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Headquarters
1200 N. Kirk Rd, Batavia, 60510, Illinois, USA -
Annual Global Sales
$2,800,000,000
Total U.S. Sales
$124.25 billion worldwide sales and $40.21 billion U.S. sales in 2022, according to the National Retail Federation
Total U.S. Stores
More than 2,300 U.S. stores across 38 states and Washington, D.C. (as of January 2024)
Shopper Count
More than 40 million monthly shoppers
Key Facts
- 90% of products sold are ALDI exclusive brands
- U.S. store count increased to more than 2,300 by the end of 2023
- In August 2023, entered into an agreement to acquire Southeastern Grocers and approximately 400 Winn-Dixie and Harveys Supermarket stores, a deal which was completed in early 2024
- Ranked third best discount supermarket in Newsweek’s 2022 list of America’s Best Retailers
- Aldi stores in the U.S. are part of Aldi Sud (not to be confused with Aldi Nord, which operates Trade Joe’s)
- Ranked 12th in Dunnhumby's 2022 Retail Preference Index
Key Executives
- U.S. CEO: Jason Hart
- U.S. VP of National Buying: Scott Patton
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Collaborative Alliances
- Displays & Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing Strategy
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Marketing Expenditures
Market Position and Strategy Overview
Must-Know Terms
Must-Know Terms
- Aldi Finds: Premium food and household products that are only available in stores for a limited time. Aldi Finds tend to be exclusive and private label items, but SKUs from brands such as Hallmark Cards' Crayola have also been included.
- Aldi Double Guarantee: If a shopper is not 100% satisfied with a product, the store will replace the item and provide a full refund.
- Aldi Insider: Weekly circular that previews “Aldi Finds” and other specials for the upcoming week.
Promotional Strategy
Promotional Strategy
Aldi employs an everyday low price (EDLP) approach, eschewing what Aldi U.S. CEO Jason Hart calls “yo-yo discounts, sales, [and] coupons.” However, the retailer does create excitement by spotlight “Aldi Finds” in circulars and affixing blue shelf signs next to items that are "New at Aldi."
The retailer continuously monitors consumer trends, dietary needs and changing food preferences, enabling it swiftly turn a concept into a product. Its close relationship with its supplier network also allows it to slash costs throughout the supply chain and bring the savings to its customers.
In response to inflation driving up prices, the retailer has instituted some measures to lower costs for shoppers. In 2022, the retailer introduced Thanksgiving Price Rewind, where it lowered the prices of many seasonal items to what they were in 2019. For Thanksgiving 2023, it encouraged customers to "Save More, Seat More" with discounted prices on more than 70 holiday favorites.
Ongoing Programs
- ALDI Finds: The program spotlights premium food and household products that are only in stores for a limited time.
- Aldi "Fan Favorite": Aldi surveys shoppers to determine and rank its "most loved" private brand SKUs. In stores, price signs spotlight the items with "fan favorite" and "most loved" messages within a heart-shaped outline.
- Aldi Savers: Items that receive this designation within Aldi's circular and in stores are low priced and deeply discounted.
Merchandising
Merchandising Strategy
Since opening its first store in Iowa in 1976, Aldi U.S. has been guided by the same principle: "Great quality shouldn’t come at a high price; rather, great quality should come with everyday low prices."
Aldi carries far fewer products than a typical supermarket — 1,300 items versus 30,000 — so stores are smaller (about 12,000 square feet) and cheaper to operate. The typical store has only five aisles with a perimeter wall, stocking baked goods, wine and beer as well as refrigerated sections for dairy, cheese and produce.
The center of the store stocks non-perishable food items, produce (for items that don’t require refrigeration), packaged household items, beverages and personal care SKUs. A dedicated aisle is typically devoted to Aldi Finds, ranging from hardware tools to small playground slides as well as seasonal products for holidays. The unique weekly rotation of curious edible and non-edible products available while supplies last has been given the unofficial name “Aisle of Shame” by Facebook group Aisle of Shame. (Aldi has no affiliation with this Facebook group.) Aldi tests new products in this aisle to gauge their popularity, and big ticket, inedible items often receive the most consumer attention due to deep discounting.
Collaborative Alliances
Collaborative Alliances
Considering 90% of its SKUs are private label, Aldi rarely works with vendors to create exclusive or one-off programs.
Aldi maintains a supplier hub at corporate.aldi.us/en/suppliers that hosts information on becoming a supplier, the retailer's corporate responsibility principles and product information forms for current vendors.
Displays & Signage
Displays & Signage
Aldi primarily stocks SKUs on shelf trays to save on cost. It rarely accepts vendor-supplied P-O-P materials, but some do sneak in to select stores.
