Dive Brief:
- Aldi intends to reduce prices on more than 250 items during the summer in a move the discount grocery chain said will save shoppers in the U.S. more than $100 million, according to a Thursday press release.
- The price cuts cover a broad range of seasonal goods, including items for picnics, travel-ready snacks and better-for-you foods. Most of the reductions will last through Labor Day.
- Aldi is doubling down on its reputation for low prices as other grocers also step up their efforts to highlight a commitment to value.
Dive Insight:
Aldi’s announcement comes just a few weeks after the federal government reported that grocery inflation rose in March after steadily moving downward since late 2022.
The German chain sought to capitalize on that news, highlighting its no-frills approach to retailing and positioning itself as the antidote to the stress many people are feeling as they deal with cost pressures. The company notes that it keeps its expenses down by focusing on smaller stores and leaving items in the boxes they are shipped in when stocking shelves.
The discounting drive follows a similar strategy Aldi followed last year, when the fast-growing grocer lowered prices on certain items in what it said was a bid to save shoppers $60 million.
“Aldi is always looking for ways to help customers save money, but with more experts warning of persistent inflation, the time was right to deliver even greater discounts on our already low prices for the second year in a row,” Dave Rinaldo, president of Aldi U.S., said in a statement about the company’s latest price cuts.
The price reductions Aldi is rolling out illustrate how the company uses discounts measured in cents to appeal to people who have made saving money a top priority. For example, Aldi said it is cutting the cost of a container of organic avocado oil by 16 cents, to $5.49, and lowering prices for packages of dried cranberries and sunflower kernels by 20 cents and 60 cents, respectively.
Other price cuts in the program are more substantial. Aldi said it will lower the price for a package of sirloin steak by $1.50, to $6.99. In sign that even Aldi has limits, however, the savings on sirloins extend only through July 10.
