Is anyone familiar with WinCo supermarket? (Phoenix: crime, chapel, neighborhoods)
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Aldi food is absolutely tier 2 caliber. That's not to say that most of tier 2 isn't just fine (it is), but there are definite differences. All food growers, farmers, meat companies, vendors, etc have varying grades of product, and they are priced on the market accordingly when they are sold to grocery stores.
You mentioned meat as an example...Kroger doesn't have their own meat factories. They have warehouses from where they ship to each of their stores. The product brought into their warehouses is purchased by a corporate procurement team from a variety of meat companies. Some of these meat vendors are large companies like JBS meats, National Beef, etc, and others are small like "Joe meat vendor" who has a tiny ranch outside Tolleson. The meat from each of those different companies does indeed have different levels of quality owing to a variety of factors including butchering process, cold chain integrity, and even the animals themselves. This is why the USDA has a grading system.
Generally speaking, the regular and specialty grocery chains will buy the product toward the top tiers, and possibly even from the middle tiers if they offer a value option for their customers, subject to it passing their own internal quality inspection upon arrival at one of their warehouses. The value-priced chains like Aldi will take what is leftover. Walmart falls somewhere in the middle, however they generally get their hands on fresh meat that is toward the higher end of the quality spectrum for a lower price owing to an ability to leverage their immense buying power.
There are varieties in how this works depending on the commodity, but the concept is largely the same across all of them. In produce, for example, there are standards for a variety of different quality grades that depend on growing process, storage process, gassing (as someone mentioned with bananas), and size. Some companies that are particularly picky about what they stock in their stores will maintain an extremely stringent standard. As an example, a truckload of apples may come into a tier 1 grocery chain's warehouse and be put through quality inspection. If the sample of cases inspected contain bruising on more than 10% of the sampled items or maybe if the color is wrong for the type of apple on more than 15% of the items inspected, then the entire truckload will often be rejected.
But if this happens, the vendor isn't going to just dump or donate an entire truckload of product unless it is rejected due to something that would make the product unsaleable (i.e. insect infestation, incorrect temperature storage while in transit, etc). That vendor is going to attempt to sell the product to the next tier of stores, likely at a reduced cost. Stores like Aldi are the ones who buy it.
Sorry, but most of what you wrote is utterly nonsense.
Your first mistake:
Of course some of the Kroger meat products are produced at Kroger meat plants. Yes, Kroger operates meat plants. King Soopers Meat in Colorado or Vernon Meat in California for example.
You act up like someone who knows something about the topic, but then you don't know that Kroger operates meat plants and factories for almost everything else.
It's absolutely nonsense that Aldi buys what is leftover. Aldi is not a low quality chain like save-a-lot or ruler foods. You really don't understand what Aldi makes successfull. The quality of the Aldi products in Europe is on the same level like name brand products and their meat and produce in on the same level like the meat and produce in conventional grocery stores. PLEASE explain why they should change their business modell for the U.S. market?
Aldi is cheaper because they need much fewer employees, Aldi sales per SKU, per sq ft or per employee is way higher compared to other grocers. Aldi stores are much smaller and they are not open 24/7. They handle just 1,500 SKU compared to about 30,000 SKU at conventional supermarkets. Aldi buys in much higher quantities (per SKU) than Kroger, Albertson or Publix.
Your imagination about Aldi is comparable to the one most Germans had in the late 70s. The perception changed in the 80s, mainly because of top ratings for Aldi products by independent consumer organizations. In Australia and UK the perception of Aldi changed very quickly, mainly because of award winning products. In UK Aldi or Lidl products often beat the premium products from upscale grocery chains. That stands in stark opposition to your outdated and misleading remarks about the quality at Aldi.
The perception of Americans about Aldi would change if independent consumer organizations would reveal that the quality of an average Aldi steak is better than the average quality of a steak from Kroger. Many Americans still believe in "you get what you pay for".
Sorry, but most of what you wrote is utterly nonsense.
You can doubt me if you'd like but I'm in the transportation and distribution side of this industry and work for one of the companies that has been named multiple times in this thread. Admittedly, meat isn't my area of expertise, but I'm familiar with how most of the companies in this industry operate.
Quote:
Originally Posted by sebastiannight
Your first mistake:
Of course some of the Kroger meat products are produced at Kroger meat plants. Yes, Kroger operates meat plants. King Soopers Meat in Colorado or Vernon Meat in California for example.
