The 5 keys to Aldi’s private label success

Commit to quality: Rinaldo emphasized the importance of a relentless focus on quality. Aldi samples 35,000 items every year and believes that quality should always be the driving force behind private label products.“If you’re tempted to cut corners on quality to boost your margins or hit a price point, don’t do it,” he told the packed house in the Regency’s Grand Ballroom. “We, as an industry, must prioritize quality above all else and ensure that private label products always meet the highest standards.”

Innovation needs to be constant: Rinaldo highlighted that the era of “boring” private label products is over. The key is to engage and excite customers through innovation and quality. “When you combine excitement with pricing and quality—that’s where the magic happens,” he said.

Always work to lower operating costs: Rinaldo stressed the need for retailers to continually reduce operating costs and reinvest the savings into their businesses. “We must drive that value gap as far as possible,” he said. “When we do that, we win. The volume increases, the customer wins, and everyone benefits because that flywheel of investment keeps reinvesting everything we have into the business.”

Be straight with customers: Rinaldo encouraged grocers to be transparent with their customers, and noted that today’s consumers are smart and have long memories. Short-term tactics like altering product sizes or prices might win a transaction in the moment, but over time, they damage trust.“At Aldi, we have a fanatical customer base,” Rinaldo said. “I believe the main reason for that is that our customers trust us. And when you earn that trust, amazing things can happen.”

Put shoppers at the center: Rinaldo reminded the audience that customers should never be taken for granted. The easiest thing for them to do is switch back to national brands.“We must deliver on price and quality every single time,” he said. “That’s absolutely critical.”