Aldi is a discount supermarket chain founded by brothers Karl and Theo Albrecht in 1946. The German-based company is one of the world’s largest privately owned businesses, with over 10,000 stores in 20 countries.
Aldi’s business model is based on offering a small number of products at low prices. The company does this by keeping costs low throughout the entire organization.
For example, Aldi stores are smaller than most supermarkets, which allows for lower rent and utility costs. Additionally, Aldi doesn’t accept manufacturer coupons and limits its inventory to a small number of items, which reduces storage and handling costs.
Aldi also keeps its prices low by sourcing many of its products from its own private label brands. Private label products are usually cheaper than name-brand products because the manufacturers don’t have to spend money on marketing and advertising.
Therefore, the combination of low overhead costs and private label products allow Aldi to sell its items at much lower prices than its competitors.
Aldi’s food is so cheap because of their business model which includes smaller store sizes, lack of manufacturer coupons, limited inventory, and private label brands. All of these help to keep Aldi’s overhead costs low so they can sell their food at lower prices than other stores.
