Aldi Reports Double-Digit Sales Growth Amid Rising Inflation; Scott Patton Comments
BATAVIA, IL - In the face of rising inflation, consumers are tightening their purse strings and looking for ways to budge their grocery expenses. For Aldi’s United States arm, this equates to higher same-store sales due to the retailer’s discount prices and wide selection of quality products.
"Inflation is hitting everyone, so when we can be a solution for the grocery portion of that, that's important," said Scott Patton, Vice President of National Buying, at a recent media event that was reported on by Reuters.
Over the past year, Aldi has welcomed more than 1 million new households to its stores and experienced double-digit sales growth, a release explained. While lower prices play a crucial role in why shoppers have begun flocking to the grocery chain, that is not the only reason. On top of affordability, Aldi has a vast selection of fruit, vegetables, and other high-quality fresh foods.
Aldi explained that it gets fresh produce delivered daily and sourced locally whenever possible. The retailer also has a large organic selection and emphasizes seasonal offerings to give its shoppers produce at the peak of freshness.
“Many times, people equate low price with low quality, but that is simply not the case at Aldi,” Patton stated in the press release. “We make thousands of strategic, intentional decisions that help us keep prices low on high-quality groceries because we’re committed to giving our shoppers the very best, at a price they can afford—every day, in every aisle.”
Due to its dedication to produce, the company has seen fresh fruit and vegetable sales rise 70 percent over the last five years. During that time, it has expanded its assortment by 20 percent, with a heavy focus on organic. On average, the stores carry 130 items at any given time, and 98 percent of the most popular produce can be found in the mix.
By cutting out excess labor, refreshing produce seasonally, and offering only 130 types of products on average at its U.S. stores, Aldi can price fruits and vegetables at a 20–40 percent discount compared to its competitors.
To read more about Aldi's strategy, click here.
With inflation influencing consumer shopping behaviors, will other retailers take cues from Aldi? Keep reading AndNowUKnow to find out.