How Does Aldi Compete Successfully with Other Supermarkets?

Title: How does Aldi compete successfully with other Supermarkets?

By Jared Morisset

Globe University

Many may wonder how a smaller business can compete with a much larger business, but how does Aldi successfully compete in the grocery market with other major supermarkets?

Competitive Environment

They have eliminated most of the items that individuals take for granted in other supermarkets, such as shopping carts and grocery bags. However, even with those odds against you, the customer is still allowed to bring their own bagging items; for example a box or bin. As for the shopping carts, a customer can pay a quarter to temporarily rent a cart, and upon returning the cart, the customer’s quarter is returned.

Aldi succeeds with cheaper product to provide competition in the competitive environment. There are more and more of Aldi’s locations being built and appear to be gaining ground on the popularity chart. Of course it would only make sense to save money by consuming basically the same product, just from a different brand and paying a fraction of the normal cost. The savings on produce are another area where Aldi really excels. The quality is meets expectations and the prices are very reasonable.

Aldi originally came over to the US from Germany in 1976 formed by the Albrecht brothers. They shortened the name to Aldi to signify the discounted items.

By 1980, Aldi had a growth of around 25 stores a year. Now in the past few years it has accelerated their expansion by adding more than 250 new stores and have plans another 160 by 2015. Aldi knew that the US would offer a very competitive environment and would pose challenges, but the consumer would prevail to the savings.

Return of Investment

Aldi invests in the management of the store and employees, as well as the product in their inventory in order to produce a profit margin. What is very interesting about the employment opportunity with an Aldi branch is that the starting wage for a cashier is...