Broke Consumers Turn To Deep Discount Stores Like Aldi
You may be broke, but Aldi isn't! As consumers cut back, more of them are shopping at deep discount stores like Aldi. The German-owned grocer usually doesn't advertise, but the economic slowdown is helping business, and Aldi is investing in a few commercials.
From the WSJ:
Among the beneficiaries of those shifting dollars is Aldi Group, a no-frills, deep-discount grocer that operates more than 900 stores in 29 U.S. states. The chain, based in Germany, used to shun television advertising, but it recently ran a series of national commercials stressing its low prices on private-label products. The campaign's slogan: "Shop Aldi Smart."
Last month, a survey by Retail Forward showed that consumers were doing 25% more of their spending at deep discounters like Aldi than they were a year earlier.
Have you started to shop at more stores like Aldi?
Retailers Recalibrate Pitch To Strapped Consumers [WSJ]
(Photo: Morton Fox )
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Comments:
I regularly shop Aldi for staples like baking supplies, which seldom go on sale elsewhere. Their milk is currently about $2.60 a gallon, compared with over $4 for Wal-Mart.
I find that on other things, a combination of loss-leader sales and coupons enable me to do better than Aldi.
Aldi will also have special buys every week, that range from name-brand food items, to toys and clothing, to electronics. My computer, a Medion, came from there, and I have nothing but good things to say about it. I also have shrubbery growing in my yard I got from them last year. They have a weekly email about the special buys, or you can check their website.
A good piece of a sound shopping strategy, IMO.
I shop there all the time and they do have some really good deals. I cut my grocery bill in half by shopping there. No they are not brand names, but its still good food. I need to get my girlfriend to shop there now so we can cut our grocery bills because she thinks if its not a brand name its not good, and thats a bad way to think.
I've always shopped at Aldi, as did my parents. I don't shop there exclusively, but most of what I buy comes from there. True, it's not always top quality stuff, but 90% of what I buy is comparable to what I'd get at Wegmans and at half the cost. I think most people who don't shop there refuse to because it bruises their ego. They see it as a status thing. I'd shop there even if I made $700,000 a year.
I'm more of a fan of Sav-A-Lot stores. Better selection I think, and to me Aldi's is just...ugh. They sell a bunch of miscellaneous items whereas Sav-A-Lot is just a bargain grocery store.
Granted, to shop and buy there, one has to be quite comfortable with buying generic products, but honestly, most of if not all the food is comparable to the name brand stuff. I stay away from the 'fresh' food there, but I load up on canned veggies, fruits, frozen foods, and pre-packaged meals/mixes (like MacNCheese and Hamburger Helper rip-offs), and baking supplies.
@B: Basically they keep costs down by carrying 1 size of everything and 99% is private label (store brand) products.
Maybe consumers wouldn't be broke if they shopped at places like Aldi regularly.
My wife gets certain things at Aldi like canned goods, snack foods, some produce when it's better there than other places.
Another thing that helps is that she has several friends that all keep track of what is on sale or instock at which store. that way trips can be planned and they don't spend all day store hopping looking for deals. At times they will call each other when in the store and notify them whats available and offer to pick it up for them. That saves lots of time and trips for everyone.
@petrarch1610: When I lived up north, I shopped at Trader Joe's because they were cheaper than Stop & Shop for the basics. Then I'd go to Stop & Shop for meats and produce.
Now I just go to Publix, buy on sale when I can (two for one FTW!) and buy store brands most of the time.
There are three Wal-Marts in my town that I know of. I never go there.
@petrarch1610: That's really not true. They are in fact owned by the same company that owns Aldi's, but Trader Joes' is not run as an Aldi's and is not the same, any more than your dog and your cat are the same just because they are owned by you.
Now if you want to choose to disown TJ's because it's not local or truly independent, have at it. But vilifying them just because they aren't seems silly to me. They are a well-run, clean, appealing place to do business.
Aldi's is none of those. Ownership is irrelevant in this case.
My problem with Aldi's food isn't an ego thing...it's that it's almost all just canned and overprocessed stuff. I don't buy that stuff normally, so it makes little sense to compromise my eating habits just to find a deal. However, if you already eat a lot of canned/processed/frozen food, I can see the attraction. Plus, the stores are clean and well laid out.
As I mentioned above, most Dollar General stores are about 10 minutes from each other (they have 3,200 locations or something) and tend to be better stocked. Cluttered, but better stocked. Prices are at least as good, and they bag your groceries for you. It's like the best parts of Walmart, with none of the bad stuff.
I shopped at Aldi a lot when I was a broke grad student. When I moved to Florida I was sad that there would be no Aldi around, but I've recently learned that they are opening a bunch of stores here.
@battra92: I also shop at BJ's, and get gas there exclusively, and I use as many of the BJ's coupons as I can.
You can't beat the prices on baking supplies, dairy, eggs, canned and boxed goods. The only things we get from nicer grocery stores is produce. We have found that Aldi's produce isn't very fresh. But we save so much money by shopping at Aldi's that we don't mind having to go to another store to buy produce.
