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Aldi, a brutally efficient grocery chain, is upending America's supermarkets

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Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#41

It's quite impressive how things have turned. Not long ago Walmart was about to disrupt the German supermarket landscape. They even tried to cut prices to below market cost to conquer Aldi, Lidl, and the other big discount supermarket chains. After a couple of years they gave up and left. Now Aldi appears to be "fighting back" successfully in the US. The history of Aldi's efficiency [0] is pretty impressive. It actua…

Quite an insight. Costco has the similar product strategy with narrow product offering, and it's doing quite well.

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#42
In the last year in my neighborhood Aldi and Lidl have opened up stores across the street from each other. Lidl announced they were building a store and the following week Aldi announced they were opening their store across from them in a space which used to be another grocery store.

Aldi should have been able to open long before Lidl but the renovation of the space took forever. Whenever I drove by the were ever at most a handful of workers and for periods of time no work got done.

Lidl had to wait until their proposed building gained zoning approval to start construction which was several months after Aldi began construction; however, whenever I drove by the Lidl site it was full of construction workers. They managed to open only 3 or 4 months after the Aldi when it should have been at least 8 months after.

During the 3 months before Lidl opened Aldi did good business due to their low prices but no one I spoke to was thrilled with the place. The inside was dark and uninviting. The vegetable and fruit selection was poor and in very bad condition. Often it was moldy or wilted. The selection was awful but everyone assumed that was part of what you traded for the low prices.

Lidl opened and the building is full of light and welcoming. There is a frequently changing selection of quality fruit and vegetables. In almost all product categories Lidl has more selection with prices similar and frequently lower than Aldi.

The Lidl has remained constantly busy since opening and the Aldi has become a ghost town. If the experience here is typical than Aldi is going to have a tough fight on it's hands as Lidl expands in the US.

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#44
post #12
post #5

Earlier quoted context omitted.

It helps if you just imagine that every large brick and mortar chain in the Nordic countries operates kind of like IKEA. Lots of self service, spartan shop interior, and also, since labour is expensive here and you can't fuck your employees over with low wages like you can elsewhere, store owners tend to want to cut down on the number of staff.

My god, aldi/lidl and ikea are the worst shops in europe. I can't imagine a country filled with the same awful shops

The Nordic countries are not big on service, because you're a big boy and can take care of yourself. The reason IKEA came from Sweden is because that's the attitude here. Shop clerks aren't there to be your servants. They are your equals. Foreigners often complain of the awful service they get here, but it's a deliberate part of the working culture.

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#45

I guess I'm a weirdo who likes shopping there. Compared to Kroger or HEB I usually walk out of Aldi with a bill 50% cheaper than the other stores. We have our own bags and a picnic like basket thing we keep in the truck for Aldi stops. Yes it's "generic" but my uncle worked for a big food company that made big brand food and "generic" is often just a label change over the brand name. I can see why the rich people wou…

> a quarter to get a cart, 4-6 isles, no in car delivery, you have to bag your stuff yourself.

Europe.

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#46
post #16
post #4

Most of the stuff they're doing seems to be entirely commonplace for the supermarket chains we have here in Norway. The coins for the carts. Stacking crates instead of individual items. Training every employee for everything (it's not uncommon to see a store manager operating the cash register). Expecting customers to fill their own bags and charging for those bags. Smaller selection. The only unique part seems to be…

Seems like most of the points you listed are a deterioration from the customer's perspective.

As I've mentioned elsewhere in this thread, Scandinavians are big on DIY and minimalism, and not big on service. This is a common complaint from foreigners who visit, but it's the working culture here. You, the customer, a a big boy and can take care of yourself.

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#47
Just a quick alternative viewpoint: as a parent, I’ve been turned off by Aldi in the past.

Often with a toddler and/or car seat in hand, unlocking a cart (for example) is not just an inconvenience, it’s a dealbreaker.

I’m into the pursuit of efficiency and low prices, but there are some real world benefits of “full service” grocery stores.

One being an nicer experience for the disabled (in my case, due to being a parent).

I’m guessing they don’t have those motorized carts either?

Anyway, I’m happy that there are alternatives. We’ll probably give Aldi another chance when our kids are older.

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#48

So, "Aldi" actually means lots of different things. Two German brothers (Karl and Theo Albrecht) formed ALDI in 1946. In the 60s, they split the company in two, resulting in Aldi Nord (Theo) and Aldi Süd (Karl). In the '90s, the brothers retired as CEOs and transferred ownership to family trusts. The companies operate in different geographical areas. Originally, the brothers split across the Rhine, but now Aldi Süd i…

”Two German brothers (Karl and Theo Albrecht) formed ALDI in 1946. In the 60s, they split the company in two”

Brothers starting a company and splitting up later to produce two successful companies seems to be a German thing. The Dassler brothers did it too, forming Adidas and Puma (https://en.wikipedia.org/wiki/Adidas#Split_and_rivalry_with_...)

Back to Aldi: it always surprises me that the two Aldi’s don’t get accused of forming a cartel. It is fairly clear that they agreed to split the market. I guess that doesn’t get them into trouble because a) there are other large players and b) they can’t be accused of doing it to prevent a price war.

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#49

I guess I'm a weirdo who likes shopping there. Compared to Kroger or HEB I usually walk out of Aldi with a bill 50% cheaper than the other stores. We have our own bags and a picnic like basket thing we keep in the truck for Aldi stops. Yes it's "generic" but my uncle worked for a big food company that made big brand food and "generic" is often just a label change over the brand name. I can see why the rich people wou…

The problem for me with Aldi in The Netherlands is that most of the stuff I buy there are so salty, it just tastes bad.

What kind of stuff? I usually buy raw ingredients from Aldi, maybe except curries and pre-cooked rice packets if I'm very lazy. I haven't found the pre-made stuff especially salty

Re: Aldi, a brutally efficient grocery chain, is upending America's supermarkets

#50
post #12
post #5

Earlier quoted context omitted.

It helps if you just imagine that every large brick and mortar chain in the Nordic countries operates kind of like IKEA. Lots of self service, spartan shop interior, and also, since labour is expensive here and you can't fuck your employees over with low wages like you can elsewhere, store owners tend to want to cut down on the number of staff.

My god, aldi/lidl and ikea are the worst shops in europe. I can't imagine a country filled with the same awful shops

I've actually experienced much better service at aldi/hofer and ikea than at other stores in europe. Staff are very happy to help answer questions and track down hard to find items.
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