Posted on 07/25/2026 7:09:15 PM PDT by Diana in Wisconsin
Bill Peterson used to go to Whole Foods or Kroger for fruits, vegetables and milk. Now, he swears by private-label chain Aldi, which sells those items at a fraction of the price.
The Chicago home remodeler is gainfully employed, but says the economy feels fragile. “There’s no job security … everything has gotten stupid expensive,” the 61-year-old said.
Inflation remained high for several years, and U.S. consumers became more focused on value. The shift transcends income class, and experts increasingly see it as the start of a deeper retrenchment in how Americans shop, eliminating a long-held stigma among some for private-label goods.
Inflation is just "an accelerant to fundamental shifts already set to unfold," said Sarah Henry, managing partner at Logan Capital Management.
Retailers adjusted by targeting the "trade-down" consumer — a category that includes cash-strapped shoppers who opt for lower-priced essentials, and wealthier consumers looking to save on discretionary items.
From January through May, value retailers grew sales 11.6% year-over-year, against just 2.3% for conventional retailers, according to researchers at NielsenIQ.
"Shopping smart has become a mindset, not a customer segment," Julie Barber, Walmart's chief merchandising officer, told Reuters.
Walmart, the nation's largest retailer, planned to increase the number of items under its "bettergoods" food label to almost 1,000. David Guggina, the retailer's U.S. CEO, said on an earnings call in May that the label helped Walmart attract new customers, particularly those with higher incomes.
RBC analyst Nik Modi in June wrote that private brands were elevated “from a defensive tactic to a core growth strategy," saying the trend is a "structural commitment rather than cyclical opportunism."
Aldi is betting that's true. The German chain, which has about 2,700 U.S. stores, is on track to open 180 more this year, and another 400 through 2028.
"High inflation or low inflation, high unemployment or low unemployment, there are always consumers who are looking to save more money," Scott Patton, chief commercial officer of Aldi's U.S. arm, told Reuters. "I think consumers have figured out they don't need national brands."
Amy Fox, a Cincinnati-area business owner, has enough disposable income not to worry day-to-day. Even so, as grocery bills rise — especially with three boys in college — life started to feel like "death by a thousand cuts," she said.
She shifted to using Midwestern supermarket chain Meijer for its private-label beef and chicken, which sell at much lower prices than at Whole Foods. "It just doesn't make sense anymore" to pay top dollar for such items, she said.
A fundamental shift
High inflation and sticker shock from rising energy and grocery bills are driving the hunt for value, said Dana Peterson, chief economist at research group The Conference Board.
However, industry experts see more fundamental factors at work — ones that could make trading down the new normal.
Consumers’ sense of the future was clouded by existential concerns like job loss due to the proliferation of artificial intelligence, while AI itself made bargain-hunting easier than ever, Henry said.
NielsenIQ researchers wrote that value retailers and premium retailers grew faster than mid-market stores, indicating consumers still splurge on specific items, which they called "a more intentional approach to spending." That trend was the same among low-, middle- and high-income households, NielsenIQ found.
Kroger executives said on earnings calls that private-label sales are growing faster than sales of national brands. The company told Reuters it was "investing in our price position in a disciplined way" to deliver "fresh, high-quality food at affordable prices."
Target's owned brands, which account for about 30% of its sales, will add 600 private-label food and beverage items over the next two years, a spokeswoman said, including 400 in its flagship grocery brand Good & Gather.
Dollar General said consumers across income levels prioritize value. The company will roll out new private-brand products and more than 70 back-to-school items priced at $1 or less, it said.
Having grown up without money, Peterson long avoided private labels, distancing himself from a category associated with poor quality. Not anymore.
“That stigma is pretty much gone," he said.
Ahold, owner of Stop and Shop, Food Lion, and Hannaford, is Dutch.
I discovered Aldi last week. It’s half as cheap as the local grocery and also substantially cheaper than Stop and Shop. You won’t find the usual name brands there. It’s a good place to pick up basics and essentials like milk and eggs. They also have unexpected, non-food, “Aldi finds.” I look forward to buying other food items there and finding out how good they are.
Europeans have different tastes, not necessarily worse tastes.
That would be Deutsch, like Pennsylvania Dutch/Deutsch. But you probably already knew that.
The thing with Aldi, like every where else that has store brand stuff... You have to try it once and see if it suits you or not. We buy 80 percent of our groceries at Aldi. For me it’s name brand soda pop I need. Same with certain condiments and flavorings. Some of the snack items at Aldi are great. I’ve tried several that were not good.
