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That’s why this discount is so successful in America

That’s why this discount is so successful in America

For three years, no grocer in the U.S. has grown faster than Aldi. This also relates to the German shopping experience.

When it comes to shopping, there’s no way around Aldi in America these days. The German discount chain, with its low prices, is the fastest-growing grocer in the country for the third year in a row, according to real estate firm JLL.

Low prices bring customers to stores

Aldi’s growth may be related to the low prices the company offers. Food prices in the U.S. rose an average of 12 percent last year, Business Insider reported, citing figures from the U.S. Bureau of Labor Statistics. Aldi, on the other hand, manages to offer consistently cheaper prices than the competition, the company writes. Reuters reported in September 2022 that prices, especially for fruits and vegetables, are 20 to 40 percent lower than other supermarket chains.

These low prices are possible because the discounter specializes in selling its own brands. These account for 90 percent of all items sold, a significantly larger percentage than rival Walmart or Costco, according to consumer data firm Numerator. Aldi is able to offer its own brands more cheaply because there are no hidden costs for advertising and marketing, the company writes on its website.

“Aldi Finds” make up a fifth of sales

Smaller store sizes, fewer employees, and reduced customer service compared to other U.S. supermarket chains also benefit Aldi’s sales in the U.S. Ultimately, though, it’s the low prices that drive customers to Aldi branches, writes Business Insider. So Aldi can continue to grow in the US in the coming years.