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Progressive Grocer Names Aldi 2023 Retailer of the Year

11/27/2023

Closely held Aldi, Inc., the U. S. subsidiary of the German holding company, does not disclose financial data.  Industry sources place U.S. annual sales in the region of $35 billion.  The company has a current store count of 2,400 making it the third-largest grocery chain in the U. S. albeit with 12,000 square foot locations.  Aldi operates according to the principle of offering the lowest prices possible.  This is facilitated by direct sourcing, limiting the number of SKUs with a limited assortment of approximately 1,800 products per store with a high proportion of private brands.  The company does not have a membership program, does not offer coupons, advertise or conduct sales.  Customer loyalty is generated by prices, convenience in shopping and quality of produce.

 

Based on its European DNA, Aldi in the U.S. has embarked on a program of sustainability, removing plastic bags, installing solar panels and recycling packaging.

 

Aldi, a non-union enterprise has a high employee retention rate based on competitive wages and benefits including parental and caregiver leave, scheduling of work times for convenience and available employee assistance programs.  Aldi also values its relationship with suppliers established and supported over 30 years. This benefited the Company during the COVID period when Aldi was able to continually stock shelves.  The European connection also benefits U.S. stores through import of unique items and expertise in monitoring trends in shopping, sustainability and merchandising.