Grace Dean/Insider

Offers were advertised throughout the store, including a refrigerated section dedicated to "super weekly offers" ...

Offers were advertised throughout the store, including a refrigerated section dedicated to "super weekly offers" ...
Grace Dean/Insider

... which had an interesting selection of heart-shaped cheese truckles, dairy-free mozzarella, and American-style pancakes.

... which had an interesting selection of heart-shaped cheese truckles, dairy-free mozzarella, and American-style pancakes.
Grace Dean/Insider

Some products on their expiry date had been slapped with 30% off stickers, too.

Some products on their expiry date had been slapped with 30% off stickers, too.
Grace Dean/Insider

What I found really interesting was the use of dummy bottles for spirits in the alcohol section, which didn't actually have liquid in them.

What I found really interesting was the use of dummy bottles for spirits in the alcohol section, which didn
Grace Dean/Insider

I'd never seen a sign like this before.

I
Grace Dean/Insider

The lower-value drinks weren't replaced with dummy bottles, though.

The lower-value drinks weren
Grace Dean/Insider

Though there were a few staffed checkouts available, the store was dominated by self-service ones. The area was decorated with a huge print of a Union Jack.

Though there were a few staffed checkouts available, the store was dominated by self-service ones. The area was decorated with a huge print of a Union Jack.
Grace Dean/Insider

Self-service checkouts are fairly standard in the UK, and I had no issues using them, but I had never seen them at Aldi before. The store's format meant it would likely have a high number of transactions with just a few items in each.

Self-service checkouts are fairly standard in the UK, and I had no issues using them, but I had never seen them at Aldi before. The store
Grace Dean/Insider

By letting customers check themselves out, the store would save on wages, too.

By letting customers check themselves out, the store would save on wages, too.
Grace Dean/Insider

In both countries, Aldi's branding is built around its budget strategy, with signs and displaying emphasizing its low prices.

In both countries, Aldi
Mary Meisenzahl/Insider

There were some inventory differences, though. The US location we visited didn't have a bakery, and it didn't sell alcohol due to New York state laws.

There were some inventory differences, though. The US location we visited didn
Business Insider/Hayley Peterson

The London location had much more country-specific branding, with Union Jacks on many products and a focus on how they were British. There was no real equivalent in the US store.

The London location had much more country-specific branding, with Union Jacks on many products and a focus on how they were British. There was no real equivalent in the US store.
Grace Dean/Insider

The UK store seemed more modern, with self checkout areas and a more sleek, neutral toned look. The US version had boxes and shelves in all different colors, and regular checkout lines.

The UK store seemed more modern, with self checkout areas and a more sleek, neutral toned look. The US version had boxes and shelves in all different colors, and regular checkout lines.
Mary Meisenzahl/Insider

Despite the differences, both stores were mostly full of private label products at competitive prices, designed to attract budget-focused shoppers in both countries.

Despite the differences, both stores were mostly full of private label products at competitive prices, designed to attract budget-focused shoppers in both countries.
Mary Meisenzahl/Insider

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