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As Americans’ wallets start to feel a little lighter and recession fears loom on the economic horizon, discount grocer Aldi is betting that lower prices might keep shoppers coming — and spending — through the summer.
“At a time when two-thirds of Americans are very concerned about the cost of groceries, Aldi is doing what others can’t: Dropping prices across its aisles,” the company said in a press release.
The Germany-based chain just announced that, starting June 5, it is cutting prices on more than 400 products (nearly 25%), from picnic staples such as hot dogs and potato chips to household goods such as paper towels and freezer bags. The markdowns, which will last through Labor Day, are aimed at softening the blow of still-sticky grocery inflation and positioning Aldi as a summer go-to for families.
This summer’s price reduction campaign isn’t Aldi first move into big discount campaigns — the company said it saved shoppers over $60 million through a similar move in 2023. Now, Aldi claims it will almost double those savings this year: to the tune of $100 million.
Aldi’s campaign underscores a shift in strategy among retailers competing for increasingly price-sensitive shoppers. While inflation has cooled from its 2022 peak, food prices are still up roughly 20% since before the pandemic, and many consumers are trading down to private labels and discount chains — making Aldi’s no-frills model suddenly very on-trend.
“Value isn’t a trend at ALDI,” said Aldi USA’s chief commercial officer, Scott Patton, in a press release. “It’s been in our DNA since we opened our first store nearly 50 years ago.”
He told USA Today: “Summer’s for grilling out, camping, concerts, and quality time with friends and family — not stressing over grocery bills.”
Aldi, which now operates more than 2,300 stores in 39 U.S. states, has steadily expanded its footprint and market share. It finalized its acquisition of Southeastern Grocers last year, adding hundreds of Winn-Dixie and Harveys Supermarket locations to its portfolio. And Aldi plans to open 225 stores this year — and 800 stores by the end of 2028.
Aldi’s cost-cutting approach is embedded in its operational DNA. It uses shipping boxes for product displays, maintains minimalist shelving, and offers predominantly private label products (which make up 90% of its inventory) to reduce overhead costs.
“Our customers count on ALDI for the lowest prices of any national grocer, every day, and we never take that trust for granted,” Aldi USA CEO Jason Hart said in the press release.
With consumer confidence dipping and grocery fatigue setting in, retailers are increasingly experimenting with ways to ease “price pain” — and foster loyalty before a potential downturn hits.
Other grocers could follow Aldi’s lead. Walmart, which leans into low pricing, has hinted at broadening its rollback strategy, and Kroger (KR) recently expanded its private-label offerings. Even Target (TGT), Walgreens (WBA), and Amazon Fresh (AMZN) have announced price reductions on thousands of items in the lead-up to summer.