Aldi's no-frills approach to grocery can make it difficult for a single brand or product to stand out. However, the retailer has experimented with leveraging price labels and ceiling signs to spotlight new products.
In-Store Media
In-Store Media
Aldi does not appear to accept third-party in-store media.
Store Formats/Growth
Store Formats/Growth
Aldi is in the midst of an accelerated growth plan, investing more than $9 billion to remodel its existing stores and expand its U.S. store count. In 2022, the retailer opened and remodeled 139 stores, and added 109 new stores in 2023, more than any other grocery chain. As of January 2024, the retailer had 2,356 locations.
In 2024, the retailer shared plans to add 800 stores nationwide by the end of 2028, through a combination of expanding its Midwestern and Northeastern footprints, converting Winn-Dixie and Harveys Supermarket stores to Aldi formats (see below), or building new stores, particularly in Southern California and the Phoenix markets as well as new-to-Aldi areas such as Las Vegas.
Remodeled stores place a larger focus on fresh items through more robust produce, dairy and bakery sections and additional refrigeration space to accommodate even more fresh, healthy and convenient products. The stores also boast a more modern design, open ceilings, natural lighting and environmentally friendly building materials including recycled materials, energy-saving refrigeration, rooftop solar panels, and LED lighting.
Aldi also has entered into an agreement to acquire approximately 400 Winn-Dixie and Harveys Supermarket stores in Alabama, Georgia, Louisiana, Mississippi and Florida from Southeastern Grocers. Many locations will be converted to Aldi banners, starting with 50 stores scheduled to be remodeled beginning in the second half of 2024 and then reopening as Aldis in 2025. Others will continue operating as Winn-Dixie and Harveys.
Self-Checkout
Aldi has been piloting self-checkout machines both in the U.S. and the U.K. While the discount retailer hasn't rolled out a timeline on the feature, its official X (formerly Twitter) account responded to a customer's request to install me self-checkout machines with: "While we can't confirm if your store will receive self-checkout, Aldi is rolling out the offing to new stores every week."
Aldi is also dipping its toes into cashierless checkout. It launched its first till-free store in the U.K. in 2022, under the Shop&Go format. Customers download the Aldi Shop&Go app, which syncs with sensors to read the contents of a shopper's cart and rings them up as they exit.
In early 2024, Aldi launched AldiGo, its first fully automated checkout system in Aurora, Illinois. The system uses cameras and sensors in conjunction with a mobile app from tech company Grabango to track customers' carts as they shop.
Special Departments/Services
Special Departments/Services
Aldi does not appear to have any special departments or services.
Customer Segments
Customer Segments
In the past, the typical Aldi customer was considered a female over the age of 60 with less than $140 in monthly discretionary income. Recently, however, Aldi has been implementing changes that some say aim to attract health-conscious young customers. For example, as part of its accelerated growth plan, the supermarket chain is bringing more fresh, organic, and easy-to-prepare options to its 2,300-some stores across the country. The supermarket chain’s new offerings include private-label products such as trendy kombucha, veggie noodles, organic meats, kale, quinoa burgers, keto-friendly and gluten-free bakery options.
In 2024, P2PI sister publication Chain Store Age shared Placer.ai's findings about Aldi customers: "The median household income (HHI) in Aldi’s trade area ($68.1K) was slightly lower than the nationwide median, with the median HHI ($69.5K) in the chain’s captured market even lower than the median HHI in its potential market. This shows that Aldi locates its stores in areas that are accessible to the average consumer while succeeding in attracting also the slightly lower income consumers within its potential trade area." Placer.ai also found that Aldi tends to draw more blue-collar customers.
Internet Marketing Strategy
Internet Marketing Strategy
Aldi is transforming its information-only U.S. website into a fully transactional e-commerce in conjunction with standing up in-house fulfillment services. (See E-Commerce.)
Working with e-commerce specialist Spryker Systems, in September 2023 the retailer launched a new website allowing shoppers to purchase directly from the retailer, for both delivery and curbside pickup options. Prior to that Aldi worked with Instacart to power its omnichannel presence.
The grocer's current digital efforts are almost entirely devoted to promoting its private-label products.
On Aldi.us, home page carousel and display ads regularly tout the retailer’s private label SKUs and Aldi Finds. Most ads link to the “Weekly Ads” page within the retailer’s website to browse either the current circular or the “Aldi Insider” circular, which spotlights sales for the upcoming week.
Aldi’s website in the U.S. also lets users:
- locate a store,
- browse pages devoted to select private label brands,
- search recipes,
- obtain information regarding product recalls, and
- sign up for Aldi’s weekly email, which also focuses on private label items and directs users to the retailer’s circulars.
