Aldi's CEO Just Shared A Statement With Customers About Its Prices
It's hard not to notice how dramatically prices have increased in recent months. No matter what's on your list, whether it be from the produce section, or the frozen foods aisle, you can generally expect to pay more than what you're used to. Supply chain issues and labor shortages have caused prices to rise 7.9% from February 2021 to 2022, CNBC reports. Based on data from the consumer price index, that's the largest 12-month increase since 1981.
If you're working with a tight budget for your groceries, you may want to start shopping at Aldi if you're not doing so already. The German-founded chain is known for its everyday low prices, and according to the CEO of the U.S. division, that's not about to change any time soon. In an open letter published to the company's Facebook, CEO Jason Hart reassured customers that saving them money will continue to remain Aldi's number one priority. "No matter what happens in the world around us, Aldi will always be the low-price leader in every community we serve," Hart promised. "No tricks. No gimmicks. Just real savings that help stretch your dollar further for the things that matter most."
How is Aldi able to maintain its low prices?
Judging by the comments on Aldi's Facebook post, it seems the chain has managed to cultivate an incredibly loyal customer base, and the affordability is the biggest reason why. While you might assume there's a catch somewhere, the truth is that Aldi's business model makes the low prices possible.
As Taste of Home points out, 90% of Aldi's products are from private labels. You won't find the same major name brands you do at big box retailers, but that's exactly why the prices are lower. Without a middle man, Aldi doesn't have to pay an outside supplier, nor does it have to do any of the extra advertising that comes along with it. As a result, Aldi sells a smaller selection of products, which in turn means smaller stores, cheaper rent, minimal stock, and fewer employees. For customers, this ultimately translates to cheaper than normal prices that Aldi is determined to maintain, despite the current trends in food prices.