You act up like someone who knows something about the topic, but then you don't know that Kroger operates meat plants and factories for almost everything else.
You got me on King Soopers...forgot about them. But I've never heard of Vernon Meat and a quick google search yielded only a facebook page about the business with a last post from 2012. Assuming that they are a legitimate and still active meat vendor, it may very well be that 100% of their production is devoted to Kroger. They may even be operated as a subsidiary company under the Kroger umbrella. But they are still subject to the same standards and quality inspections upon receipt in a Kroger DC.
Whether it's Kroger, a Kroger brand store like King Sooper, or any other company, if the meat or any other commodity that is produced isn't up to whatever the grocer has identified for their standards, the vendor is stuck with it. If the vendor is a company that operates as a subsidiary of that grocer, the product rejection is handled via internal accounting entries between business units as opposed to checks being cut or invoices not being paid. But the vendor/arm is still stuck with the product and will look to resell elsewhere if possible, even if it is to the competition. There is some variety as it pertains to the extent with which this is done, but it is almost a universal practice across commodities. Speaking to produce (which is within my area of expertise), I know for a fact that if my company rejects a truckload of produce, the vendor will try to mitigate their loss and sell to other grocery chains before going down the line to other companies, such as ones that process it to be used in pre-made frozen items.
All companies will sell varying quality of product. You see the differences in packaging and ultimately pricing. As far as USDA standards, "Choice" isn't the highest category and there's more to it than that anyway.
It's absolutely nonsense that Aldi buys what is leftover. Aldi is not a low quality chain like save-a-lot or ruler foods. You really don't understand what Aldi makes successfull. The quality of the Aldi products in Europe is on the same level like name brand products and their meat and produce in on the same level like the meat and produce in conventional grocery stores. PLEASE explain why they should change their business modell for the U.S. market?
I've never been to Europe and I have no idea about Aldi's European business practices or how they stack up against European grocers so I won't comment on that other than to say there are many reasons for any company, regardless of the industry, to change their business model for operation on different continents.
Quote:
Originally Posted by sebastiannight
Aldi is cheaper because they need much fewer employees, Aldi sales per SKU, per sq ft or per employee is way higher compared to other grocers. Aldi stores are much smaller and they are not open 24/7. They handle just 1,500 SKU compared to about 30,000 SKU at conventional supermarkets. Aldi buys in much higher quantities (per SKU) than Kroger, Albertson or Publix.
Lower overhead costs for labor and facilities is certainly a large factor toward why Aldi's prices are lower, but it isn't the only one. You are also correct that a smaller number of SKUs can create efficiencies that translate to lower expenses, same concept as keeping a smaller menu at a restaurant. But product and vendor mix along with the associated quality of each option is another factor.
Quote:
Originally Posted by sebastiannight
Your imagination about Aldi is comparable to the one most Germans had in the late 70s. The perception changed in the 80s, mainly because of top ratings for Aldi products by independent consumer organizations. In Australia and UK the perception of Aldi changed very quickly, mainly because of award winning products. In UK Aldi or Lidl products often beat the premium products from upscale grocery chains. That stands in stark opposition to your outdated and misleading remarks about the quality at Aldi.
The perception of Americans about Aldi would change if independent consumer organizations would reveal that the quality of an average Aldi steak is better than the average quality of a steak from Kroger. Many Americans still believe in "you get what you pay for".
Look...I actually like Aldi. There is absolutely nothing wrong with the product that they sell and I really wish there was an Aldi out here in Phoenix. I shopped at Aldi for many years prior to moving out to Arizona 4 1/2 years ago. In early 2011 (the last time I shopped there), the quality and selection of their meat and many other products was also light years ahead of where it was even 10 years ago. I assume it's likely only improved further since then, and I suspect that many of the people who dislike Aldi are basing it off of an outdated impression. I agree that they stock many products that are just as good as conventional grocery chains. But unless they've completely changed how they brand themselves in the last 5 years, to pretend that all the products in their stores is on the same level as what is found in Kroger, Safeway, or any of the other larger changes is just ridiculous.
Last edited by sargeant79; 11-05-2015 at 11:37 AM..
