Therefore, the cost-leader isn’t such because it started a price war. Quite the opposite, the cost leader is such, because thanks to its broad industry reach, efficiency, and scale, can sell its products at a lower price and yet make margins.
Aldi uses a set of strategies to keep its prices low while maintaining a high quality:
Aldi lists 1,300 items in each store every day, which is very limited compared to other supermarket chains. That keeps waste to a minimum.
Aldi also stocks a lot of their own brands, with some becoming successful, which lowers the sales and marketingcost.
90% of the products are Aldi-exclusive brands, which makes it easy for the chain to market them, with more flexibility on price and distribution.
ALDI in a way retains a. self-service attitude, where customers bring their own bags or can buy reusable bags at the store. Also, they must bag their own groceries. This lower the costs of serving clients for the company compared to other chains.
Limiting store hours and keeping their stores small (about 15,000-20,000 square feet).
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