With news all over the internet about Aldi closing, many people are left confused, wondering whether their town’s branch is doing the same. If you are wondering: is Aldi closing stores, be assured that they are only doing so for some branches.
Aldi is one of the biggest chain stores in the US - and it has a very low chance of closing down completely. Despite a Reddit post circulating about Aldi closing soon, it seems to be an internet rumor. On the contrary, more and more Aldi stores are opening up across the US.
Fortunately for customers, they are yet to see Aldi close down anytime soon. The store may have faced some drawbacks due to the pandemic, but they are not closing yet.
Internet rumors have a great power to convince people to believe in things that aren't even remotely true. Aldi experienced something similar when rumors of store closures spread across the US. Contrary to popular belief, Aldi is actually expanding across the US in addition to keeping its present stores open.
During the Covid-19 pandemic, the decrease in sales forced a lot of chain stores and shops to temporarily or permanently end their business. During the dire situation, Aldi pulled a surprising move and opened 100 more stores across the country. Currently, there are more than 2100 stores across the 38 states in the US.
Aldi keeps a promise to keep their retail prices the lowest possible for every customer. The store undoubtedly gained customer loyalty due to this commitment. And therefore, they are only focusing on improving their stores and adding more for the communities nationwide.
Aldi’s stores keep growing across the nation for their cheap prices and customer loyalty. But there is the recent news of the company closing one of its stores due to safety concerns. The Aldi store in question is one at 2877 Lamar Ave, in the Orange Mound community in Memphis.
There has been news of crimes happening in the store, putting customers at risk. Burglaries, damage to their property, and bad sales have resulted in this decision. Although the one Memphis store is closing, six other stores in the area will remain open.
Employees in the Lamar Ave store have been transferred to the next closest branches and customers are shopping from them now as well.
Starting with their decision to expand during the pandemic’s financial instability, Aldi keeps making bold moves with their company. By the end of 2022, Aldi plans to open around 150 new grocery stores across the US.
There have been other expansion plans in the works as well for Aldi. Since COVID-19 started, no-contact forms of shopping have become more and more popular. Curbside pickup is one way to do it, and Aldi is working on curbside pickup for its customers as well.
Along with home delivery, Aldi has also been working with B2B companies like Instacart to deliver groceries to customers through online orders. The company is constructing new distribution centers in the Southeast and Southwest to make its operations smoother for customers in the area.
Much like in the US, Aldi stores are growing rapidly in Australia as well. Amid the growth, there may have been a handful of stores in certain areas that closed due to poor sales performance and other issues. But otherwise, the chain keeps growing—with Aldi’s plans to invest billions in the Australian sector.
In Australia, Aldi is also heavily reinforcing a new format for their stores. The Aldi Corner tSores will focus on being a small space–around 6400 sq. ft.--while providing essential goods. The corner stores will have readymade goods, coffee, and bread. Therefore, the corner stores were an instant hit with customers who had visited ones in their town.
Aldi is one of the fastest-growing chains in the US. Despite COVID-19’s drawbacks, the store was able to introduce 100 more stores to its current list country-wide. The company does not disclose its net sales information. But according to a 2019 report, the valuation for Aldi stands at $15 billion.
Between 2020 and 2021, most chain stores saw a drop in their sales due to the absence of customers. On the other hand, Aldi not only successfully bypassed the loss but also saw a 15% rise in net sales.
According to most reports, Aldi is predicted to grow even more because of their investments and newer formats of stores opening up.
Trader Joe’s and Aldi’s are not the same company. But, Aldi Sud is the owner of the Aldi that most Americans are familiar with. On the other hand, Trader Joe’s is owned by Aldi Nord.
Aldi Nord and Aldi Sud are legally separate businesses. But, the two companies have contractual trade with each other.
It is no secret that Aldi has whipped up the perfect formula to keep its business flourishing worldwide. In the US only, its rise in sales despite the pandemic shows how the business model has been treating them.
So, let’s check out the reasons why Aldi’s business model is so successful today.
One of Aldi’s biggest selling points is how price-controlled they are. Their catalogs are not heavy with items outside of the essentials and some extra goods. Yet, they draw in millions of customers every day because of their low prices.
Aldi advertises itself as a store that keeps its prices as low as possible. The stores stock only about 1400 items every day, and they still manage to cater to their customers’ needs. Smart stocking leads Aldi to be able to serve healthy products to their customers at the lowest possible price.
In one example from 2019, one can see that a gallon of milk costs $2.79 at Walmart and $2.99 at Kroger. But for the same item in the same year, you would have to pay only $1.85.
Aldi also has one simple trick to keep customers coming back. When you use a cart at Aldi, the quarter you use to get the cart will be returned to you when you finish shopping. Ultimately, this cuts down the customer’s costs.
The lower prices in Aldi’s catalog may make you suspicious about Aldi’s quality control. The reason why the prices are low and the quality still checks out is because of one decision. Aldi regularly sells items off-brand and from private companies that you do not see as much in other grocery stores.
These cheaper options come from brands that are not famous. But in quality, they can match up quite well.
One thing that comes with Aldi’s many cost-saving endeavors is its eco-friendly efforts. Aldi’s saves a lot of money by encouraging customers to bring their own bags for groceries. In case they don’t, they can purchase a grocery bag from Aldi-but it will not be a plastic bag.
Aldi lets customers use reusable cardboard boxes to store groceries on the go, and keeps recycling bins for customers to throw in their recyclable waste. Because of these efforts, the Environmental Protection Agency (ERA) noted Aldi for breaking records through their goals.
Many chain stores spend a lot of their resources catering to customers to gain loyalty as well as for their convenience. While Aldi is one of the most preferred chain stores in the US, loyalty comes from its consistent efforts to keep prices low and maintain the quality of products.
Aldi hardly spends any money on improving the customer experience. This means the customer will bring their bag, pack their groceries, and return their carts. For a little inconvenience, Aldi can maintain its eco-friendly efforts and keep costs to a minimum on its side.
And what is better, customers are happy to comply due to Aldi’s unwavering promise of offering cheap but good quality products.
The employees at Aldi are often cross-trained to be able to carry out different responsibilities at once. Not only does this save Aldi time, but it also saves them money. Employees are compensated for their hard work through benefits that come with their salary.
Because of the cross-training process, you may not see many employees at a time in an Aldi. The employees, or cashiers, at Aldi earn about $12.00 per hour. Additionally, they receive 401(k) plan benefits and other health insurance benefits. Lastly, employees can also enjoy paid time off during their work period and paid vacations.
The recent news and rumors all around are undoubtedly having many people wondering if Aldi is closing stores. Thankfully, due to Aldi’s smart business model and rise in business revenue every year, the company is not closing its stores. Therefore, do not worry and do your research after seeing the news on the internet.