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FRIDAY, NOVEMBER 27, 2009
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In Tough Times, Aldi Promises Cheap Thrills

Shoppers turn to Aldi for cheaper groceries as recession looms

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(Newser) – It may not stock Coke or tempt shoppers with fancy end-aisle displays, but bare-bones grocery chain Aldi fits these tough economics, reports Time. With Americans downgrading to cheaper stores, Aldi's generic, spartan approach is attracting customers eager to save a buck, or more, on a gallon of milk. The chain cuts costs by offering staples—ketchup, cereal, olive oil—in one brand in one size.

Aldi's well-tested European business model undercuts its competitors by up to 90%, eliminating frills like free plastic bags and payment by credit card while keeping in-store staff to a five-employee maximum. Targeting urban neighborhoods where real-estate costs favor Aldi's minimal spatial needs—no butcher here—the chain plans to expand by 100 stores over the next two years.

As food prices continue to rise, Aldi grocery stores are luring customers away from more expensive chains.
As food prices continue to rise, Aldi grocery stores are luring customers away from more expensive chains.   (PRNewsFoto)
Donna McMorrow of Abbington, Mass., shops at a Shaw's supermarket in Braintree, Mass., Tuesday morning, May 27, 2008.
Donna McMorrow of Abbington, Mass., shops at a Shaw's supermarket in Braintree, Mass., Tuesday morning, May 27, 2008. "I'm trying to cut back," says McMorrow on dealing with rising food prices.   (AP Photo/Stephan Savoia)
Aldi requires a 25¢ deposit on shopping carts, saving its staff the chore of corralling unreturned carts%u2014and thereby pinching pennies further.
Aldi requires a 25¢ deposit on shopping carts, saving its staff the chore of corralling unreturned carts%u2014and thereby pinching pennies further.   (AP Photo)
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They have an extreme value proposition, which is appealing at a time like this. - Bill Bishop, retail consultant,
on Aldi's appeal

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Ladydi
Nov 8, 08 12:25 PM CST
I am an Aldi shopper and love it. The stores offer more than just "cheap thrills." There are seasonal bargains such as whole lobster tail for a very affordable price. The produce is always less expensive than other stores and of a good quality. Fresh mushrooms for .99. The same type that would cost you $2.00+ elsewhere. The prepackaged meat comes exactly as you would see at the larger grocery stores. I think it is great they are expanding. Reply
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