Low-price grocers like Aldi are winning as consumers trade down | CNN Business

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Low-price grocers like Aldi are winning as consumers trade down | CNN Business
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With grocery prices soaring, consumers are changing the way they shop for food. That’s great news for discount grocers like bare-bones supermarket Aldi.

Aldi, which requires a 25-cent deposit to use grocery carts, sells mostly store brands and doesn’t waste time on elaborate displays, might not be for everyone. But more than one million new households shopped at Aldi in the year through September, helping rack up double-digit sales growth in that period. Foot traffic across most of its 2,200 US stores jumped about 10.5% year over year, according to Placer.ai — even as grocery sector visits were about flat.

At Aldi, about 90% of packaged goods are private-label. Aldi nudges shoppers toward its label in multiple ways: Customers who aren’t satisfied with a product get a refund and a replacement as part of the chain’s “Twice as Nice” guarantee. And it often displays its own brands right next to the national brands it carries in stores, putting price differences in stark relief.

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