Aldi takes page out of Costco playbook

The discount grocer is using a proven strategy to offer customers great value.

May 3, 2025 - 13:42

There's a reason so many people are willing to pay an annual fee to shop at Costco.

The warehouse club giant is known for delivering exceptional value to its customers. And the savings people enjoy at Costco can more than make up for the cost of a membership.

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Another reason customers love shopping at Costco is that it can feel like an adventure of sorts. And that's not just because of the sheer size of its warehouse club stores.

When you walk into Costco, you never quite know what you're going to get. The company is constantly changing its inventory, with the goal of introducing appealing new products.

Even if you're a regular Costco shopper, you might one day discover a whole new section of the store you didn't know existed.

Aldi takes page out of Costco playbook.
Image source: Shutterstock

Costco is intentional with its inventory

Another reason members love Costco so much is the store's commitment to quality products on top of low prices.

Costco knows that it's not enough to offer the lowest prices in town. It also needs to sell products that members are going to be happy with.

To this end, Costco makes a point to limit its inventory to about 4,000 SKUs (stock keeping units). This allows Costco to have better quality control. Plus, it gives the company more negotiating power with suppliers, which helps with pricing.

The decision to add products to its lineup is also one Costco needs to make carefully. But the company understands the importance of putting new items on its shelves on a regular basis.

A big part of the Costco experience is the aptly-named treasure hunt.

The company's management team loves the idea of people coming in for a few key grocery items and coming out with $300 worth of purchases. But it also knows that the thrill of seeking out new finds is a big reason shoppers keep coming back.

Aldi mimics Costco's approach to inventory

At a typical supermarket, customers might find anywhere from 15,000 to 50,000 SKUs. But Aldi, like Costco, intentionally keeps its selection much smaller, and for similar reasons.

Aldi typically stocks around 1,400 to 1,600 SKUs, which is even less than what shoppers will usually find at a Costco store. Granted, Aldi largely limits itself to groceries, whereas Costco's reach extends into broader categories like apparel and electronics.

But the Aldi shopping experience has some key similarities to Costco that make it a draw.

Aldi, like Costco, imposes high quality standards on the products it carries. The overwhelming majority of products sold at Aldi are exclusive brands customers won't find anywhere else.

By limiting its inventory, Aldi, too, gains negotiating power. This allows it to keep its prices competitive.

Aldi's approach to inventory is also reminiscent of the famous Costco treasure hunt.

Aldi is continuously bringing new products into the fold. And there's perhaps no better example of that than the Aldi Finds aisle.

Dubbed the Aldi Aisle of Shame, that section of the store features a rotating selection of non-grocery products, from home goods to seasonal decor. The Aldi Finds aisle is known for its low prices and, like Costco, has a tendency to lead to bonus or impulse purchases beyond a traditional grocery list.

But it's that very aisle, combined with Aldi’s low prices, that keeps customers coming back. And clearly, Aldi’s strategy is working.

More Retail:

Aldi is in the midst of a major expansion into new markets across the country. It plans to open 225 new locations this year alone.

By taking the same successful approach to inventory Costco has, Aldi could further solidify itself as a supermarket powerhouse.

Maurie Backman owns shares of Costco.