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Aldi's Barcode Strategy

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Re: Aldi's Barcode Strategy

#91

Visited Aldi and Lidl in Germany and I am sorry but I can't help hating those stores. It all looks so cheap and barebones that I get depressed just being there. And then the whole experience with the cashier is hyper stressful and they are so blinding fast at scanning the groceries. It is like you are subject to some German Blitzkrieg or something. Interesting with the article that they explained why it was so fast.…

There are other more "western" grocery stores in Germany, like Edeka and Rewe. These are also self-pack, but there's room at the end to do it comfortably.

Re: Aldi's Barcode Strategy

#92
post #32
post #30

I noticed at line in Costco the cashier's assistant rearranged by stuff on the belt to have the barcodes facing up and in the same direction. Costco could probably save some money by putting barcodes on every side of everything.

> Costco could probably save some money by putting barcodes on every side of everything. That's easier said than done because Costco doesn't sell only private label items like Aldi.

They have their own Item Number system. Even general-retailer items sold elsewhere often have the (Costco) Item Number on their packaging.

Re: Aldi's Barcode Strategy

#93

Earlier quoted context omitted.

Also the shopping cards have a small chain that attaches to the cart in front of it. You unlock the cart by sliding in a quarter so you can use it while shopping. Since people want their quarter back they have to return the cart to the store. Great solution to eliminate a bag boy sweeping up carts from the lot all day IMO. Also way back when ALDI didn't even have barcode scanners to save money. There was a person typ…

> Also the shopping cards have a small chain that attaches to the cart in front of it. Wait, there are supermarkets that don't have that? How does it work? Do people just leave the shopping carts standing around on the parking lot? Not cynical, geniunely wondering how that works. Anyway, afaik virtually all supermarkets in Europe have that system. I'm pretty sure Aldi didn't invent it.

In the UK, it's not the case. Most have carts that have no such feature, though a good proportion do. From my own anecdotal experience living in less desirable areas, the use of the coin system tends to be in areas that would be more likely to have carts taken/stolen.

Re: Aldi's Barcode Strategy

#94

Earlier quoted context omitted.

Reads like culture shock to me. I am not dismissing your concerns, but I've had the opposite issues going to the US where everyone is super chatty, seemingly needy, and slow. You go into a store and they yell at you "DO YOU NEED SOMETHING" uhh, no, I'm sorry I came in to look around, is that a crime? The waiting staff return to your table every 30 seconds, and the cashiers are more interested in your life story than…

This made me laugh, you'll get used to it and start to enjoy it eventually. It seems like things are more relaxed wherever you are in the us compared to wherever you were previously. When it comes to the "Do you need something," it's part of their job, if you're looking for something specific it's good to know that there are people available to help you. They're not asking you if you have a reason to be in the store,…

Sure, it's their job but some people simply appreciate being left alone and unsolicited offers just come off as pushy.

Your parent comment is right: it's culture shock. As a German I can't stand the idea of having to shop in American supermarkets. And it's likely no accident that WalMart failed to get a foot into the German market -- not just because of their blatant disregard for German labour laws (which are more worker-friendly than in the US).

Re: Aldi's Barcode Strategy

#95
post #40

Off topic, but private labels are in many ways reminiscent of the state-controlled labels in former communist countries.

Interesting, is that a common connotation? I grew up with Aldi and Lidl in Germany and I've never made that association, but I suppose I can see why you might if you're used to branded products.

Well, I can see how drinking some Ja![0] branded beer after eating some Ja! branded crisps feels a bit like drinking BEER branded beer and CRISPS branded crisps...

But luckily Aldi and Lidl generally have less bland packaging than that. ;)

[0]: http://www.freshcom.de/wordpress/wp-content/uploads/2011/08/...

Re: Aldi's Barcode Strategy

#96
post #38

Earlier quoted context omitted.

They also get rid of a lot of "frills" that other grocery stores are accustomed to performing that add to cost e.g. items are still in their transport cardboard boxes on the shelves so employees spend less time stocking shelves, they allow people to take these cardboard boxes home instead of shopping bags and this reduces waste cost. They dramatically reduce their range which cuts inventory storage. You'll never seem…

Also the shopping cards have a small chain that attaches to the cart in front of it. You unlock the cart by sliding in a quarter so you can use it while shopping. Since people want their quarter back they have to return the cart to the store. Great solution to eliminate a bag boy sweeping up carts from the lot all day IMO. Also way back when ALDI didn't even have barcode scanners to save money. There was a person typ…

I would hypothesize in the US at least that a large percentage of shoppers would still abandon carts at random, but that enterprising teens / homeless people might step in to collect the deposits, so the store could still avoid needing to assign an employee to do it. That said, I rarely have any coins, so needing have a quarter to take out a cart would be fairly annoying.

Re: Aldi's Barcode Strategy

#97
I wonder why a large retailer like Walmart doesn't start incentivizing their suppliers to do this as well?

Some math.

-Assume a fixed 120 customers an hour

-Assume each customer buys 20 items

-1 minute for customer to pay + 1 minute total scanning time for all items = 30 customers / cashier / hour (4 cashiers needed)

-Assuming additional barcodes double the scanning time (seems reasonable to me from my experiences at Aldi):

-1 minute for customer to pay + 30 seconds scanning time = 40 customers / cashier / hour (3 cashiers needed)

Savings of $12 an hour ($8/hr + taxes, training, insurance, etc)

120 customers * 20 items per customer = 2400 items total in the hour

$12 savings / 2400 items = $0.005 per item savings

Obviously the assumptions were a bit simplistic, but couldn't Walmart offer their suppliers, say 10% of the estimated savings, $0.0005, per item to add a few more barcodes?

Re: Aldi's Barcode Strategy

#98
post #32
post #30

I noticed at line in Costco the cashier's assistant rearranged by stuff on the belt to have the barcodes facing up and in the same direction. Costco could probably save some money by putting barcodes on every side of everything.

> Costco could probably save some money by putting barcodes on every side of everything. That's easier said than done because Costco doesn't sell only private label items like Aldi.

Costco could just print their own and add it to the packaging.

Re: Aldi's Barcode Strategy

#99
post #98
post #32

Earlier quoted context omitted.

> Costco could probably save some money by putting barcodes on every side of everything. That's easier said than done because Costco doesn't sell only private label items like Aldi.

Costco could just print their own and add it to the packaging.

I'm not sure that the time needed to affix the label to every product is less than the saved time due to faster scanning.

Re: Aldi's Barcode Strategy

#100

Earlier quoted context omitted.

The reason why there is so little space is because there are supposed to be baggers. I guess they finally got rid of them to save money.

I dont think this is true. In Germany there never has been a 'bagger-culture' :)

They are so small, so that you just pass through the items into your shopping cart. Basically you don't have much of an option. If you shop without a shopping cart (like me buying just a few things that fit into my bagpack) the cassier might suggest that I take a cart next time.

Then there is this side-board across the checkout that you can use to bag your purchase.

What you also see a lot in Germany is people taking empty cardboard boxes from the shelves and use them instead of bags at the checkout. It is quick and convenient.

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