1. Aldi and similar stores offer different customer experience. Do you think a similar business model could work in other industries?

According to a recent study by Nielsen,* consumers used to prefer stock-up visits, but 46% of them view shopping as a chore.
The one-stop shopping experience that had taken most of the world by storm a couple of decades ago is changing and Aldi, a German supermarket company, is pioneering the way. Stores like Aldi focus on efficiency and challenge the traditional supermarket model, which operates on thousands of square meters and offers a wide variety of choices. Aldi caters to the needsbased shopping clientele who prefer making frequent visits to a store rather than stocking up during one visit. Aldi leads the way for the increasing number of companies that are developing business models to appeal to this segment of customers.
Founded in 1946, Aldi is a discount grocery chain that has gained substantial ground because of its operations management.
The company currently has more than 10,000 stores in 17 countries across Europe, Australia, United States, and, most recently, China. The company has been developing its successful business model for decades—splitting operations in Germany between Aldi Nord and Aldi Süd in 1960 and 1962, respectively, and expanding its international operations since 1967.
As part of its business model, Aldi generally operates on 1,000 to 1,500 square meters of space,† compared to the approximately 4,000 square meters space utilized by traditional supermarkets.‡
Sites to accommodate smaller stores are easier to find close to target locations like city centers; this eliminates customers having to travel great distances for grocery shopping and encourages frequent visits.
The smaller store size also naturally reduces the number of products that can be offered. But then again, who needs 35 different types of ketchup to choose from? Aldi carries only a few variants of each product, sometimes limiting the choice to one. This approach reduces the total number of products carried to approximately 10–15% of traditional supermarkets’ selection. This enables for more efficient inventory management because planning and forecasting for one or two products, instead of dozens, is easier and reduces the chance of stock-outs (shortages) and products exceeding their shelf life. For most small stores, this also reduces the hassle restocking the shelves. This, however, is not a problem for Aldi. For many products, Aldi’s suppliers ship them in boxes that can be kept on the store floor as it is and customers can select the product they want from the boxes. While the improved efficiency may not be immediately obvious, these measures allow for fewer employees working in each shift, with many of them being able to move between stocking shelves and managing the cash register as needed.
In addition, Aldi’s reliance on its own exclusive brand products reduces overhead costs and increases efficiency of management while still providing quality products, which makes it highly competitive in a cut-throat industry. It also builds brand awareness and, as the sole supplier of such products, increases customer retention