Shoppers can also use the site to create a digital shopping list to email or print. Users can add any item found within the retailer’s digital circulars to their list.
Elsewhere online, display ads spotlight private label SKUs and/or direct users to Aldi.us.
Mobile Marketing
Mobile Marketing Strategy
Aldi has a very basic mobile application for Android and Apple devices. Containing no images, the application’s “Featured” home page directs shoppers to several basic sections within the app, to:
- browse the retailer’s weekly circulars,
- peruse Aldi Finds for the current and upcoming week,
- obtain a list of SKUs new at Aldi, and
- access the app’s QR Code Reader to scan codes in stores or inside weekly circulars for more information on products.
Shoppers can also opt for grocery delivery and curbside service on the app; clicking that option redirects them to Instacart, where they can complete their purchase.
The app also lets shoppers find the nearest Aldi store, sign up for Aldi’s weekly email, check a store gift card balance and create a mobile shopping list.
Social Media
Social Media Strategy
Facebook: 3 million followers (as of October 2023)
Aldi posts almost daily on its Aldi USA Facebook page. Typical posts spotlight private label SKUs and link to either the weekly circular or Aldi Finds page, or share articles from blogs or news outlets about the retailer.
X, formerly known as Twitter: 108.4K followers (as of October 2023)
Aldi posts several times in a week, highlighting deals or new products. Posts also reinforce Aldi love or appeal to Aldi fans. One example: "Adulting 101: Always keep a quarter in the car ... just in case."
Pinterest: More than 10 million monthly viewers; 78K followers (as of October 2023)
Aldi encourages users to follow its Pinterest posts and boards for recipes, tips and inspiration. Recipes typically link to the retailer's website or to sponsored content from blogs such as "A Cozy Kitchen." Boards include "Blogger Recipes We Crave," "Breakfast and Brunch Recipes," and "Easy & Healthy Recipes."
Instagram: 969K followers (as of October 2023)
The retailer posts images a few times a week to plug SKUs from Aldi private labels and, occasionally, national brands. The account works to tout Aldi Finds and seasonal products, and inspire shoppers. Content tends to mirror Facebook's.
YouTube: 49.4K followers (as of October 2023)
The retailer posts videos a couple times a month. Posts focus on recipes and new finds as well as seasonal suggestions. The retailer aims to inject a bit of humor into some of its videos, having shoppers try to guess the contents of a mystery box (full of Aldi products) by touch, or Jacob Fernsby plays tour guide for Aldi initiatives like its "green evolution."
TikTok: 200.5K followers (as of October 2023)
The retailer posts short videos regularly, typically highlighting new finds, seasonal suggestions, shopper activity, hauls and more.
E-Commerce
E-Commerce Strategy
Aldi is diversifying its third-party fulfillment partners even as it works with technology company Spryker to stand up its own pickup and delivery platform.
The grocer first began offering online grocery delivery in select U.S. cities in 2017 through a partnership with Instacart, a service now available through more than 95% of Aldi's 2,000-plus stores. In 2019, wine and beer from the retailer became eligible for Instacart delivery nationwide, where permitted by state and local laws. Instacart additionally powers curbside grocery pickup, which delivers from more than 2,200 Aldi stores.
Aldi also accepts SNAP online payments via Instacart and DoorDash.
In 2023, Aldi deepened its partnership with Instacart to launch Aldi Express, which provides 30-minute delivery of nearly 2,000 items from more than 2,100 Aldi locations.
In 2023, Aldi contracted DoorDash to also provide delivery service from select locations. DoorDash also provides on-demand alcohol delivery from some Aldi stores. In 2024, Aldi partnered with DoorDash on a promotion. Shoppers who buy Aldi meat or seafood through the platform get a chance to have it prepared and grilled by a local grillmaster. Using a promo code also gets them $5 off their cart.
In 2022, Aldi began developing its own online grocery platform with German e-commerce technology company Spryker Systems. The in-house solution aims to ultimately offer curbside pickup and delivery service in 60 minutes or less across the chain's U.S. footprint.
Circulars
Circulars and Publications
Aldi’s weekly circular drops Wednesday and is typically four pages in length. Features are primarily devoted to the retailer’s private label SKUs and limited-time “Aldi Finds.” (See “Must-Know Terms.”)
The retailer also publishes a concurrent circular called “Aldi Insider,” which gives shoppers a sneak peek of the next week’s upcoming deals. Averaging four pages in length, Aldi Insider primarily touts Aldi Finds.
Loyalty Programs
Loyalty Programs
Aldi does not operate a loyalty program.
In April 2024 it jokingly unveiled Aldi+, a spoof membership program, stressing that it cost nothing and included everyone. On day 1, the grocer teased Aldi+ had 331.9 million members, or the equivalent of the U.S. population.
