Aldi Openings Delayed?

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arizonaguy
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Re: Aldi Openings Delayed?

Post by arizonaguy »

I don't understand the appeal of Aldi at all, living in Arizona.

They have a handful of unique items and their general merchandise mix of Aldi finds is somewhat interesting but that's about it.

I don't understand their strange mix of private label and name brand merchandise (for some sizes of a certain category it's all private label for others it's all name brand). Their name brand prices aren't all that great. The rest of their pricing seems pretty similar to conventional supermarkets, Target, Walmart and WinCo.

If I want a whole basket discount experience, I'd just prefer to shop at WinCo. The only knock on WinCo is their lack of credit cards. Otherwise the massive selection at Winco of every conceivable item I need dwarfs the dart throw as to whether or not Aldi has what I'm looking for and if it does whether or not the private label is decent.

I'm not sold on Aldi's private label either (I've had several items that all seem rather subpar compared to name brands, an experience I've never had with Trader Joe's).

If I'm going for a private label curated experience that may / may not have what I'm looking for, in my opinion, I'd rather go for Trader Joe's.
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Re: Aldi Openings Delayed?

Post by storewanderer »

I think over the past 20 years Aldi has successfully evolved.

Aldi used to be the hard discounter who secretly had high quality products at bottom barrel prices. The store didn't try to be nice, packages didn't try to look cool, marketing was word of mouth, and slowly the reputation built. Perishables were limited enough it was a matter of pile it and watch it sell. Not much to do on rotation or cleaning. Sort of like Costco but a completely different format. The employees in Aldi Stores were few but very hardworking, efficient, and ran a tight ship.

Then there is the modern Aldi. As it is expanded, it has started to market itself more. Slogans such as "twice as nice" and other gimmicks. It has tried to make items look more "neat." It has tried to make its stores look more pretty. It has more labor intensive programs for perishables in its stores. The employees out in CA Aldi are argumentative, provide poor customer service, and sloppy. They are even worse than Albertsons/Vons/Ralphs employees who also seem miserable.

There seem to be an unusual number of influencer type bloggers, Youtubers, etc. marketing Aldi "hauls" and I am suspicious some of they may be paid by Aldi for their services. That is not uncommon but that is not something old Aldi of 20 years ago would have done.

My experience with Aldi private labels in recent years has been satisfactory. Not excellent or outstanding. But I think Kroger has a better mix of private labels at the same or better prices.
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Re: Aldi Openings Delayed?

Post by mbz321 »

storewanderer wrote: November 2nd, 2022, 6:25 pm
There seem to be an unusual number of influencer type bloggers, Youtubers, etc. marketing Aldi "hauls" and I am suspicious some of they may be paid by Aldi for their services. That is not uncommon but that is not something old Aldi of 20 years ago would have done.
Funny you mentioned this as there was a very popular group/Page on Facebook called the TheAldiNerd (page has since gone dark/no new postings since sometime in 2021 the last time I checked). You would never find any post or comment from members criticizing Aldi in the slightest. It was later discovered by several users to really have been ran/moderated by a marketing firm.

As a cheapskate, Aldi has generally still been my #1 choice when I have to make a big shopping trip. Although I think they might have expanded faster than they can handle, supply-chain wise, or with the downturn in the economy, stores are busier than ever leading to a lot of out of stocks.
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Re: Aldi Openings Delayed?

Post by Bagels »

mbz321 wrote: November 2nd, 2022, 9:21 pm
storewanderer wrote: November 2nd, 2022, 6:25 pm
There seem to be an unusual number of influencer type bloggers, Youtubers, etc. marketing Aldi "hauls" and I am suspicious some of they may be paid by Aldi for their services. That is not uncommon but that is not something old Aldi of 20 years ago would have done.
Funny you mentioned this as there was a very popular group/Page on Facebook called the TheAldiNerd (page has since gone dark/no new postings since sometime in 2021 the last time I checked). You would never find any post or comment from members criticizing Aldi in the slightest. It was later discovered by several users to really have been ran/moderated by a marketing firm.
Pretty sure that’s just a myth. I grew up with the person who started The Aldi Nerd and while we were never close friends we have mutual acquaintances and they tell me she’s a home maker. Looking at public records, she started a company called The Aldi Nerd LLC in December 2019, shortly before the website went dark. Running various social media took a lot of time and the media was treating her as an unofficial spokeswoman. My bet is that she tried to monetize her effort, was turned away by Aldi, and walked away from her role.
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Re: Aldi Openings Delayed?

Post by storewanderer »

Out of stocks should be rare in Aldi with how they stock their items.

I think they may be becoming over-SKUed. Trying to be too many things to too many people and hoping something sticks in these expansion regions.

I'd like to see them move up into NorCal. I think that may have been more interesting than AZ. Not sure if they are scared of Grocery Outlet or what. I know it is not unusual for midwest businesses to show up in AZ due to the migration and retirees and snowbirds but AZ really has a lot of good options already and discount or limited assortment formats have a tract record of failure there (WinCo not doing great, Smart and Final not doing great, Fresh & Easy did worse in AZ than it did elsewhere, Grocery Outlet long gone, Food 4 Less long gone, etc.).
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Re: Aldi Openings Delayed?

