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Daily Mirror
Daily Mirror
Business
Levi Winchester

Aldi insider reveals five secrets behind low prices - and why it doesn't have loyalty card

Aldi is famous for its low prices - and the cost of living crisis has sent more shoppers through its doors as households look to save money.

The German discounter recently overtook Morrisons to become Britain’s fourth-biggest supermarket - behind Tesco, Sainsbury’s and Asda - after claiming 9.3% of the market share.

Research firm Kantar said Aldi's sales rose by almost a fifth in the 12 weeks to 4 September compared with a year earlier.

The supermarket has also been named the cheapest supermarket in the UK for the third month in a row by Which? for a basket of 48 grocery items.

But how exactly does Aldi keep its prices low? Julie Ashfield, Managing Director of Buying at Aldi, has shared some insider knowledge.

Aldi has been named the cheapest supermarket again by Which? (Getty Images)

Smaller stores mean they cost less to run

Aldi has smaller stores than other supermarkets - which means they are cheaper to run, so in turn, they can keep prices low.

"The average Aldi store size is 16,400 sq ft. By comparison, big supermarket superstores can be up to 70,000 sq ft," said Ms Ashfield.

"Smaller space means far less being spent on both running costs and maintenance, which in turn allows Aldi to offer lower prices at the tills."

Less choice in products keeps prices low

You'll probably have noticed that Aldi typically doesn't offer a wide choice of brands - unless they are part of a Specialbuy.

Only focusing on one label means Aldi operates on a much smaller scale, so production becomes more efficient.

Ms Ashfield said: "Think brown sauce, for example. Other supermarkets will have big brands and their own label sauces.

"By contrast Aldi only sells one type of brown sauce, which quality matches the leading brand and sells huge volumes.

"This creates economies of scale and keeps the price of the brown sauce low for Aldi shoppers.

"It’s a winning formula that is one of the big reasons why Aldi’s prices are lower than its rivals."

Aldi doesn't offer a loyalty scheme - and it won't sell BOGOFs

Unlike most supermarkets, Aldi does not offer a loyalty card scheme.

Ms Ashfield says Aldi wants to "focus on supplying consistent great value to all customers" rather than rewarding certain shoppers.

"They also don’t offer multi-buy deals and have no intention to introduce them," he said.

"Shoppers, therefore, don’t buy more than they need, helping to keep waste and prices low for everyone."

Staff work across all sections of the store

By training staff to work on all areas of every store - from scanning at the till to keeping shelves stocked - Aldi can have a smaller workforce.

"Aldi prides itself on the training and development opportunities it offers to all colleagues. It is also the UK’s best-paying supermarket," said Ms Ashfield.

"But it’s not just about ensuring their workforce are as happy and well-equipped for their roles as possible. It’s also a smart way of keeping prices low."

Aldi uses less energy to reduce its costs

Aldi UK has been carbon neutral since January 2019.

"By using less energy, Aldi is able to make savings elsewhere in the business to benefit customers," said Ms Ashfield.

There are several ways Aldi has become carbon neutral.

This includes using 100% renewable electricity and purchasing carbon offsets for the emissions that they can’t reduce completely just yet.

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