Discount supermarket Aldi opens its first store in Ann Arbor

Posted on Fri, Nov 20, 2009 : 4:56 p.m.

Discount supermarket Aldi opens its first store in Ann Arbor

By Angela Smith

Aldi. I remember Aldi. I used to shop there as a poor college student. I remember it as a bare-bones grocery store with loads of basics and junk food with very low prices. Not a place I imagined much of a market for in Ann Arbor.Â

But since those days of ramen noodles and frozen foods, I have learned a little something else about the discount supermarket that opened this week in Ann Arbor. The info is thanks to the researchers at Freakonomics (who also taught me what baby names to avoid lest I chose a name at the bottom of the socioeconomic ladder).

Thousands of shoppers have arrived in the past three days to welcome Aldi Supermarket to Ann Arbor.

angela smith | contributor

Aldi is owned by two German brothers, Theo and Karl Albrecht. What else do these brothers own? Trader Joe! Trader Joe - a mecca for well priced organic and specialty items, is an Ann Arbor staple. I have friends who travel 30 minutes to pick up their weekly needs at Trader Joe. And rumor has it that many of the store branded items at each store are the same products just relabeled.

So today I was looking forward to checking out Ann Arbor's new Aldi located at Dexter Road at North Maple Road.

More than just groceries are available at the warehouse style store. Many holiday gift items were displayed down Alid's center aisle.

angela smith | contributor

As a strategy to avoid long lines, I waited until mid-afternoon to make my way through the supermarket, a move that cost me a reusable bag full of freebies and did not help me to avoid any crowds. The parking lot was enough to make me want to turn around and find the exit, but I am glad I didn’t.

The prices at Aldi are to die for. A fellow shopper and I were in awe of the ridiculously low prices on wine - something that I have also marveled at in Trader Joe. I asked her if she thought it was safe, and she talked me into trying a bottle of Malbec, my favorite red, for only $3.99. Other shoppers were bustling through the aisles with their quarter rental carts a masse with $1.49 milk, 49-cent baby carrots, and killer deals on many Thanksgiving staples.

Bargains are certainly the niche that Aldi holds. And in today’s economy, I noticed that I was not the only one eager to welcome low grocery prices to Ann Arbor.

Lead Shopping Blogger Angie Smith will hunt for deals and dish on the latest in retail in Ann Arbor. Readers will attain notices of great deals, and store happenings in and around the city. To report a news item or tip contact her at angieannarbor@gmail.com

Comments

Monica Milla

Fri, Dec 11, 2009 : 4:18 p.m.

Aldi is not about loss leaders or exploiting workers world-wide. Aldi has low prices because of volume, volume, volume. Yes, the stores aren't huge but there are thousands of stores around the world, and Aldi sells largely only its own store brands. Also, because of their shopping cart system, no one has to be paid to collect carts. Items are also not individually priced, which reduces more labor costs in that writing one price sign takes a lot less time than marking individual items. You also bag your own groceries and bring your own bag, two additional cost savings. The person who wondered about items in the middle rows, this is not temporary. All Aldi stores are set up the same way and have been for years. There are dozens of Aldi stores around Michigan, including Canton, Wayne, Dearborn, etc. It's only new to Ann Arbor, but not to MI, the US, or the world. Sometimes, it's good to leave Ann Arbor and get some perspective!

Angela Smith

Mon, Nov 23, 2009 : 1:45 p.m.

essene -- I too was outraged by the freakonomics stance on how to magically solve global warming. I know part of their draw is their sense of humor, but c'mon!

essene

Mon, Nov 23, 2009 : 10:27 a.m.

Angie, Interesting article. My only comment is on Freakonomics, the very same guys who discount global warming. They want to hang a 90,000 foot long fire hose into the upper atmosphere and spray SO2 out to cool the earth in case it does warm too much. Adding SO2 to air makes H2SO4-rich water droplets, so guess how long that hose will last. The idea that a tube with any weight will maintain a stable orbit has to be crazy, and the weight of the hose will cause it to break. They are self-described as cold-hearted economists, but I would use more pejorative word instead. Eric Essene

julieswhimsies

Sat, Nov 21, 2009 : 3:53 p.m.

NOOOO scooter dog! We DON'T need another Walmart. The idea makes me gag.

Angela Smith

Sat, Nov 21, 2009 : 2:04 p.m.

shepard145, Aldi operates on a bare bones warhouse style system, which means customers are responsible for returning their carts and self-bagging their groceries. This and the minimalist presentation of goods is one way they keep prices low. If you try to use reusable bags anyhow, it's not that big of a change; you just want to return your cart to get your quarter back. Many times people end up passing the cart to the next customer as a courtesy. Karenz, the aldi website speaks to their philosophy, http://aldi.us/us/html/company/Our_Philosophy_ENU_HTML.htm?WT.z_src=main

Angela Smith

Sat, Nov 21, 2009 : 1:52 p.m.

Red Star, I love the idea of grow your own, we had so many tomatoes this year that my kids tried to sell them to neighbors for 10 cents a piece. Auntiemmmm, I am also digging to find some answers about pricing in relation to quality here, but both Aldi and Trader Joes keep their negotiations quiet. I do not think it wise to assume low price means someone has to suffer. It is not always true.

