The cost of living is on the rise across the globe. On the other side of that coin are slimmer profit margins for retailers. However, German grocer, Aldi, seems to have cracked the code to a better bottom line. This article details how the company did it with help from their shoppers…
How Aldi Turned a “Dead Aisle” into a Money-Maker
Aldi has been operating in the U.S. since 1976. As such, the chain has weathered its share of economic uncertainty. However, this era of simultaneous inflation and shrinkflation is something entirely new.
So, how are they expanding while others contract? By maximizing profits on the often overlooked middle aisle of their grocery stores.
Senior director for global consulting firm, Alvarez & Marsal, John Clear, explained it like this.
“THE WAY I THINK ABOUT THAT MIDDLE AISLE IS THAT TRADITIONALLY CUSTOMERS SPENT A LOT OF TIME SHOPPING THE OUTSIDE OF THE STORE, WHICH IS FROZEN, CHILLED, FRESH, FREEZER. [ADDING THAT THOSE SECTIONS TEND TO BE LOWER MARGIN AREAS.]”
Via CNN
Instead of just neglecting the center of their stores, Aldi found a way of bringing more attention to it.
It is highlighted as the “Aldi’s Finds” aisle and has a variety of non-grocery items. That in and of itself doesn’t sound special until you add the fear of missing out to the mix…
FOMO is Alive and Well at Aldi…
Every Wednesday, the German-based chain restocks the Aldi’s Finds aisle…
You will find die-hard fans lying in wait to snag up the latest hidden gems. There is even a dedicated Facebook group with nearly 3 million members to spread the word on the hottest finds.
The products in the Finds section can be anything from gardening supplies to sequined dresses. And when the product is GREAT, it goes viral…
But, there is no guarantee that your nearest location will have it in stock or at all.
Nonetheless, Aldi’s using this marketing tactic has resulted in higher dollar amounts on each order.
But, there is no guarantee that your nearest location will have it in stock or at all. So, why do consumers put themselves through it?
Why Customers are Willing to Put in the Work for Deals
There are two main reasons customers may be willing to go the extra mile for a deal at Aldi…
First, research shows that Aldi can be up to 15% less expensive than its competitor Walmart.
This logic carries into the mindset that shoppers can afford to “treat themselves” in the Finds aisle.
The grocery retailer made this comment in an email to CNN:
“FANS LOVE OUR ALDI FINDS AISLE BECAUSE IT TAKES THE AVERAGE GROCERY TRIP FROM ERRAND TO ADVENTURE.”
Whatever the case, it is a successful action for the company and proves that you can turn problems into opportunities.
Be Great,
GCTV Staff
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