Why are the prices so cheap at Aldi's grocery store?

Answer by  LethaHarris (14)

With a no frills approach, Aldi's stores are able to maintain low prices. The stores work with minimal employees, very cost efficient advertising, and pallet lots of groceries and special purchase items on the sales floor. They do not give away grocery bags, but instead sell them. Shopping carts are available, but for a small cost.

Answer by  tamarawilhite (17883)

Aldi's is cheap because they have fewer items in stock. This reduces inventory management costs. And having fewer items means their store has one fourth (or less) the floor space of competitors, lowering their rent.

Answer by  Ronna (5)

Yes, they are cheap. But, I just bought a bag of Gala Apples on sale for 1.49, got them home and they are all bruised terribly. The last two times I bought a bag of onions they were rotten. Shame on me twice.

Answer by  ryanhill (40)

I think the prices at Aldi's are so cheap because they try to get most of their produce from local markets which cuts down on their overhead

Answer by  trigonometry (668)

Aldi has special contracts with the producers. They buy centrally and in large quantity for all stores. This allows them to negotiate very good prices. Additionally they save money with streamline administration. And they hand on their savings to the customers.

Answer by  VegasGary (3)

They have the least amount of employees of any supermarket I have ever seen. In addition there are no frills as the cashier bags the groceries. Carts are controlled by a deposit. The prices are low because they have such low overhead.