Angela Smith

Sat, Nov 21, 2009 : 1:47 p.m.

Kristine, Yes Aldi did have a small selection (3 or 4 beers, less than a dozen wines) of alcoholic beverages, though I am not sure if this is just a seasonal offering. North Maple, The selection of merchandise is not season, but I did pick up their wish book, and would not be surprised to see Black Friday Deals.

fishnmagician

Sat, Nov 21, 2009 : 12:52 p.m.

auntiemmmm - You're talking out of both sides of your mouth. First, producers seek out Aldi and their distribution methods. The price is negotiated, not jammed down their throat. As far as cost, that comes from marketing and transportation. They are experts at both with store brands. Second, " crazy rules"???, can you think of a better way to reduce costs? You only use your $.25 and get it back unless your too lazy to return the cart.

karen z

Sat, Nov 21, 2009 : 12:27 p.m.

Hymmm... wonder if the employees are union? Wonder if they treat women equal or discrimiinate? Wonder if they contribute to the local community like Meijers & others do? Wonder if they'll put local supermarkets, who are already hurting in this economy anyway, out of business, then raise their prices? And bringing your own bags is the moral thing to do. The trees and oceans thank you. -Karen

shepard145

Sat, Nov 21, 2009 : 11:19 a.m.

One of my girlfriends had some Aldi news insert with a list of crazy rules ranging from 25 cent deposit for grocery carts to something about bringing my own bags. If true, forget it. I'll try them once but I'm not tolerating eco nonsensical gibberish pushed by a grocery store.

auntiemmmm

Sat, Nov 21, 2009 : 11:08 a.m.

I considered the lower prices and the way Aldi achieves these prices and tried to find out where they get their food.....couldn't find out. Anybody know for sure?

scooter dog

Sat, Nov 21, 2009 : 10:56 a.m.

How about building another WALLMART

Ruth

Sat, Nov 21, 2009 : 9:42 a.m.

Very low prices that bring people into the store are called "loss leaders". While the store loses money on this item they make it up because of bigger margins on the other items. Since ALDI has a higher percentage of store brands with their higher margins they and the farmer workers are not affected by the low prices on a specific item. These extra low prices could also be considered marketing costs on the new store and not included in operating margins.

RedStar

Sat, Nov 21, 2009 : 9:17 a.m.

I can't help but feel you are missing a huge issue with this store and it's "quality" prices. IT COSTS MONEY TO PRODUCE FOOD. If it doesn't cost money to buy food, the costs are being passed on to other places. Your 1.49 milk and 49 cent baby carrots are sure to be associated with underpaid and abused farm workers, miserable cows, and environmental pollution. It's time to start being responsible about food. Or, better yet, grow what you can on your own!

auntiemmmm

Sat, Nov 21, 2009 : 8:18 a.m.

I decided to check-out Aldi yesterday at about 9:30. It was crowded especially at the back of the store. The prices were outstanding-eggs for.69. I will go back for the Thanksgiving things I need. I still had to go to Kroger to buy some of smaller quantity groceries, ie. a quart of milk(Kroger was unusually empty for a Friday morning). Aldi only had gallons. The store seems small and the cart area is a little hard to navigate but I was encouraged by the pricing and as I said, will be back.

Otto Mobeal

Sat, Nov 21, 2009 : 7:32 a.m.

Aldis also had beer. I think I only saw one or two names. A german input caught my eye.

Old West Sider

Sat, Nov 21, 2009 : 12:45 a.m.

The Aldi stores in Germany are similar to the Meijer stores in this country, they sell much more than just food.

Paula Gardner

Fri, Nov 20, 2009 : 10:13 p.m.

I don't know of any stores that have committed to the additional spaces, but will try to find out next week. I suspect that, given the financing situation, construction won't start until at least 80 percent of the space is leased, which will be tough in 2010, based on projections that I've seen. But if the store is successful... and lending loosens... and retail strengthens a bit, it could happen. I heard an Aldi commercial on the radio on the drive home Thursday night and it caught my ear because it was so similar to recent Hiller's ads. I wondered if that was deliberate.

NorthMaple

Fri, Nov 20, 2009 : 9:38 p.m.

Since I live close to this location (big surprise, considering my username), I gave it a try, expecting very little. I will say I was very pleasantly surprised, and although almost every single product is a store brand, everything I've tried has been of excellent quality. And at such reasonable prices! I do think that it is a mistake for them to carry merchandise at the center of the store, however. I don't know if it is only a holiday gift area, but I wouldn't doubt it if they completely phase this area out in favor of more groceries. It feels a little out of place, and nothing was a good enough deal to justify buying it there instead of your usual retailer. AnnArbor.com staff, has anyone purchased space in the yet-to-come "Maple Shoppes" that will share the corner with Aldi? They have yet to even build the proposed outbuilding, so I assume there are few takers, if any.

Kristine

Fri, Nov 20, 2009 : 7:28 p.m.

Thanks for the info, Angela -- I thought that, according to ALDI's website, this store would not be carrying beer and wine. Based on your report, I know now that they at least sell wine.