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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

#331

Earlier quoted context omitted.

Yep, that's the real reason. Introduced first in France and not by Aldi.

And yet... haven't you noticed that supermarkets in posher areas are less likely to have the coin slot? (Asda and Tesco are two whose policy varies by location). And in supermarkets with large car parks there are return stations all over the car park. Which means you still need to pay trolley herders...

I think the posh bit is slightly incidental, I think it's shops that people [can] walk to.

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

#332

Earlier quoted context omitted.

I never, ever carry change.

Why not? Cash is divisible, readily accepted, and anonymous.

Today for the first time in two months I went to a retailer that was cash only. I haven't carried my wallet with me for two months - I just leave it at home and use Apple Pay for literally everything, including public transport.

But then, I also don't shop at Aldi or need a trolley.

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

#333

Earlier quoted context omitted.

Yep. The most notable thing about Aldi (and similar competitor Lidl) from a UK perspective is that they pay above average for comparable supermarket jobs and reduce staffing accordingly. But I remember putting coins into slots for a trolley (and reclaiming them!) when I was young enough to be sitting in the child seat nearly 30 years ago, long before Aldi was a factor in the UK market. Is this really an innovative co…

Having somebody collect the trolleys creates a job, having somebody pack the groceries creates another job, just like having somebody do the refueling of your car at the gas station. They are not especially demanding or well-paying jobs, but the shift to service-driven economies isn't a new thing nor particularly exclusive to the US.

That's one of the biggest differences between the US and Sweden, and probably most of Europe; access to cheap labor. Too cheap, if you ask me. You could never employ somebody as a greeter here, or to pack your groceries, or to pump your gas, or other extremely menial and near useless jobs. Can people really support themselves on those, or are they forced to work multiple jobs?

It's actually becoming relevant here, because of our recent influx of largely unqualified people/immigrants. There aren't enough simple jobs that can be done without any education, and so politicians are discussing what to do about it. Personally I think it's a big step backwards to have people do extremely basic stuff as busy work. Most stores are removing manned checkouts and replacing them with self checkouts.

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

#334

Earlier quoted context omitted.

Same thing happens here, except there is always a loyalty card special on some items. If you want, say, a 12-pack of Vanilla Coke Zero, well, you have to buy three of them at once to avoid being reamed at the register. But you had better get there right after it's restocked, because it's always "Buy 2, get 1 free" or worse, "Buy 2, get 2 free," and they never stock more than three or four cartons at a time. Every tim…

I think they know exactly what they're doing. Those soda deals are usually loss leaders, i.e. the store takes a loss on every 12-pack they sell, but make it up in all of the other stuff you buy now that you're in the store. If they can get you to come into the store and not buy the soda, that's a great outcome. Of course, if that happens too often, you'll stop going, so it's a balance. They've probably figured out ho…

If they can get you to come into the store and not buy the soda, that's a great outcome.

No, that's a terrible outcome, because they have taught me to check the soda aisle first (and they have kindly put it near the front of the store where it's convenient to do so). If the shelf is empty, I just turn around and head for the competing grocery store down the street....

... which, of course, is owned by the same conglomerate. Grrr.

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

#335

Earlier quoted context omitted.

> -they combine varieties (like flavors of granola bars) of product in the same box. This greatly reduces the shelf space required. This is the only thing that fails about Aldi. Let's say you want their Chicken Tikka sauce. The mixed boxes mean good chance you won't see it as Tikka always goes first. You go through the whole 6 boxes of inventory, and yep, all sold - the three spaces in every box. Same for pizza - one…

This looks related to something that's mystified me for years about Safeway. Background: - Safeway rotates every product through "sale" and "full price" periods. It's a strictly calendar-based thing; every sale price is going to recur if you wait, and every product will spend a lot of time at "full price" and a lot of other time at two or three different "sale" prices. - Triscuits come in a variety of special flavors…

Nabisco is a DSD vendor. It's own sales associates and merchandisers are responsible for ordering and stocking the shelves. These people are on site (in-store) at most once per day (depending on the unit volume of the store and delivery schedules). Data gets funneled to the sales associate to make their own judgement calls about ordering (though they may be on auto-ordering depending on how close of a relationship the store/chain's snack category management has with Nabisco). High volume stores get 2-3 Nabisco orders in a week.