Yes, they can get long lines but their checkers are amazingly fast. And that’s mostly because they don’t bag your groceries.
I prefer to do my own bagging anyway. I worked in a grocery store back in the days when it was paper or.... paper. So I know what items do NOT mix in the same bag.
Yes, inflation is also nick named stealth default since the govt uses it to reduce the debt at our expense. Paying off old dollars with devalued dollars.
I shop at two stores- Kroger and Ingles.
Kroger has good value in their private label stuff and runs some great sales - a BOGO on tenderloins last week, and 3 for 1 chicken wings the week before that. I keep an eye out for marked down Private Label bread; I keep an extra loaf in the freezer.
I get home delivery for $60 a year, or about $5 a week. it’s very convenient and saves you from trying to shove a 12 pack of paper towels into the trunk -or carry in a 12 pack -it’s on your front porch.
Ingles is a regional chain based in Asheville. It’s the only place that has egg salad, banana pudding and a few other southern favorites. Plus, they make the BEST doughnuts.
Cheaper is not always better.
Aldi and Trader Joes are related in that one of the German Albrecht brothers owns/operates Aldi’s, and the other brother operates Trader Joes.
Why don’t Americans own all of the food distributors in America?
Maybe.
Maybe they improved by now, that was at least 30 years ago.
But I do not want to try again.
I just think, you get what you paid for.
I think I shopped at an Aldi store once. It was like a dollar general in terms of the quality of the food I did buy. Seemed that all the cheese was more like processed “fake” cheese (like American cheese) rather than real cheese. Some things were better priced, but since the store was a few miles from my home, I didn’t go back to try other things.
I do take advantage of sales on non-perishables like Triscuit crackers (my favorite) and things like that. Also meat and produce. But unless you plan on eating a LOT in short order (or have a big freezer), you really can’t be buying a ton of meat when it’s on sale.
I just gave Meijer’s a try - relatively new chain in my area. Better pricing on a lot of things, though not everything. Produce looks to be fresh, and the meats are decent. Not high-end butcher shop level, but above average for grocery store meats.
There’s a local chain, Heinen’s, in northern Ohio that is quite good but their prices are a little steep also. The other major brand, Giant Eagle, is being bought out by Kroger. Gone are the good old days of Rini’s Stop n Shop, which really catered well to the Eastern European clientele (and Italian as well) of the region. But there are smaller shops that sell some really good kielbasa and pierogis.
“I just think, you get what you paid for.”
Ditto.
As for meats, I buy pasture-raised protein from farmers who practice regenerative farming. Not buying meat that came from who knows where and is shot up with all sorts of hormones.
The girl I was going to work with said 'we'll go to Aldi's for the flour, sugar, choc chips, etc.' I asked her what that was...
I have gone there for groceries ever since!
We have 2 Meijer stores in our area, plus Schnucks stores, plus Aldi stores. Also Walmart stores. Aldi gets most of our business, but whatever we can’t get at Aldi we’ll get at one of the other stores. I drink unsweetened bottled tea, and all Aldi has is the sweetened stuff, artificial or with sweeteners. They do have a lot of good prices.
“Perhaps rich people steal more than those with less wealth.”
When I worked for a five-star resort in HI, our guest were people who are much wealthier than the wealthy people you hear about. (A Hollywood family — owned studios, IIRC — had five kids and brought their five nannies on vacation. One family had a croquet game, and a snack afterward. Their snack cost more than the car I had just bought.)
We’d watch the wives secretly (they thought) take food, items, etc., and sneak it into their purses.
Aldis isn’t made to “impress” - it gives great value for a lot of items. It’s worth the stop, even if you also go to another store for other items.
I find Trader Joe’s to be both better and cheaper than most t other grocery stores.
I go to Whole Foods for lunch. It’s much less expensive than Kroger.
One piece of pizza is $4.23 with tax. 550 calories. You can’t get anything at Kroger for that price.
LOL! He’s there for the free pretzels. ;)
“that could make trading down the new normal”
Get past the silly Trading Down nonsense.
Lots of products are priced for upper shelf image when in fact there are lots of other offerings that serve the purpose just fine.
More expensive is NOT always more better.
Sometimes folks just get stuck in a brand lock.
Keep in mind folks, lots of your favorite products living on their laurels ain’t the same product anymore.
Can you say “Private Equity”, or Corporate Takeovers?
Hellmann’s, Breyers, Entenmann’s, etc . .
the list is very long indeed.
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