Aldi and lidl business model

By : Forum Moderator
Published 12th March 2015 |
Read latest comment - 7th June 2015

i have to confess I only recently ventured in to Aldi and was quite surprised. They have some branded good and most made to look like branded goods. What I don't understand is how they ponder cut other supermarkets. Is the quality worse? I tried the wine and it's comparable, the cat food looks the same and the olives, I just don't understand the model is it volume based or cheaper ingredients?


Angela
My views & opinions are my own
Comments

Haven't quite made my mind up on Aldi, I think they have their moments, some products seem to be cheaper, but to me the quality is not always the same as the mainstream supermarkets. I also find that their customer service is lacking a bit compared to others. I have yet to reach the checkouts and been asked whether i would like a hand to pack the bags, instead I find the person on the checkout, trying to scan my purchases at 100mph leaving everything in a heap and then return to admire her finger nails, whilst huffing and puffing because I am not packing everything quick enough..... Usually at this point I tend to drag the process of bagging everything out, just to cheese everyone off.....


Thanks,
Barney

We have ventured in them a few times they are cheaper than other stores and yes I too do get pi@@ed off when they leave my pile of good for me to pack.... I was told why they were cheaper but can't remember now something to do with mostly stuff from another country hence the labelling ,but I'm sure someone here knows the real reason 


Thanks,
Andy-C | Pewter World

More restricted range (so lower inventory costs)?

More efficient back office operations?


Linda
CareersPartnershipUK

I'm with everyone on the bag thing.

I don't hand them a single penny until i have put all of my items in the bag.


Thanks,
Kempres

hm, at our local Aldi there's not much room to pack at all so you really have to throw it your trolley and worry about packing afterwards. The next time I go in I'm going to take your approach.


Angela
My views & opinions are my own

Part of the reason why Aldi can offer such low prices is their no frills approach to the 'retail operations' side of their business, which boils down to 3 main elements...

  • Limited choice in their product range (You'll never find more than 2 types of any product on their shelves - you will rarely find the big brands advertising on prime time TV)
  • Basic shelving / merchandising layout (products are generally stacked tight in bins, on palettes, etc., with a neon A4 page above showing the price)
  • Speedy checkout (Aldi actually train their staff to scan a customer's goods as quickly as possible; they also have much smaller packing areas than other shops, and less 'exit space' for you to actually leave the shop post-checkout. They want you to pay and leave asap!)

This 'Ryanair style' approach to retail doesn't work for everyone, but it keeps Aldi's prices low! 


Thanks,
Sam at Daltons Business

Speedy checkout (Aldi actually train their staff to scan a customer's goods as quickly as possible; they also have much smaller packing areas than other shops, and less 'exit space' for you to actually leave the shop post-checkout. They want you to pay and leave asap!)”
 

Very clever  It seems to work well for them and shows some slick analysis of how to make your operation as lean and efficient as possible.

I'm still a snob though and haven't been in 

Welcome aboard Sam 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

They operate with far less staff in each store too, that's got to be a big factor. 


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They operate with far less staff in each store too, that's got to be a big factor. ”
 

Very good point, one of the biggest overheads has to be resource. 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

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