Dive Brief:
- Aldi announced Thursday it is cutting prices through Labor Day on nearly 25% of its selection across its entire U.S. store fleet. Nearly all of the discounted items are part of Aldi’s private label assortment, Chief Commercial Officer Scott Patton said.
- While the discounter upped the number of items receiving price reductions from around 250 last summer to more than 400 this year, Aldi advertised both initiatives as a way for consumers to save $100 million.
- Patton said Aldi will continue to lean into its low prices and private label offerings to differentiate itself, noting that these efforts are fueling the discounter’s rapid growth across the country.
Dive Insight:
Aldi’s decision to roll out summer-long price reductions on more than 400 products aims to show customers that the discounter offers consistently low prices versus touch-and-go sales, Patton said.
“This isn’t a one-week sale, this isn’t a high-low. We’re investing in these retails for the summer. We want our customers to come in week after week and have the same price and not have it go up and down all the time,” he said.
The discounts will apply across departments, including meat, produce and pantry.
While most of the discounted items are part of Aldi’s brand, around 6% of the price cuts are on name brand products, the discounter confirmed.
Aldi is just over one year into its ambitious goal of opening 800 stores by the end of 2028, with Patton noting that the retailer’s private label reliance is fueling this growth plan. So far this year, Alid has opened 55 of its planned 225 locations, with 75 in the pipeline to debut this summer in a mix of growth markets and established markets.
“The [store] growth is actually one of the enablers that allows us to continue the lower prices,” he said. “We are 90% private label, so that gives us complete control and partnership with our suppliers — and I’d say that makes our growth different than some of our competitors… We can take those savings, and pass them on to our customers.”
