Live data from Hacker News

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

edition.cnn.com

461–470 of 653 posts

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

#461
post #291

Earlier quoted context omitted.

Tight margins and Apple don't belong in the same sentence

They do share an intense attention to detail though, Ikea is similar in many ways.

The attention to detail isn't always a good thing, though. Sometimes, they see the tree (wow, a thinner display cable) instead of the forest (this hinge has to flex thousands of times). Other times, they'll see a much thinner keyboard, but miss that debris could break the mechanism entirely. Even other times, they can forget to enable proper thermal controls or network drivers. Or, they can make sure your phone doesn't charge unless it wakes first. Bugger.

I mean, compared to $400 HPs or $200 Samsungs, there's definitely more attention to detail, but that isn't exactly a very fair comparison.

I'd argue that the whole consumer electronics industry is negligent, including Apple.

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

#462

Earlier quoted context omitted.

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…

Well, think about it. Safeway makes less money when the product is on sale. And people are used to the popular flavors selling out when the product goes on sale. (The exact same thing happens with ice cream, especially Ben and Jerrys). Safeway's job is to maximize profit, not maximize number of units sold at sale price.

Not true - when products go on sale the brand is giving the store a kickback per unit sold or a discount on the cost of goods. The store often makes more on sale items.

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

#463
post #413

Got a friend who is overseeing manager of about 5-6 Aldi supermarkets in my area. At the end of every day, every supermarket calls him with the daily results. He writes them down, takes a picture and sends that to his manager at the national HQ. He just uses his phone and the occasional meeting to do business, there is no computer/laptop or system on his end. Aldi is always portrayed as brutally efficient. So I was w…

I've seen plenty of corporates automate systems that don't warrant automation. Somehow development gains a momentum which nobody is able to stop. SAP sites seemed to be the worst for this.

Yes. When the org my sister worked at was trying and failing to automate vacation tracking, I was curious and asked some questions. As a software guy, I saw the frequent rules updates, hard to codify rules, increased effort to fix mistakes, smallish headcount, and expensive consultants... and said: This probably just does not make sense to automate.

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

#464

Earlier quoted context omitted.

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 ye…

Yours is a fascinating anecdote in the history of private labeling, which originated in the U.K. recession in the early 80’s wherein retailers began store brands to lower prices out of necessity to keep customer loyalty. Having spent the last 4 years in sourcing, I can say I am excited to try store brands because I know most of the time marquee brands are more expensive because of their unit cost of marketing. I stro…

I forgot that's what kicked store brands off in the first place.

> unit cost of marketing. I strongly speculate this is the main reason for Kraft Heinz’s struggles

Accidentally so revealing: Kraft have aimed a bullet carefully and precisely at themselves, Heinz are indistinguishable from Aldi and have nothing unique to offer but expense.

Asda and Tesco own brands were always how not to do it, or almost do it. Corn flakes that had the wrong texture or were somehow too thick or hard, always with the odd burnt one. Beans that had the wrong texture or were again too hard, bread somehow devoid of flavour and texture, biscuits that had as much grit as crunch. They weren't nice, they were for students and other times of being poverty stricken. Sainsbury's managed a bit better.

Own brand beans or sauce were easy and instant to distinguish - the taste was wrong, the texture was wrong, they tasted of cheap cafe and poverty, even as they got the sugar content as equally insane. I simply can't tell the difference between Aldi and Heinz at all, even the beans with sausages. Aldi beans are stupidly cheap - 25p a tin or something, and far cheaper than Tesco, Asda and Heinz up near £1 a tin. The sauce is as cheap. There is simply no point Heinz existing.

Kraft take over Cadbury's and immediately set about ruining it - closing the factory they promised to keep open, within weeks of takeover. Throwing away Green and Black's Fair Trade element. Changing Cadbury's recipe so it has that greasy cheap American choc texture and doesn't taste or feel like chocolate any more. Reducing sizes and proportion of chocolate in choc bars and snacks. Then lying that they did none of these - and being easily proved to be lying each time - usually with viral social media photographs. I think half the UK is boycotting them to one degree or another. The degree of UK resentment they have achieved is comical.

Aldi start to make chocolate that tastes as Cadbury used to. Just about perfectly. For 90p! While Kraft not-Cadbury-any-more charge nearly £2 for comparable size. I mostly prefer Aldi's "posher" choc, but every now and then I need that childhood Cadbury fix. That's now only available from Aldi and not at all from Kraft Mondolez's often Polish made, Cadbury-in-name-only. Go figure.

They don't always manage. They admitted defeat after years trying to match taste and texture of KitKat, their Swiss muesli is an inconsistent poor substitute. They have never done British tea very well. Of the few brands in Aldi and Lidl PG and Yorkshire tea were among the first.

As final example of completely missing the point, Tesco responded to Aldi and Lidl's runaway success in the UK by launching their own discounter "Jack's". Not by suddenly trying to match quality, but by taking a distinct step down from their own-label brands, and so arriving at impossibly cheap and nasty. They were immediately ridiculed by most of the media and panned for awful goods. How could they possibly think this was the Aldi/Lidl USP? They will fail hard.

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

#465
post #432

Earlier quoted context omitted.

When Lidl came to Sweden most people didn't like to shop there because of their short conveyor belts after the cashier [0] relative to the regular Swedish ones [1][2], so you felt stressed when shopping there. There were no room for your groceries. Usually you put your stuff on the belt, the cashier scans it and moves it along, you pay, and then you pack it in your bags. It took them four years, then they changed to…

Hej! What is the clear wall between the lanes for?

My guess is it reduces the space needed behind the cashier's back.

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

#466
post #432

Earlier quoted context omitted.

Hej! What is the clear wall between the lanes for?

My guess is it reduces the space needed behind the cashier's back.

And/or security, so someone can't reach into the till when the cashier is preparing change.

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

#467

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…

I think the concept just doesn't work as well in the US. Parking lots are larger than in Europe. You'd need a guy to move the carts from satellite collections points back to the store anyway.

That’s the same in Europe, there will be a collection point every 50m or so, then they drive round with carts to trail them back to base. I don’t necessarily agree with you for parking lot size, some of the hypermarkets here in France are huge

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

#468

Earlier quoted context omitted.

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, be…

> 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. Well, not full time. Some German grocers have started to employ very young people during Fridays and Saturdays as packers. They look young enough to be still in school, also collect tips with little boxes, but they are not full-time employees but rather "mini-jobbers".…

That's odd. In the UK and Denmark, you get youths who look about 16 working in supermarkets, doing the normal tasks: restocking and tidying the shelves, running a checkout. They certainly don't get tips!

The more expensive shops employ more youths, I think the budget stores don't use enough staff to have an older person nearby if the teen is stuck somehow.

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

#469

Earlier quoted context omitted.

TIL you can call American stores. Why do people do that?

call and ask if they have a rare produce item in stock like Rhubarb or something..

Wait what, not only is there someone to call in US stores, but also rhubarb is considered rare?!

This whole thread is just a constant TIL/am-I-taking-crazy-pills moment :)

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

#470

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…

The only "innovation" with the trolleys is that USA used to be a wealthy enough country that it was OK to pay cart collectors. It's not a stupidity thing, it's a poverty thing.

I would actually say it’s a sign of income inequality. There is that much of a wage gap that your customers are basically paying someone to return their shipping trolley. Apparently this business model works in the USA, Im sure it would work in India or China, but definitely not in France or Sweden
Post reply on HN