Aldi Tells Suppliers to Cut Costs

Aldi’s U.S. encouraged suppliers to drive down costs, increase production of select items, bring operations closer to stores, and focus on sustainability, reports Reuters. The statement was made to hone the discount retailer’s competitive edge.

"I can't state the importance of reducing costs enough," said Scott Patton, VP of national buying at Aldi during its U.S. supplier summit.

In exchange, the grocer said during the event that it would help suppliers by establishing additional production lines, securing more supply contracts, and working collaboratively on business development, according to the report.

Due to the repercussions of inflation, customers are switching to less expensive private-label products, which is important for Aldi, where over 90 percent of products are private-label. The discount retailer is in fierce competition with rival grocers that are also expanding their private-label offerings, according to the report.

Aldi is in a state of expansion, planning to add 800 stores by the end of 2028. Full Story