Have you seen the low prices and wondered, “Why is Aldi so cheap?”
I almost feel like ‘cheap’ is the wrong word when describing Aldi. ‘Inexpensive’ is a more correct word because ‘cheap’ can imply low quality, which is NOT true for Aldi.
A better way to think about it might be to ask the question: How does Aldi ensure that all of our products have the lowest price with the highest possible quality?
Their entire vision and mission revolves around one guiding principle: “Great quality shouldn’t come at a high price; rather, great quality should come with everyday low prices.”
Let’s dive into the top reasons Aldi’s prices are unbeatable without sacrificing quality.
Key Takeaways
- Efficient & Active Cost-Cutting Strategies: Aldi reduces operational costs by focusing on non-name brands, seasonal items, and minimal store decor.
- High-Volume Purchases & Fewer Buying Options: Aldi can secure lower prices by buying in bulk and offering fewer choices.
- ‘Private Label’ or Exclusive Brand Products: Aldi’s own house brands cut out the middleman, lowering costs while maintaining control over quality.
- Fewer Employees: Streamlined operations require fewer staff, leading to reduced labor costs.
- Customers Pitch In: Customers bag their groceries and return their carts, which helps Aldi reduce overhead.
Why Is ALDI So Cheap? My Top 5 Reasons Why Costs Stay Low
1. Efficient & Active Cost-Cutting Strategies
Aldi is able to maintain low prices by implementing efficient and active cost-cutting strategies.
The store focuses on its own house brands rather than name-brand items, which often cost less while still offering quality comparable to more expensive brands.
Aldi stores also rotate specialty products with seasonal items and overstock products, ensuring a dynamic selection without the overhead of permanent stock.
By not providing bags, having less store decor, and even having fewer store ads online and in print, Aldi reduces operational costs, passing those savings directly to the customer.
These streamlined strategies allow Aldi to offer keep prices low without compromising on quality.
2. High-Volume Purchases & Fewer Buying Options
Since there are fewer product choices, more people are buying the same products. This means that Aldi can buy in larger volumes, getting a bulk-buy discount that makes restocking the store cheaper.
Larger quantities mean lower unit prices for them and for us. Personally, I’ve come to really appreciate the lack of choice if it means Aldi prices can stay low.
When I go to other grocery stores to buy egg noodles, I have choices. There are two or three brands plus the store brand. Do I really need so many options?
At Aldi, there are egg noodles—one type. That’s it, take it or leave it. With basic products, the lack of choice saves me a lot of time, and the products are less expensive.
3. ‘Private Label’ or Exclusive Brand Products
At least 90% of Aldi’s products are its own exclusive brands. This cuts out the middleman, which saves money, and gives Aldi more control over the quality of its products.
Since it’s their brand, they offer a 100% refund plus replacement if you’re not fully satisfied. Alid carries some name-brand items, which are priced the same at other grocery stores, but their house brand is less expensive.
Having their exclusive brands also means virtually zero advertising costs for their products. That savings is passed to you as well.
In my experience, Aldi is cheap on price, not quality. I can get their fresh produce, spaghetti, yogurt, tomato sauce, and whatever else without paying inflated prices.
4. Fewer Employees
Next time you’re at other grocery chains like Wegmans, Albertsons, Kroger, Trader Joe’s, and many others, imagine how many employees are working at any given time.
Figure 4-5 cashiers, 2-3 at the deli, 2-3 at the butcher, 2+ for stocking, 3+ for grabbing carts from the parking lot, a florist, a few bakers, and throw in 2 managers. I’m counting over 20, and I’m probably missing a few.
Because of their efficiencies, they simply don’t need nearly as many employees. Shelf stocking is quicker since they don’t remove their display/packaging boxes.
Their products have barcodes on up to five sides, which makes scanning quicker. Because people get through checkout lines so quickly, fewer employees are needed at checkout.
At my local Aldi, in the middle of the day, there might be 5-6 employees working at any given time. Most Aldi stores have fewer than 10 employees, which means lower costs.
5. Customers Pitch In
“Do you have your Aldi quarter?” This is a common phrase among Aldi regulars. Aldi shopping carts stay locked up in their cart corral and you have to deposit a quarter to unlock one for you to use.
After you’re done, just return it to the corral to retrieve your quarter. Since customers are returning their carts themselves, there is no need to pay an employee to fetch carts from all over the parking lot.
Carts staying locked up means fewer, if any, of them “walk off”, which means they don’t have to pay for replacement carts.
Since customers supply their own bags, Aldi employees leave bagging to the customer. Aldi stores have a bagging area for customers to pack their own groceries, which also allows the checkout lines to go quicker!
If someone said to me, “Would you be willing to bag your own groceries and return your cart if it meant you could save $20+ on your grocery bill?” I wouldn’t even hesitate to save money!
Other Aldi Posts & Meal Plans
Are you interested in grocery shopping at Aldi now? There are so many great products and meals you can make with their stuff!
