Aldi drops prices on 400 grocery items as Walmart signals price hikes
Grocery chain Aldi, already popular with budget-conscious households for its low prices, said it’s making its products even more affordable for shoppers this summer.
The retailer said it’s cutting prices on 400 grocery items — or about 25% of its product mix — ranging from fresh meats such as baby back ribs to organic produce, sprouted grain breads, Greek yogurt, frozen pizza bagels and pantry necessities across its more than 2,400 stores.
For instance, the price for a bag of Clancy’s: Chili Lime Potato Chips is dropping to $1.79 from a previous was $1.89; Friendly Farms: 2% Ultra-Filtered Milk will now cost $3.89 from an earlier $4.39; Mama Cozzi’s: Mini Pizza Bagels is now priced at $5.99 from $6.29 and the price of Millville: Protein Pancake Mix has gone down to $3.49 from$3.79.
Aldi said it expects the move to save shoppers an estimated $100 million over the coming months.
With its no-frills, small-sized, hybrid grocery/discount store concept, Aldi sits in a sweet spot with shoppers as more families turn to low-cost sellers of groceries and everyday essentials to help them stay within budget and keep expenses down.
The company is able to keep its prices low and compete aggressively with other value-priced grocery sellers, such as Walmart, because 90% of its products are private label instead of higher-priced branded alternatives.
Its customers, including the 3.5 million members of the Aldi Aisle of Shame Facebook page, appreciate Aldi’s small-store format for another reason — it allows them to save time by getting in and out of the store quickly compared to a Walmart Supercenter.
Plus, every Aldi store has a middle aisle called “Aldi Finds,” also dubbed as the “aisle of shame.” It’s stocked with all kinds of unexpected items — candles, clothing, shoes, pet products, lawn decoration, home decor, school supplies and toys.
“Our customers count on Aldi for the lowest prices of any national grocer, every day, and we never take that trust for granted,” Jason Hart, CEO of Aldi, said in a statement. “While customers may see higher prices at other retailers, we’re working hard to unlock even more value for our shoppers, just in time for summer’s lineup of holidays and gatherings where food takes center stage.”
Aldi’s price cuts come on the heels of Walmart WMT 0.00%↑ warning last month that it would soon begin to raise prices to help mitigate the impact of tariffs.
Aldi, which is already spreading across America’s neighborhoods at a furious pace, plans to add more than 225 stores this year.