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Aldi to Reduce Prices

06/26/2023

According to Scott Patton, VP of National Buying, Aldi will reduce prices on over 250 items through summer.  With inflation tempering purchasing patterns and with clear evidence of a rejection of higher-priced meats, Aldi will attempt to reverse “trading down” by lowering prices to consumers for selected cuts prices.

 

Through efficiency, buying power and a privately-held structure, Aldi and other deep discounters are in a more favorable position than public-traded supermarket chains to trim margins.   This was evident during the unprecedented rise in the price of eggs attributed, in part, to the HPAI outbreak during 2022 and early 2023. Aldi held margins during the period when shelf prices in conventional supermarkets exceeded $5 per dozen for generic large. The chain responded rapidly to the March-April 2023 decline in wholesale prices posting differentials in shelf price of $1 to $2 per dozen in comparison to competitors.

 

Wide markups inhibit consumption and are to the detriment of the industry by suppressing demand.