Over 80 stores nationwide, faster expansion in East China: ALDI achieves 2.3x the sales per square meter of traditional supermarkets. Where exactly are hard-discount savings cut from?
It recently accelerated its pace in East China: Wuxi's second Baosheng Tiandi store opened on 10/24, Nanjing Qinhua's first store opened on 11/7, and it officially entered Anhui in 11, with Hangzhou's first stores launching by year-end. Earlier this year, in 3, it opened its 100th store in China in Shanghai.
How did ALDI expand against the headwinds affecting traditional hypermarkets? The answer lies in its business model, which operates almost in reverse of conventional supermarkets.
Shanghai launched China's 100th location, with 50 new locations added this year.
Average annual sales per store: approximately 3600 ten thousand yuan
Private label share is approximately 90%
1. Set the expansion pace first: secure the supply chain, then open stores.
Many retailers expand by opening stores first and filling inventory later. Aldi does it the other way around—Warehousing and supply chain first; stores follow.
2 26, ALDIWuxi Distribution Center Officially Openspaved the way for future expansion into Wuxi, Nanjing, and Anhui; on 2 month 28, Suzhou opened its 6 store simultaneously (setting a new record for same-city multi-store openings), bringing the total to 11 stores in Suzhou; the first Wuxi store opened in 6 month, with two more locations launched within six months; the Baosheng Tiandi store in Wuxi opened on 10 month 24, the first Qinhua store in Nanjing on 11 month 7, entered Anhui in 11 month, and launched its first batch of stores in Hangzhou by year-end.
Store-side encryption is also evident: Shanghai added 6 stores on 2/27, expanding from local communities to core business districts such as Nanjing West Road, Xujiahui, and Lujiazui. The total number of stores grew from over 60 at the beginning of the year to more than 110 by year-end.
2. Where do hard discounters cut costs?
Dissecting Aldi's business model reveals that it doesn't undercut traditional supermarkets on just one front, but ratherReworked the cost structure for every link in the chain.This explains why its private label share can be kept around 90% and its sales per square foot reaches 2.3 times that of traditional supermarkets.
Traditional hypermarkets carry tens of thousands, even up to 20,000–30,000 SKUs. ALDI caps its entire store at 2000 SKUs, typically offering just 1–2 items per category, with a maximum of 3. Fewer SKUs mean significantly higher purchase volumes per item—For factories: "Give me long-term, stable, high-volume orders, and I'll give you the lowest factory price."。
Fast-moving single SKUs, high inventory turnover, and reduced waste from near-expiry items, storage costs, and capital tie-up. ALDI achieves daily sell-through for select bakery and fresh produce through a focused, high-quality assortment.
ALDI operates in China.13 private brand seriesCovers baking, fresh produce, snacks, beverages, and general merchandise. Private label products account for approximately 90%. With no intermediaries and no need to shoulder massive marketing and channel costs like major brands, the savings are passed directly to customers as lower prices.
In 2026, it also launched the "Value Series".700: Long-term price reductions on multiple products, where over 600 items are priced below 9.9 yuan; meanwhile, basic baking products are offered at "over 10 yuan for 8 pieces." This strategy of anchoring low-price expectations is a hallmark of hard discounting.
The "hard" in hard discounting also means extreme control over operating costs: stores are typically 500-1000 square meters, with simple interiors and products displayed directly in their original packaging to reduce labor; employees handle multiple roles, and self-checkout is common.Reduce labor cost share to approximately 4%(Much higher than traditional supermarkets).
The savings are split between price reductions and retained profits—allowing it to simultaneously deliver "affordability" and a "healthy single-store model."
3. It's also undergoing a "Chinese-style transformation," not simply copying Germany.
It's important to note that ALDI in China did not simply replicate its German warehouse-style hard discount model. To better serve Chinese consumers, it made significant local adaptations:
IV. Implications for Chinese Supermarkets: What We Can Learn and What We Cannot
Hard discounting isn't "storewide sales"; it's a cost structure.Regional supermarkets don't need to copy ALDI, but there are a few things they can start doing right now:
The core of Aldi's story over the past few years can be summed up in one sentence:Low prices aren't the goal—they're the result of an efficient, end-to-end operation.
90% private label, 2000 SKUs, 4% labor cost — supply chain first. Individually, each figure seems modest, but together they create a cost structure that traditional hypermarkets struggle to replicate.
While the industry debates whether to adopt hard discounting, ALDI has already written the answer on its shelves—with store number 100, a sales per square foot ratio 2.3 times higher, and a distribution network now expanding across East China.