Limited-assortment grocery chains Aldi and Grocery Outlet Bargain Market are clobbering the competition in terms of foot traffic, and it’s not all due to the two chains’ expansion, according to a recent blog post by Placer.ai.
The chains, which are known for carrying fewer products than their competitors, have kept prices low through extensive use of private-label brands and fewer in-store amenities.
The strategy appears to be working, according to Placer.ai, which shows that while visits in the overall grocery segment grew 7.9% year over year in May, foot traffic at Aldi and Grocery Outlet Bargain Market was up 26.3% and 14.3%, respectively.
“Some of this foot traffic growth can be attributed to the two chains’ continued expansion: Aldi added dozens of new stores in 2023 — with hundreds more in the pipeline — and Grocery Outlet Bargain Market also significantly grew its footprint. But the average number of visits to both brands’ individual locations also increased, again outpacing traditional grocery, showing that their expansion is meeting robust demand,” the Placer.ai blog post noted.
The two chains also showed growth in loyalty rates — shoppers who made trips to the stores at least four times in a month — over the last three years. Nearly a third of shoppers at both chains fell into this category in 2024.
In 2024, 30.1% of Aldi shoppers and 30.2% of Grocery Outlet Bargain Market shoppers were classified as loyalty customers. That’s up from 28% and 27%, respectively, as of April 2022, according to Placer.ai.
“Increasingly, it seems, people are doing at least part of their routine weekly grocery shopping at these limited-assortment chains. And with consumers continuing to seek ways to save money, these grocers are well-positioned to continue growing their visit shares,” the blog post noted.
