Aldi Grocery Store's Business Strategy

Background

Aldi is a grocery store that focuses on low overhead and efficiency in delivering products to consumers. ALDI now has more than 2,000 stores across 36 states, employs over 25,000 people, and has been steadily growing since opening its first US store in Iowa in 1976; Aldi is headquartered in Batavia, Illinois.

Founded by the Albrecht family, the first ALDI store opened in 1961 in Germany, making ALDI the first discounter in the world. The no-frills grocery shopping experience focuses on customers first - delivering high-quality food they’re proud to serve their family, responsive customer service, everyday low prices, and a quick-and-easy shopping experience with only four to five aisles with all the essentials.

Aldi carriers the weekly must-haves and display them in their designed shipping boxes to help save time and resources to restock shelves. Shoppers will find more than 90 percent of the groceries we offer are under our ALDI exclusive brands, hand-selected by ALDI to ensure that our products meet or exceed the national brands on taste, quality, and, of course, price. That means you don’t have to worry about which ketchup or Greek yogurt brand is best because we’ve specially curated the best product for you and your family.

Additionally, we partner with a wide variety of growers – including some local farmers – to offer a wide variety of fresh, in-season produce, including organic fruits and vegetables. From USDA Choice meats to gluten-free and organic foods, we are committed to bringing our shoppers the highest quality products at low prices.

The Aldi brand is associated with value for money. Aldi’s slogan is “spend a little, live a lot.” The company buys large qualities of products from carefully selected suppliers. The savings achieved by sourcing products in this way can be passed on to customers. Aldi keeps costs down in other ways. It ensures its operations are as efficient as possible. For example, store layouts are kept as simple as possible, and opening hours focus on the busiest times of the day.

Expansion Plans

Aldi plans to open 100 new stores in the US, expand grocery pickup, and break ground on a new distribution center as the company looks to capitalize on pandemic-led growth.

The retailer announced will open approximately 100 new locations nationwide in 2021, focusing on Arizona, California, Florida, and the Northeast. The expansion brings Aldi closer to becoming the third-largest U.S. grocery retailer by store count by the end of 2022. The company also said it would add curbside grocery pickup service to 500 additional stores by the end of the year, bringing the total number of curbside locations to more than 1,200. Aldi will also continue to offer grocery delivery via Instacart in almost all of its stores.

Selected Awards

In 2020, Retailer Price Index, Grocery Edition, ALDI ranked No.1 on price for the second year in a row. Customers perceive ALDI as having the lowest grocery prices among major retailers. Overall, in the U.S. Grocery category, ALDI ranked No. 7 of the top 14 retailers in 2020, up from No. 11 in 2019.

The latest Market Force Information® U.S. Grocery Competitive Study results are here. Once again, shoppers voted ALDI one of America’s Favorite Grocery Stores and No. 1 when it comes to providing outstanding value. ALDI has held the top spot for value for the past 10 years, highlighting our commitment to offering high-quality food at affordable prices.*

According to the latest Market Force Information® U.S. Grocery Competitive Study, ALDI-exclusive products are among the most preferred by U.S. consumers.

Aldi – Training Overview

Aldi places great importance on how it trains and develops its employees. For example, recent graduates receive training in all areas of the business. This ranges from training in-store to understanding how the retail operation works to regional office tasks such as logistics and financial planning. All recent graduates learn about the philosophy of Aldi and its expectations of them. This is important in making new employees quickly feel part of the Aldi family.

Recent graduates are hired into a two-year program. In the United States, the program is called the District Manager Training Program. It is a 2-year course covering every aspect of retail management, including store operations, team leadership, purchasing, financial administration, logistics, and property management.

Demanding and uncompromising, this program requires significant effort and flexibility to complete, but Aldi will support program participants along the way. The District Manager Training Program lets participants show what they can offer the business and what it can offer them. Aldi provides an excellent reward package for recent graduates but, in return, expects trainees to have enthusiasm, drive, and ambition.

The District Manager position offers a minimum $80,000 starting salary with a possible $5K signing bonus and earning potential of $110K+ in five years (salaries/bonuses will vary by market). We also provide our District Managers with a company-provided car, either an Audi A3 or BMW X1, and 50+ weeks of award-winning training where they will experience all aspects of running a successful operation.

Directions!

Please answer the following FIVE questions. One question requires a research citation (# 5).

1. In no more than two sentences, describe Aldi.

2. This question has two parts.

Part One. What is a business strategy? (Hint: See Chapter Two in Employee Training & Development).

Part Two. Name and explain at least three ways the company’s business strategy impacts employee training. Use examples to support your answer. (Hint: See Chapter Two - PPT Slides)

3. This question has two parts.

Part One. Based on what you read in the case, what is Aldi’s business strategy? (Hint: Your textbook defines four strategies in Chapter Two, Employee Training & Development - one applies to Aldi).

Part Two. Next, provide two examples from the case to support your answer. In other words, provide evidence to support your answer about the relevant business strategy.

4. This question has two parts.

Part One. Define employee training and explain the goals of employee training. (Hint: See Chapter One in Employee Training & Development)

Part Two. In comparison to training, what are the goals of employee development? (Hint: See Chapter One in Employee Training & Development and/or the class slides)

5. This question has two parts. (Research Requirement!)

Part One. Visit Aldi’s District Manager’s Overview page. In no more than TWO sentences, describe the goal of Aldi’s district manager program.

Part Two. Based on your understanding of training vs. development, is Aldi’s District Manager program a training or development program? Use examples from the case and/or the textbook to support your answer.

Research Requirement (Question 5, Part Two)! The answer to this question requires one research citation. Please list the research citation below your answer

When responding to the questions:

Formatting Guidelines. You are required to copy and paste each question first. Then type in the answer below each question. Make sure you keep the question numbers.

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