Why Does Aldi Close So Early?

If you've ever visited Aldi early in the morning or late at night, you probably frustratingly encounter a closed sign at the front of the store. It would seem in the grocery world that Aldi is neither an early bird nor a night owl. The store both opens late and closes early.

Depending on your store's location, Aldi either opens at 8:30 or 9 a.m. and some locations open earlier on select days. This was a COVID-19 pandemic change that carried over, allowing at-risk customers to shop at times when the store isn't expected to be as busy. As for closing, these times vary as well. Some Aldis through the United States, including those in California, close at 9 p.m. However, 8 p.m. seems more common, especially on the East Coast in states like New York. You'll come across some stores that close at varying times between 7 and 9 p.m., which seems to be the latest that Aldi stays open in many locations.

There's a simple reason why Aldi closes so early. It's all to do with saving operation costs, which helps ensure the grocery chain keeps things cheap. Keeping things lean allows the grocery chain to save money.

Read more: The Best Grocery Store In Every State

Operating During Peak Hours

If you've ever taken a closer look at Aldi's hours of operation, you'll notice that the store is open during peak hours. These are the hours the highest volume of customers will likely be shopping. In particular, customers are more likely to visit grocery stores in the afternoon after work, starting around 4 p.m. and lasting until around 6 p.m. The weekend is also a busy time for grocery stores. Comparatively, customers start winding down as the afternoon progresses into the evening, making 8 p.m. a slower period for shopping. The opposite occurs during the morning; customers slowly trickle in around 8 or 9 a.m., with the midday being the busiest.

Aldi can maximize its profits compared to its operational costs by cutting back hours and only being open during the middle portion of the day. Grocery stores generally operate at a profit margin of only 1-3%. To turn a profit, they must turn over a large number of items to stay lucrative. In layman's terms, Aldi needs to sell a lot of groceries to remain in business. Focusing on when the store is at its busiest allows the grocery chain to keep its costs down.

Aldi Compared To Other Stores

While it may seem like 8:30 p.m. is early, you'll find that Aldi's hours aren't that different from some of its competition; for instance, some Costco locations also close at 8:30 p.m. on weekdays and 6 p.m. on weekends. Meanwhile, Trader Joe's, which Aldi Nord owns, closes at 9 p.m. at many locations as well. When it comes to staying open late, Walmart remains the king -- staying open on average until 11 p.m. But Walmart has even changed from 24-hour operations in a post-COVID-19 world.

In recent years, Aldi has garnered a reputation with shoppers thanks to its consistently low prices and discounts. In some instances, the grocery chain is even cheaper than Walmart (although Walmart's overall discounts may save you more money). Operating at a lower cost may be one of the ways that the grocery store stays affordable while competing against the other heavyweights in the grocery industry. According to Market Watch, Aldi can stay cheap by cutting out non-essential services, which means shutting its doors earlier than some of its competition.

Read the original article on Daily Meal.