The discount do-it-yourself store, Aldi, has seen some big growth this recession.  While other businesses are cutting back and continuing to layoff workers, Aldi is expanding.

Across the country, the discount grocery chain opened 80 stores this year. One hundred more locations are scheduled to open in 2010.  Managers say the success can be attributed to Aldi’s lean business model – small staff, no frills.

- The store only carries the top 1,400 most popular items – versus 40,000 or more at a traditional grocers.
- Shoppers rent carts for a quarter, and get a quarter back when they return their cart – eliminating the need for workers to do the task.
- Aldi stores are smaller in square footage
- The chain carries privately labeled products, you won’t see any name brands.
- Items are stocked in original cases on shelves, eliminating work hours spent on rearranging product.
- Shoppers must also buy their own bags – paper, plastic, freezer – if they didn’t bring their own.
-Customers have to bag their own groceries

Some shoppers, who enjoy the convenience of traditional grocery stores, say the Aldi model is not for them. Managers say the low overhead, and a little work on behalf of shoppers can save them up to 50% of their grocery bill.

Aldi, a privately owned company, won’t discuss its financial numbers but management says the store chain is doing well. Other discount stores have seen a drop in sales. Wal-Mart’s latest earnings data (for the quarter ending in July) shows sales fell by 1.4% from the previous year. Recent numbers for Target show an even larger drop, down 2.6% from the previous year, for the quarter ending in August.

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