In Tough Times, Aldi Promises Cheap Thrills

Shoppers turn to Aldi for cheaper groceries as recession looms
By Amelia Atlas,  Newser Staff
Posted Nov 7, 2008 1:28 PM CST
In Tough Times, Aldi Promises Cheap Thrills
As food prices continue to rise, Aldi grocery stores are luring customers away from more expensive chains.    (PRNewsFoto)

It may not stock Coke or tempt shoppers with fancy end-aisle displays, but bare-bones grocery chain Aldi fits these tough economics, reports Time. With Americans downgrading to cheaper stores, Aldi's generic, spartan approach is attracting customers eager to save a buck, or more, on a gallon of milk. The chain cuts costs by offering staples—ketchup, cereal, olive oil—in one brand in one size.

Aldi's well-tested European business model undercuts its competitors by up to 90%, eliminating frills like free plastic bags and payment by credit card while keeping in-store staff to a five-employee maximum. Targeting urban neighborhoods where real-estate costs favor Aldi's minimal spatial needs—no butcher here—the chain plans to expand by 100 stores over the next two years. (More food prices stories.)

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