Here are some related posts I have about Aldi and the great meals you can start making:
- 13 secrets you don’t know about Aldi
- 30 must-buy items at Aldi
- A review of an Aldi ribeye steak
- 62 Organic foods you never knew Aldi carried
Oh – and in case you’re interested, check out my Aldi Gluten Free Meal Plan! 10 super easy meals prepared in about an hour for $150!
Final Thoughts
If we compare Aldi to other stores, you can really rack up your savings while still getting food you’ll love. Their entire business model is designed to reduce costs for everyone without sacrificing quality.
This isn’t just good business; it’s true customer service, which is why I think they’re the best supermarket chain for frugal families.
Aldi’s focus on lowering your grocery bill while ensuring you get high-quality products is the best way they can serve their customers.
In doing so, they make healthy, affordable food accessible to more people. Aldi shows that you don’t have to sacrifice quality for savings, making it a win-win for shoppers who want the best of both worlds.
Another example, most whole wheat sliced bread has over 2g of sugar per slice but Aldis has less than 1 g per slice. And they’re so much cheaper than the store. So, better ingredients used and 50%+ cheaper, I’m a fan for life!
I shop at Aldis all the time. Didn’t realize that! Thanks for the good info.
I thought as you did years ago — they just sell cheap food. So I bought expensive brand green beans elsewhere and Aldi’s green beans. (First off I should tell you there is no difference in taste.) I then opened both cans to compare size and # of stems in the can. Even though the size in the expensive size were all comparable with the Aldi’s can, there were twice or more stems on the beans in the expensive can. I don’t eat stems so that is added weight that costs me money. No more expensive brands for my house.
I shop almost exclusively at Aldi, now that they carry so many gluten free products.
In Germany there is not even in the fanciest supermarket someone who bags your groceries.
And nearly every supermarket locks its carts.
But I love shopping there, too.
It’s 470 ft beeline away from my home 😉
Went to Aldi today. I purchased a 4 oz. container of prosciutto, an 8 oz. block of mango habanero cheddar, a 4 oz. container of crumbled Feta cheese, an 8 oz.ball of fresh mozzarella and 6 ciabatta rolls in a bag…for $13.60!!!
They finally opened one about 20 minutes drive from my house. There was one next to my university that I went to so I went to the new location nearer to my house for nostalgic purposes and found myself buying dozens of items. Aldi is cheaper than Walmart with far superior quality. Many items are European made. I bought Brioche Bread made in France, Kalamata Olives packed in Greece, and a pepper mill made in Germany. Their Moser Roth chocolate is top quality. They used to carry something called Waffernuse made in Austria. They were the best but they stopped… Read more »
About the waffernuse you probably were the victim of Aldi’s seasonal foods! At the holidays they carry many imported cookies, cakes, etc. but do not carry them year round. So just wait til November and you’ll probably see your favorites. I personally love the German cookies!
How is it so cheap.? Where are the ingredients coming from? What is the quality control? Are the laborers providing the food getting a fair wage? Is the food being adulterated as China is known to do?
Read the article. That answers all of your concerns.
yea this is a pro aldi article not going into the real statistics of there organization, and what about there long lines and no workers, I hat using there carts, they make me feel like I’m a criminal, also the price of plastic bags is cheap so there not really saving anything compared to what they lose from people like me who want bags
Man oh man I loves me some Aldi. Nothing I like better then getting all up in their with my Aldi, you know what I’m sayin? I grew up loving me some Kellogg’s Frosted Flakes. Now, for reasons I can’t get into here, I was “away” for 15 years. Now I’m out and about and broke as a joke. So Aldis my peeps. Well, they ain’t got Frosted Flakes. But they have Dusted Flakes. Man I couldn’t tell the difference. And instead of Cheerios, they got Whirlyos. Same dang thing man. And instead of Fruit Loops, they got Fruity Loopers….dang… Read more »
This was the best review I have ever read!
I’m hoping you see my comment I know this is an old blog post. But, I love shopping at Aldi’s and we are moving this summer to an area where the closest Aldi is over 80 miles away. Where would you recommend shopping?
Not the blogger, but i.thought I woukd share my experiences. If you are moving to an area with a sizable Asian population, look into Asian markets – for example Han Ah Reum (aka H Mart) or Lotte. Their produce prices are among the cheapest I’ve found in any grocery store with the possible exception of Aldi, and their selection and quality are top notch. The same is true of theur fish, and it is much fresher than anything you will get elsewhere including Aldi. Can’t really.comment on their meat. Unfortunately, you will probably have trouble finding many items that you… Read more »
I love shopping at Aldi’s! I started shopping there when my kids were young and I had gone through a divorce. My oldest son always thought he was missing out on something because he was getting the Aldi’s version of Fruit Loops instead of the name brand. Now that he has a family of his own, he shops at Aldi for a good percent of their products. I can honestly say that there are many products Aldi sells that I prefer over the national name brands and would pay more money to get it over the national brand if that… Read more »
Very informative article! My neighbor mentioned she shops at Aldi and prices are low a few years ago. I’ve always avoided Aldi because I assumed quality must be lacking somewhere. I took a chance about a month ago and after shopping between Aldi and my usual store, HEB, I’ve decided to go full on at Aldi from now on. You just can’t compete with the price, the process, people, and quality.