by Eric Lendrum
A German discount grocer has seen an increase in business from American customers over the last year, as inflation remains stubbornly high and presents an ongoing threat to Americans’ financial security.
The Daily Caller reports that Aldi, the German-based grocer, saw a staggering 26% increase in foot traffic at its store in March compared to March of 2023. This rise far surpassed increases at other popular grocery store chains, including the 6% year-over-year increase at Kroger and the 15% increase at Trader Joe’s.
Prices rose 3.5% year-over-year in March, and have risen by 18.9% overall since Biden first took power in January of 2021.
By comparing Aldi to other stores through a measurement of a basket of 50 of the most common items purchased by Americans, the chain’s prices were approximately 6% less expensive than Walmart’s prices in the first quarter of 2024. There are at least 2,400 Aldi locations in the United States, with more being added after the company’s acquisition of about 400 Winn-Dixie and Harveys Supermarket locations.
One of Aldi’s methods for keeping prices lower is reducing operating costs by carrying only about 2,000 different items, as opposed to the 31,000 items carried by the average supermarket. This leads to the stores themselves being physically smaller, thus reducing their rent costs, as well as lower purchasing costs as a result of bulk buying.
Aldi has added 100 stores every year for the past 10 years, with plans to add 800 more across the U.S. by the end of 2028.
As inflation remains high, grocery prices remain one of the most painful aspects of the ongoing economic crisis. The average debt held by Americans continues to rise, with total debt for American households increasing by at least $212 billion in the fourth quarter of 2023, reaching a new total of $17.5 trillion. In the same period, credit card debt reached a new record high of $1.13 trillion, compared to just $50 billion in the third quarter of 2023.
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Eric Lendrum reports for American Greatness.
