One way Aldi is able to keep its prices down is by limiting the brand names offered in its stores. Instead, the chain relies on its own private labels, which make up 90 percent of its inventory, per Business Insider. While it carries only 900 core products, that limit keeps prices down for the consumer.
According to CNN, keeping less in stock also means Aldi doesn't need as much space. Its stores are typically smaller than its rivals, which result in lower rent costs and fewer employees needed to restock shelves. Aldi is "able to drive out every fractional cent of cost without compromising on quality," said Katrijn Gielens, professor of marketing at UNC's Kenan-Flagler Business School. Gielens estimates that Aldi's operating costs are about half that of mainstream retailers. In addition, the company is making some eco-friendly, cost-saving changes. Aldi announced in 2017 that it was remodeling some stores to bring in natural light and to utilize recycled materials.
When it comes to home and garden items, Aldi often showcases limited-time deals with many products priced under $20. Its website also promotes upcoming specials in advance — everthing from writing desks to fiddle-leaf fig trees, and Food52 "grocery story whisperer" Katie Workman nabbed sleeping bags for under 10 bucks!
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