I always found Aldi to have excellent products and amazing prices. I would get 99% of my food there each week, only going to another store occasionally for a specific item or brand they didn't carry. Never a complaint other than I wish they were HERE.
I don't buy meat, so that solves that problem!
Wow. They have a total of 8 spices, about 20 types of produce, and a super small less-than ideal frozen section. I love their (limited supply) of canned goods and an occasional bag of chips. But I for one could not possibly buy all of my items there.
Wow. They have a total of 8 spices, about 20 types of produce, and a super small less-than ideal frozen section. I love their (limited supply) of canned goods and an occasional bag of chips. But I for one could not possibly buy all of my items there.
I am just shopping for myself and never had an issue with getting most of my food there. I found plenty of produce for my needs including the best grapes I have ever had (green and red), multiple varieties of lettuce, apples, oranges, kiwi, tomatoes, asparagus (seasonally), and really good, cheap, bagged radishes that I can't seem to find in Phoenix at all. Radishes are expensive here for some reason IME!
I also miss the frozen section! So many great items in the wall freezer and in the bunkers like the big bags of stir fry veggies with sauce for like $3, or big bags of frozen fruit for half of what others stores charged. Oh and they had really good hummus and premade cole slaw and potato salad and bagels and English muffins...not to mention the wine...And I loved their brand of mayo...
Now I REALLY miss that store Hmmm...wonder what the next closest warm weather state is that has them? I might need to move again.
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Whatever Aldi's is, a place where it exists would be a much better place to discuss it.
Aldi is actually a pretty good store to compare to Winco in some ways. It's a smaller scale but a similar warehouse style shopping experience which is unique compared to other mainstream stores. The stores have more in common than Winco and WalMart or Winco and Fry's or Winco and Safeway, etc. IMO.
Someone described Winco to me as somewhat similar to a big Aldi when I first moved here, and it helped me to somewhat understand where they are in line with other food stores.
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....bagged radishes that I can't seem to find in Phoenix at all. Radishes are expensive here for some reason IME!
As a kid, I picked radishes (think a few thousand bushels). The radishes with the tops left on (wrapped in a rubber binder) are the freshest. When the tops get brown, the topper (tractor) came out.
As you might guess, I hate radishes. Radishes turned into a "meal" when I got hungry on some very long days. Those are some bad haunting memories! I diverge...
I've never been to Europe and I have no idea about Aldi's European business practices or how they stack up against European grocers so I won't comment on that other than to say there are many reasons for any company, regardless of the industry, to change their business model for operation on different continents.
Yep! Very true. They are not shipping food from Germany to the USA. Apple, orange comparison (no pun intended). Also, look at sebastiannight history of posts. 99% are grocery store related. 80+ have the word "ALDI's in it". I bet he works for them.
Yep! Very true. They are not shipping food from Germany to the USA. Apple, orange comparison (no pun intended).
That is correct. The home office is located in Batavia, IL and they source from around the world. They do have a higher percentage of European imports than most US chains but well under 5%.
One of their corporate trademarks is that they are extremely closed mouth about what companies produce their private labels. However, often, you can tell where they are sourcing by looking at the packaging and the country of origin. For example, a good number of their cookies are produced in Canada by Dare.
Yep! Very true. They are not shipping food from Germany to the USA. Apple, orange comparison (no pun intended). Also, look at sebastiannight history of posts. 99% are grocery store related. 80+ have the word "ALDI's in it". I bet he works for them.
LOL, I don't work for Aldi. Ridiculous assumption. As foolish as your assumption why Aldi don't has enter the Phoenix area so far. I am just interested in the grocery retail industry. The American grocery retail industry is way different from the European one. And it's interesting how Americans react to the discount grocery modell.
Food manufacturers in the U.S. can deliver all qualities. It doesn't matter whether Aldi shipps food from Europe or not.
Aldi uses exactly the same business model in the U.S. like they do in Europe. They have the same pros and cons like they have in Europe.
For example: produce is significant cheaper, but can be hit or miss, depending on the store, and employees don't pick out mushy clementines or bell peppers like in regular grocery stores.
Meat isn't really cheaper at Aldi. Other grocery chains have often better sales for meat. The big advantage of Aldi is probably the big price difference between the Aldi store brands and the name brands by similar quality.
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Hmmm...wonder what the next closest warm weather state is that has them? I might need to move again. 