Private Label
Private Label
More than 90% of product in an Aldi store is private label. The grocer works with suppliers to develop and market store-branded products, often at a lower cost and a faster pace than nationally branded products. (Aldi’s Earth Grown kale veggie burger, for example, took nine months to go from concept to shelves.)
By carrying mostly private label SKUs, Aldi can provide shoppers with “the same high-quality product without passing on all of the hidden costs associated with the national brands, such as marketing and advertising,” according to its website’s FAQ page. The retailer also claims that switching from national brands to Aldi private label items can save shoppers up to 50% on their weekly must-have items.
Aldi’s private-label brands include:
- Bake Shop: desserts and baked goods
- Barissimo: coffee products
- California Heritage: wines
- Crofton: kitchenware
- Earth Grown: frozen SKUs that are free from animal products, including meat, poultry and seafood. The line’s vegan items are also free from substances produced by animals such as eggs, dairy, honey, gelatin and lanolin
- Elevation: better-for-you bars and protein powders
- Emporium Selection: cheeses
- Fit & Active: calorie- and diet-minded SKUs such as non-fat yogurt and 100-calorie snack packs
- Fremont Fish Market: frozen fish and seafood
- Friendly Farms: dairy products
- Huntington Home: home furnishings and decor
- Little Journey: baby products such as diapers, wipes, formula, organic food and snacks
- liveGfree: gluten-free products
- Mama Cozzi's: frozen and refrigerated pizzas, calzones, pizza snacks, breadsticks
- Never Any!: meat with no antibiotics, no added hormones and no animal by-products
- Park Street Deli: snacks, side dishes and quick meals
- Pueblo Lindo: Hispanic food such as flour tortillas and green enchilada sauce
- Simply Nature: organic and all-natural packaged food
- Southern Grove: nuts, trail mixes and dried fruits
- Specially Selected: premium brand that ranges from breads and frozen mini eclairs to bottled mango peach salsa as well as wines and cheeses
- Winking Owl: wine
Additionally, in recent years Aldi has been rolling out a growing number of advent calendars. It rolled out a "Festive Collection" wine Advent calendar for the 2018 holiday season that sold out in minutes. In subsequent years it has steadily grown the concept to include cheese, candle, beer, hard seltzer and multiple chocolate calendars. It also has sold calendars with Lego, Mattel, Disney and other play and pop culture themes. Aldi has also tied in to holidays such as Christmas and Valentine's Day by rolling out limited-edition, themed Happy Farms SKUs.
Cause/Community Programs
Cause/Community Programs
The retailer's ALDI Smart Kids program provides funding and gift cards to organizations that promote kids’ health and wellness. Organizations with a mission to support kids through education, arts, physical activity, nutrition and socialization are encouraged to apply for support via aldismartkids.com.
All stores partner with local Feeding America food banks to both reduce waste and help local communities by donating overstock, short-dated SKUs and items where the packaging has been damaged. It has lead to more than 33 million pounds of food and 72,000 pounds of household products donated through Aldi's partnership with nonprofit Good360, according to the retailer's 2022 Corporate Responsibility Progress Report
Aldi also partners with Action for Healthy Kids to fund initiatives at K-12 schools focused on encouraging students to be physically active and eat healthy.
The retailer strives to raise $1 million each year for Alex's Lemonade Stand Foundation's (ALSF) efforts to fight childhood cancer. Fundraising includes seeking shopper donations, setting up lemonade stands, limited-time lemon-themed Aldi Finds, ALSF-branded items, reusable grocery bags that were designed by ALSF child artists, with corporate matching the gifts. Since 2019, the retailer has raised $5 million to ALSF, and has made it a goal to raise $10 million for the foundation by 2027.
Aldi also eliminated all plastic shopping bags from its stores at the end of 2023. The retailer also revealed a goal to transition to natural refrigerants across all its U.S. stores before the end of 2035.
Advertising Strategy
Advertising Strategy
Tagline: “It's an Aldi thing”
Aldi's "It's not a sale. It's an Aldi thing" campaign launched around the 2022 holidays. The spots, produced by Leo Burnett Chicago and Digitas, aired on linear, streaming, social media and OTV outlets. Video and audio shorts emphasized the retailer's perennial low prices and aimed to draw budget-conscious shoppers.
That approach fits in with Aldi's primary advertising goal to position its exclusive and private label SKUs as less-expensive equals to national brand products.
Solution Providers
Solution Providers
- U.S. Agency of Record: Leo Burnett, Chicago
- POP Displays: The Royal Group, Cicero, Illinois
- Digital commerce platform: Spryker, Berlin
Marketing Expenditures
Marketing Expenditures
As a private company, Aldi does not release marketing expenses.