Sometimes there isn't great communication between sales reps and grocery/store management because of how little involvement is necessary on the store's end. As a manager at a full assortment grocer, unless you have a very specific interest in Nabisco, you may not even notice a SKU is out of stock. Reps will hide shelf tags, and increase other product facings to make it seem like they're fully stocked. Unless a customer brings it up to you, you may have no idea. From a data perspective, an out of stock issue is virtually indistinguishable from a slow-moving SKU as the granularity of sales data is usually only at the "day" level (and due to shrinkage, generated inventory counts are unreliable). So a large demand for parmesan garlic triscuits may not be evident for whoever is reviewing the data.

Also, your reasoning is a little flawed. Parmesan Garlic being out of stock does not necessarily indicate it is more popular than other flavors. It indicates simply that they ran out of their allotment, which (for big sales) is usually centrally planned according to production and previous sales figures. Your store could be in the midst of a negative feedback loop, where previous out-of-stock situations deflate sales figures and affect future allotments, which simply makes the parmesan garlic SKU go out of stock before other "more popular on-paper" flavors.

Another way to look at it is that the margin on triscuits is so low (and even lower when on sale), that caring too much about the extension SKUs is not worth the time/effort. As a rep, you'd mostly be worried about keeping the primary SKU in stock, occasionally juggling other stock from store to store when management gives you a hard time (if they even notice). As a grocery manager, you're probably oblivious if the vendor is actively trying to hide the problem.

Some brands that have an owner-operator type DSD model (where the reps actually work for themselves and own their own routes) are usually more conscientious and concerned with maintaining a full assortment. Ironically, they tend to not have as much frontline support as the corporate DSD behemoths (like Nabisco) so they have to work much harder to cover more stores (but at least they reap more of the benefits of their hard work, potentially). These are usually more regional or local products.

TL;DR Safeway probably doesn't care or doesn't know, Nabisco also probably doesn't care. Best way to deal with something like this is to submit something to Safeway corporate that a specific SKU (include the UPC) is always out during a sales period at a specific store (if you can find out the store number, even better). The most direct approach would be to find the Safeway snack category manager on LinkedIn and shoot him a message.

Source: Was a Grocery Manager for Wegmans for several years

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

#336
post #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 pack…

> 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

Scan speed is never a bottleneck of a checkout process. Packing and payment are. They might be saving millisecond on scan time, but the paper and printing of a label cost money too. Not sure if it’s the best showcase of efficiency here

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

It also makes people not want to go there if they don’t have spare change. And if they go without a cart, they will definitely spend less

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

#337
post #212

Earlier quoted context omitted.

In California you run the cart up a curb, leave it in an empty parking space, or maybe give it a gentle push and let it roam free. Corrals are depots for broken and rusted carts.

… /s. I really hate trying to turn into a spot that's flanked by two SUVs only to find a cart in the way. People are incredibly lazy. I love the ALDI's quarter scheme… it's just enough of a nudge to get people to do the decent thing.

I find that funny because we were taught growing up that leaving your cart out keeps the cart-collecting people employed, kind of like refusing to use the self-service checkout -- a different decent thing!

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

#338

Earlier quoted context omitted.

Same thing happens here, except there is always a loyalty card special on some items. If you want, say, a 12-pack of Vanilla Coke Zero, well, you have to buy three of them at once to avoid being reamed at the register. But you had better get there right after it's restocked, because it's always "Buy 2, get 1 free" or worse, "Buy 2, get 2 free," and they never stock more than three or four cartons at a time. Every tim…

Buy 2 get 3 free, must get all 5, is the best I've seen. And it's so stupid cheap you can't decline.

Exactly, and no one does. So the typical outcome is a shelf that sits empty for days at a time, annoying customers and earning $0 for either the store or the soft-drink distributor.

It's not just junk food, either -- they will cheerfully leave half their organic cereal aisle empty, waiting for restocked product that either never arrives or sells out instantly. This phenomenon is observable on timescales measured in weeks or even months.

It's possible that the cereal distributor is actually leasing that shelf space, of course... in which case the annoying situation is still caused by morons with money who aren't taking care of business.

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

#340

Earlier quoted context omitted.

> depositing a quarter for a cart eliminates the need to pay people to collect carts What's the alternative? Growing up in Germany I've literally never seen it any other way.

People leave there carts in the lots and workers collect them

In my experience, people leave their carts in the designated spot, mostly well nested. And a store clerk has to come out for about 5 minutes to bring them back every hour or so.

I don't feel like that amount of labor is a tremendous cost for the supermarket.

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