Post by Romr123 »

I think you make a good point--Chicago transplants to Arizona are unaccustomed to 2-3 perfectly serviceable grocery alternatives (at home it's Jewel, plus ___). Aldi may well have seen the growth in AZ as attractive, but like you say, just isn't a fit for the metro driving past 2-3 separate good alternatives (a Frys, a Safebertsons, possibly a WM) particularly when the "shuttling the kids around Chicagoland" days are over.

Also agreed that they're a bit over-SKUed--seems like, for example for liquid salad dressing: they have the basic french/italian/1000 island; then the deluxe version of 2 of those, then the organic version of 2 others, then perhaps a limited time offering of a couple flavors.
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Re: Aldi Openings Delayed?

Post by BillyGr »

arizonaguy wrote: November 2nd, 2022, 3:22 pm I don't understand the appeal of Aldi at all, living in Arizona.

They have a handful of unique items and their general merchandise mix of Aldi finds is somewhat interesting but that's about it.

I don't understand their strange mix of private label and name brand merchandise (for some sizes of a certain category it's all private label for others it's all name brand). Their name brand prices aren't all that great. The rest of their pricing seems pretty similar to conventional supermarkets, Target, Walmart and WinCo.

If I want a whole basket discount experience, I'd just prefer to shop at WinCo. The only knock on WinCo is their lack of credit cards. Otherwise the massive selection at Winco of every conceivable item I need dwarfs the dart throw as to whether or not Aldi has what I'm looking for and if it does whether or not the private label is decent.

I'm not sold on Aldi's private label either (I've had several items that all seem rather subpar compared to name brands, an experience I've never had with Trader Joe's).

If I'm going for a private label curated experience that may / may not have what I'm looking for, in my opinion, I'd rather go for Trader Joe's.
Once again, you have to remember that many other areas do NOT have similar options like what you mention, thus Aldi is the only choice in that format. Even something like Trader Joe (for instance) has one store in this area, while there are numerous Aldi stores that are closer to the majority of shoppers than that one TJ location.

They started out as all their own brand items, with occasional name brands when they were able to get a good deal on something. Still more their own stuff, but perhaps they are adding more name brands in some spots.
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Re: Aldi Openings Delayed?

Post by Bagels »

BillyGr wrote: November 3rd, 2022, 12:47 pmOnce again, you have to remember that many other areas do NOT have similar options like what you mention, thus Aldi is the only choice in that format. Even something like Trader Joe (for instance) has one store in this area, while there are numerous Aldi stores that are closer to the majority of shoppers than that one TJ location.

They started out as all their own brand items, with occasional name brands when they were able to get a good deal on something. Still more their own stuff, but perhaps they are adding more name brands in some spots.
Aldi certainly places downward pressure on pricing -- when they first entered SoCal, Walmart slashed prices on many items (e.g. canned vegetables, yogurt cups, etc.), for example. My comments were that it's evolved into a "mini" traditional grocery store - with attractive interior and exteriors, a wide variety of products, plenty of name brands, and even credit card acceptance (until sometime in the 2010s, only cash was accepted although some regions took debit cards). My examples are that it includes a solid produce selection, whereas previously it included only seasonal produce (there was very little selection in the winter months). And you use to get your choice of white or wheat bread, and some frozen baked goods. Today, there's multiple varieties of bread and tons of baked goods - of course, this adds to shrink. This model is much more expensive to operate - although probably far more popular - and ultimately, the savings are far less than previously were.

Aldi is an EDLP retailer, with some promotional items - just like Walmart. Traditional supermarkets used a promotional, high-low system that largely depends on volume for fluctuations. Kroger is a hybrid - it cut back on promotions to fund EDLP. Albertsons/Safeway still use a high-low system. If you're a savvy shopper, the high-low system can work to your advantage. But this generally requires you to buy in bulk when items are low - not something every family can afford, or have the space for. It's also less effective if you aren't flexible. Thus, what works for me might not work for you.
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Re: Aldi Openings Delayed?

Post by storewanderer »

Aldi just isn't the deal it once was. They seem to be going after a different customer now. Perhaps the Target customer. They seem to be working more on trying to make people feel good about shopping there, vs. people shopping there due to wanting the best deal or needing to shop there for budget purposes.
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Re: Aldi Openings Delayed?

Post by ClownLoach »

storewanderer wrote: November 3rd, 2022, 11:54 pm Aldi just isn't the deal it once was. They seem to be going after a different customer now. Perhaps the Target customer. They seem to be working more on trying to make people feel good about shopping there, vs. people shopping there due to wanting the best deal or needing to shop there for budget purposes.
I wonder how much inflation is hurting them as well when it comes to the brand name products. They do not seem to have any real "deals" on brand name items and less "deals" like the previously mentioned 99 cent eggs. It seems like they carry brand names in SoCal as "customer education displays" where they can take an endcap, make the left half Tide priced at full suggested retail, and the right half the Aldi discount house brand detergent. But now they're paying more to buy that Tide they don't even sell much of and having to spread the cost increases out around the store. They've been trying too hard to duplicate the classic displays Target sets up in the seasonal area between holidays where they'll use existing inventory to make a few aisles of side by side displays showing brand name vs Target brand so the customer can see the savings. Target can easily do this because they have the relationships and the inventory; how much is Aldi paying to get these brand name products where the big vendor probably doesn't see them as a positive contributor for their brands? I would imagine that their margins on the brand name items are very bad and probably worsening daily. They continue to pursue low quality real estate that is off the beaten path for most of their locations, but don't really give the customer enough reason to make a special trip to their store. They need to find a new way to price, merchandise, and brand themselves in SoCal.
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