Aldi vs Walmart: How Aldi Defeats America’s Biggest Supermarket

Operating a supermarket in America is getting more and more challenging.¬†Businesses are lining up to file a bankruptcy. And even America’s Biggest Supermarket is striving to keep its head above water.

So when Walmart’s CEO Greg Foran utters word of admiration to its competitor, we know for sure that the pressure is getting intense. He isn’t, however, referring to Amazon or any other large chains. He is talking about Aldi, whose presence in America has been extravagantly growing and stepping up the game in the industry along the way.

Aldi Is Reshaping The System In The Supermarkets

The first time experience of shopping at Aldi can be unfamiliar. With a quarter as a payment for renting a shopping cart, plastics and paper bags available for a fee, and customers bagging their own grocery, Aldi sure isn’t like any other supermarkets.

Aldi is Winning The Low-Pricing Game

Despite the oddity around Aldi’s practices, the company has built a cult-like following. The glamour is all in its low prices, which are so cheap that it defeats Walmart in the low-pricing game.

“I am willing to do extra work because the prices are amazing,” Diane Youngpeter, who operates a blog solely about the supermarket and manages an Aldi Facebook group with over 50,000 members, tells CNN.

The Aldi Way: How Aldi Holds The Low-Price Advantage

There’s no magic solution on how Aldi keeps its prices at a rock-bottom. It is simply a matter of cutting down expenses on shopping experience in a brutally efficient way.

Maintaining a low-cost business model prevents them from spending the income on shopping experience. Instead of employing baggers and runners, customers are expected to return their shopping carts after shopping. Upon returning, customers will get back the quarter they deposited to use the shopping cart.

Several grocery chains who have executed the same practice ended up abandoning them after at the request of annoyed customers. Aldi, on the other hand, is firm on sticking with this model and practices.

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