Today, big box stores and foreign discount chains are beating out more traditional supermarkets. Here's how they're attracting customers like never before.
about one of his competitors, he’s not referring to Amazon. He isn’t pointing to large chains like Kroger or Albertsons, dollar stores like Dollar General or online entrants like FreshDirect and Instacart.
On a recent trip to an Aldi in New Jersey, antibiotic-free chicken was $4.29 a pound. At nearby competitors, Trader Joe’s “All Natural Chicken” and Whole Foods’ “365 Organic Fresh Chicken” were $4.99 and $6.99 a pound, respectively. “They are 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.
This is not a novel idea. Several American grocers tried it in the 1980s and 1990s, but abandoned the practice after it annoyed customers who had come to expect more services of their grocery stores. Aldi, which opened its, has stuck with the model, insisting the deposit system is core to its low-price strategy. The store’s most die-hard fans even celebrate it, heralding when Aldi offers “quarter keeper” keychains from time to time. Some fans even knit their own versions.
The packaging on these items sometimes looks so similar to the brand-name alternatives that customers find themselves doing a double-take. Aldi's Honey Nut Crispy Oats, for example, come in box that's nearly the same shades of orange, yellow and brown as General Mills’ Honey Nut Cheerios, and with a similar font, too. Aldi sells its Tandil laundry detergent in an orange plastic jug with blue and yellow graphics reminiscent of Tide.
“Those lines fly. You’re not waiting for people to bag. They’re not messing around there,” said Robicelli. “Once you see that kind of efficiency, it makes going to other supermarkets really annoying and really tedious.”Another labor-saving trick: Cashiers don’t bag groceries. Instead, they drop items directly into customers’ carts.
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