Aldi is marking a quarter of a century in the Irish market.
The German supermarket that brought us speedy checkouts and the middle aisle first opened its doors here in 1999.
The supermarket chain now has 161 Irish stores which serve more than 70 million customers each year.
Aldi says it is on course to serve its one billionth customer in Ireland in 2025.
![An Aldi supermarket in Dublin city, 28-11-22.](https://media.radiocms.net/uploads/2024/06/07205040/Aldi-sign-in-Dublin-city-centre.jpg)
University of Galway Director of MSc in Consumer Psychology Dr Denis O'Hora told Moncrieff it's not an easy market to crack.
"Their chances of penetrating the Irish market were pretty low," he said.
"Retail is one of the toughest businesses out there and it's more characterised by consolidation than by disruption.
"They got in through the German model of efficient shopping where they used low-cost as their way in".
Pricing and curiosity
Dr O'Hora said the company also had items advertised as being 'limited' in variety.
"[It started with] mostly their own brands and they gradually added known brands to that mix over the years," he said.
"It's a very interesting model and it was nothing like what we had here at the time".
Dr O'Hora said people generally are curious when prices are lower.
"Anytime something's low priced we have that concern: what corners have been cut to give me this price?" he said.
"At the same time low-cost is a way to encourage consumption and to encourage exploration.
"Once people started to try some of the brands - sometimes sneaking in and not telling anyone - they gradually lured people in.
"Some people were closeted Aldi shoppers a long time before they admitted it".
![An Aldi sign next to a supermarket in Rathmines in Dublin, 20-3-23](https://media.radiocms.net/uploads/2024/06/07205334/Aldi-Rathmines.jpg)
Dr O'Hora said Aldi can keep its costs lower on a number of fronts.
"A lot of it is the amount of produce that they buy, they buy in huge bulk, and they also limit their variety," he said.
"You might go to another retailer and expect it to have 10 brands of baked beans, they didn't go that way.
"One of the features that characterises both Aldi and Lidl are these bold decisions that really are ahead of where the consumer are at".
'Limiting variety'
Dr O'Hora said consumers don't always know what they want so Aldi gave people "what we need even before we wanted it".
"By limiting your variety, that gives you greater purchase power with the suppliers that you're working with," he said.
"You don't always want variety - if you want to get in and out and get your shopping done, and you know what you want - you don't really want to be distracted by a range of things.
"What's interesting about Aldi though is that they mix that.
"They also have the famous middle aisle that we all joke about - that is more the want, the discovery, you don't know what you're going to find there."
Dr O'Hora added that the middle aisle "explores a different part of consumption".
Aldi says its economic contribution to Ireland in 2023 was €757m as the retailer spent €1.1bn with Irish suppliers.
The retailer reported a 58% increase in purchases from Irish suppliers since 2019, and Irish suppliers now account for almost half of all sales at Aldi.
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