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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

#91
post #40

Earlier quoted context omitted.

The article does cover all these points about well-off people shopping there, too. In fact, it points out that "Aldi’s core shopper tends to make more money and have a slightly higher education level than the overall grocery shopper".

Their streamlined checkout is the secret. Much better than waiting 10 minutes in line at Wal-Mart for the privilege of checking yourself out and then exiting past the "greeter" who assumes you're a thief.

That and consistent placement that isn't constantly rearranging the whole store or order on shelves based on which brands they want to push hardest this week. Nor having 244 brands of everything competing for attention. You can load the things you do want so much faster. We mostly know exactly where stuff is going to be - as it's always been there.

Sure it breaks sometimes when they add new items, or switch in the Xmas range, but compared to the majors - very rarely.

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

#92

Earlier quoted context omitted.

My kids are 3 and 5 and we've shopped at Aldi continuously since they were born. I'm not sure what you're talking about. Unlocking a cart takes almost no extra effort beyond what you'd expend to get one at any other store.

Unlocking a cart is a foreign concept in the US. Not sure if the parent is in the US but any grocery store that has locked carts there is doomed to fail.

[deleted]

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

#93
post #44
post #12

Earlier quoted context omitted.

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.

>Shop clerks aren't there to be your servants. They are your equals.

I love that attitude. I've always felt a bit weird in very high end establishments where the staff are overly deferential.

> Foreigners often complain of the awful service they get here

In addition to your point, I think this also has something to do with people from Nordic countries being a less likely to smile at strangers than people from smiling cultures.

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

#94
post #40

Earlier quoted context omitted.

The article does cover all these points about well-off people shopping there, too. In fact, it points out that "Aldi’s core shopper tends to make more money and have a slightly higher education level than the overall grocery shopper".

Their streamlined checkout is the secret. Much better than waiting 10 minutes in line at Wal-Mart for the privilege of checking yourself out and then exiting past the "greeter" who assumes you're a thief.

Krogers pulled me back a little with scan bag go. Scan your stuff while you shop, pay at self checkout, walk out. It's so much faster than even Aldi.

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

#95
post #68

Earlier quoted context omitted.

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

I think I just started to understand why the US has such a low unemployment rate but so many are paid minimal wage...

Out of ~80M hourly wage workers, only ~500k of them are paid minimum wage. Given the size of the workforce and the fact that starter jobs do exist, that's not 'so many' at all..

[1] https://www.bls.gov/opub/reports/minimum-wage/2017/home.htm

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

#96
I'm an industrial engineer and geek out about Aldi frequently. Here are a few things I've noticed (and researched) which differentiate them from others.

-they have barcode on 5 or 6 sides of their products, and they're typically huge! They nearly never need to orient a product to scan it. Their scan speed is far faster than any other supermarket I've been at.

-if two products are very similar, they'll change the packaging in an obvious way. Blueberry and blackberry yogurt typically look very similar, but the lids are obviously dark and light purple at Aldi. They can glance down and count how many of each, scan one, then hit the number pad for the quantity. I haven't seen the number pad used extensively at any other grocer.

-they combine varieties (like flavors of granola bars) of product in the same box. This greatly reduces the shelf space required.

-depositing a quarter for a cart eliminates the need to pay people to collect carts

-they keep product the box from the manufacturer. This eliminates labor from unboxing and facing product.

-they don't have plastic bags. You can grab boxes (normally a waste stream) and take them home with you.

-they don't list a phone number for their stores. With as few as 2 people on site during the slow times, they can't afford to have anyone on the phone.

-their conveyor belt is far longer than most stores. You should be able to get your entire cart worth of groceries on the conveyor at once. This minimizes the slowness of people handing one item at a time to the next checker.

-They're big on turning inventory over. If they trial a product and it doesn't sell well enough, they have no problem simply not carrying it anymore. You can't always get everything set Aldi, but you can get 85-95% of items you need there.

-they wanted to avoid vendor lock-in, so they had two POS vendors develop solutions simultaneously, awarding the contract to the one which provided the best solution.

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

#97
post #84
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…

I wonder how Lidl's doing in Finland, which traditionally has had just 2 major chains really and not a whole lot of price pressure. No Aldi though.

It's doing well. It was a real revolution when they came, they have an army of fans, and every time I visit there's a few more.

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

#98
post #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 acc…

AFAIK when it comes to (German) competition/cartel law, they're in some ways considered as if they were a single entity. There's a rule treating companies that openly strongly align like that as if they were commonly owned, so they can't pretend to compete with each other, presumably if one tried to buy an actual competitor the market position of both would be taken into account, ... So yes, it'd be trouble if they in sum started to dominate the market etc.

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

#99
post #16

Earlier quoted context omitted.

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

Based on my experience that's pretty standard for european grocery stores. No cashier in Europe is ever going to bag your groceries. Despite bagging your own groceries being a universal experience I haven't yet seen a local properly use a self-serve checkout kiosk. Instead of scanning an item and putting it in a bag on the weighing platform they instead scan the items and put them on the weighing platform, then pay,…

I just did that a few hours ago. It somehow feels like playing Frogger and Tetris at the same time, and I'm having trouble managing the multitasking. At least when the cashier does the scanning, you still have a bit of time to plan how to divide the load over the too few bags you took up front.

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

#100

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 crazy part about Aldi isn't just their food prices but the odd things that just show up dirt cheap. An example, a full 10x10 Gazebo that you assemble. Not with cheap like poles for full on L corners and netting. It was under $150 and just blows away stuff twice or more. The order of pricing in my area is Aldi So usually for us its Aldi when we are near for the basics, Wal Mart for some name brands, and old retail…

I spent ages ignoring the aisle of crap for being so cheap it clearly can't be any good. Then one year we found some sleeping bags for £10 or £12. Bought one and it turned out to be better made and designed than "proper" outdoor brands selling for £40 or £60. So went back for another before the offer switched. They're lasting much longer than the brands ever have too.

We've had some absurdly priced bargains in the years since.

Tesco and Asda (Walmart) have own-brands that cost more and are consistently simply crap, and to be avoided. So you learned to mostly avoid them, unless broke. Sure, Aldi do a few things badly, and a few things to avoid, but mostly they cured us of any remaining interest in preferring brand names over supermarket's own. So many brands got bought and became rubbish themselves anyway. The tiny few we do care for still, Aldi seem to stock.

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