@B: Aldi's is a no frills supermarket. I have never seen more than 2 employees in the store at one time. Canned and boxed goods are set out on pallets. They don't pack up your groceries for you. In fact if you want to have paper bags you have to buy them at $.05 each. Otherwise you are free to use empty boxes you find in the store or bring your own. If you want to use a shopping cart you have to put a quarter in the slot to unlock it from the other carts. You do get the quarter back when you return the cart, though. I know it sounds weird, but I like it because there are never any stray carts out in the parking lot to ding your car.
@Ash78: I agree that with you in the whole change what I eat process. Don't go into an aldi's expecting to buy a certain meal. It's likely they will have maybe one or more ingredients needed, but not all of them. Then you have to drive to another store to make a complete meal. Factor in the cost of gas, and you really didn't even save much money, and now you have a bland tasting dish.
However, I disagree with the DG pricing... For example: Dove soap at DG is like $2 (they round everything up to the dollar) but at k-mart the exact same soap is $1.97. I know .03 cents, but DG does this with everything they sell.
And to those who don't know what an aldi's is: It is a discount store where they sell stuff that was over produced. Canned goods, snacks, lunch meats, etc. they do have milk and almost everything a grocery store should, but it's off. It looks like a grocery store, but look down the canned goods isle. Its a bunch of shit you'd hardley ever use, except for maybe corn, grean beans and such. But everything at aldi's is fairly cheap. Canned corn is something around 20 cents. AND... You have to pay a 25 cent deposit for a cart (you get it back when you return your own cart) and like 15 cents per grocery bag. It's best to find a box in the store to use instead of bags. Oh and you have to bag your own stuff. I heard their cashiers (in my town anyway) start off at like $10/hr.
@boomerang86: They started taking credit/debit cards a few years ago in our town. I don't think they take checks.
I miss Aldi. I moved from northern Illinois to Sacramento a couple of years ago and there aren't any Aldi stores in CA. The food there is good and most of it is dirt cheap compared to other stores and brands. There are some products to stay away from at Aldi, but you learn what those are pretty quickly.
Aldi has some good quality products, better then you can get at Walmart or any of the typical grocery stores. They also have some non-quality items. You go there for the good stuff, its cheap, you leave, you get the rest at Hy-Vee.
By the way, I know a few rich people that go there too. Like I said, some of their items are very high in quality. They have "starbucks" drinks that are better then starbucks and only a dollar.
It just makes sense.
I used to go to Bottom Dollar Foods (Food Lion's version of Aldi) to get all of my groceries. The only reason I stopped is because the co-op supermarket behind my apartment has prices that are the same on their store brand (Shur Fine) products that Bottom Dollar does. If I was to continue shopping at Bottom Dollar, any savings I would realize from going there would be negated by the cost of gas to drive there.
It's the same story with Aldi, the closest store to me is about 10 miles down the road on city streets.
@Bladefist: What you reminded me of is an article back in December or so saying that a lot of the rich folks in DC are starting to use Costco, especially for their party purchases.
@Bladefist: They have upgraded their inventory quite a bit in recent years. You can even get real German beer, which kicks ass.
@theblackdog: Yes, I agree. Rich people are rich because they make smart decisions. If you see rich people going to Aldis, you should follow :)
Aldi is incredible. I shopped there in my college days, and would get two weeks worth of genuinely good food for under $30.
It's definitely not for the stuck up, or those who value the comfort of name brands, but I can honestly say that everything I've gotten from there is just as good as the same name brand stuff, and yet is more than 50% less in most cases.
@Ash78: I'm with you, Aldi kind-of scares me. That may just be my local one, but it's really skeezy looking. I'd be uncomfortable buying edibles there ... I'm always expecting the rats to be racing across the parking lot when I'm driving by.
@Oface: yeah considering they don't bag and they get swivel chairs to sit in while the scan. I wonder how good the benifits are? Or do you get a discount on top of their already discounted prices?
@theblackdog: Gaaaahg, there's a cut rate Food Lion? I wouldn't buy soap at Food Lion, every one I've been in has been just downright nasty. A cheaper version can only be worse.
@Bladefist: Exactly so. I think that's one of the main reasons I go to Consumerist and Lifehacker so much. I mean it's not like we're in an age of old money with sterling silver lobster crackers and a hired butler just to sweep up the crumbs.
One thing you won't get at Aldi is customer service. They have a sort of "move it buddy" attitude and the cashiers all seem to not care about anything. Oh well, you have trade offs in everything, I guess.
@petrarch1610 and @iMike: I wondered why I saw Trader Joe's products for sale at an Aldi in Belgium once. Now I know.



























I've tried. I really have. But I just can't bring myself to touch most of Aldi's stuff. They apparently do pretty well, but I don't really get it.
I much prefer going to Dollar General and buying brand-name stuff for Aldi-level prices (even before the expiration date!)