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Re:Aldi, a brutally efficient grocery chain, is upending Ame... by NeedMoreTea on Friday May 17, 2019 @05:22PM (#19943688)
> -they combine varieties (like flavors of granola bars) of product in the same box. This greatly reduces the shelf space required.

This is the only thing that fails about Aldi. Let's say you want their Chicken Tikka sauce. The mixed boxes mean good chance you won't see it as Tikka always goes first. You go through the whole 6 boxes of inventory, and yep, all sold - the three spaces in every box. Same for pizza - one always goes first. They don't restock until there's space for another combined box.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Friday May 17, 2019 @05:35PM (#19943789)
This looks related to something that's mystified me for years about Safeway.

Background:

- Safeway rotates every product through "sale" and "full price" periods. It's a strictly calendar-based thing; every sale price is going to recur if you wait, and every product will spend a lot of time at "full price" and a lot of other time at two or three different "sale" prices.

- Triscuits come in a variety of special flavors.

All triscuit varieties go on sale together. If triscuits aren't on sale that week, you can get whatever flavor you want. But if a sale has happened, the Parmesan Garlic flavor is probably sold out. This happens, reliably, every time triscuits go on sale, and affects only the Parmesan Garlic flavor. To get that flavor at a sale price, you need to be in the store near the beginning of the sale period.

To me, the diagnosis is obvious: Parmesan Garlic is more popular than every other flavor, and Safeway should stock more of that flavor than they do of other flavors. But though I've observed this for years, they don't. All flavors get the same shelf space, Parmesan Garlic always sells out quickly, and Safeway appears to be happy to forgo the lost sales of Parmesan Garlic triscuits that they could have made if they'd just had them in stock.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by c3534l on Saturday May 18, 2019 @12:10AM (#19945540)
I used to work at a grocery store deli. Every week, without fail, we'd sell 75% yellow American cheese and 25% white American cheese (and that's being generous to the amount of white we sold). I asked my boss why we didn't just buy more yellow than white instead of buying exactly one box of white for every box of yellow and she just got mad and said "what, you think you can do my job better than me?"

I still deeply want to know this mystery. It's obvious to anyone who works at a grocery store that certain items are way more popular than others, but grocery stores buy way more variety than makes sense. Maybe it's for appearance in some cases, but no one can see how much American cheese we have stocked at the deli counter, and it's true for the stuff stored in the back of the warehouse, too.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by iforgotpassword on Saturday May 18, 2019 @04:18AM (#19946328)
My sister used to work at a super market. One of hey colleagues was tasked with checking the inventory and then restock. My sister saw how her colleague clearly saw that they still had 5 boxes of white chocolate and only 2 of the regular one (I don't remember the actual product but it doesn't matter). Her colleague ordered 3 white and 2 regular. "why the heck are you doing this? Obviously there is more demand for the regular one!" My sister exclaimed. "well I like white chocolate better!" Her colleague explained.

So I think it's absolutely possible you could have done your boss' job better. :-)

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by lugg on Saturday May 18, 2019 @01:16AM (#19945807)
Probably caused by decouling between buy price and realised sell price.

You might also find the white is partly a byproduct that needs to be made no matter what.

And this brings me to what also is truly good at, they own the full chain and leverage it.

There are certain products I notice that only come in stock some years and it seems like they're made out of excess produce.

I.e. a cereal I like is made entirely out of these chunky things that usually go in as additives to other cereals. It looks like they only stock it when they have a cheap wheat price.

Another one is the nut bars and what kind of fruits they have mixed in.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by tw04 on Saturday May 18, 2019 @02:07AM (#19945955)
>You might also find the white is partly a byproduct that needs to be made no matter what.

White is literally the color of the cheese. The "yellow" has food coloring and "flavor" added.

https://en.wikipedia.org/wiki/American_cheese

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by Zarel on Saturday May 18, 2019 @03:58AM (#19946288)
I assume this is a metaphor. But even for products that _are_ byproducts, it seems like the correct solution is to sell the less-popular one at a lower price.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Saturday May 18, 2019 @04:04AM (#19946301)
Or... not buy it, as c3534l suggested. The fact that I produce egg whites and egg yolks together doesn't mean everyone who buys my whites is obligated to also buy a proportional quantity of yolks. That would defeat the whole purpose of separating them in the first place.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by lugg on Sunday May 19, 2019 @01:39AM (#19951645)
It wouldn't defeat the purpose at all but it is along the lines of the point I was making.

The yolks are a by product no matter what.

There was an interview on the Daily show or last week tonight where they made fun of a guy eating a plate of fried eggs that looked like 5 yolks and 2 egg whites. My guess, the dinner sells a lot of eggwhite omelettes and makes use of the extra yolks as another option for other people to buy.

In the supermarket scenario, the supplier only has one customer and has to somehow make them buy both no matter what.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by Griffinsauce on Saturday May 18, 2019 @03:30AM (#19946211)
The "cheese" part is also questionable...
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by jacquesm on Saturday May 18, 2019 @04:48AM (#19946393)
> we'd sell 75% yellow American cheese and 25% white American cheese

Both are terrible. If there is one thing I really missed on the other side of the Atlantic it was the European quality and variety of cheese.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by trophycase on Saturday May 18, 2019 @11:15AM (#19947859)
Go to a real grocery store. If you're shopping at any of the "name brand" grocery stores you're not going to get that much of any quality. Local coops and "high end" grocery stores generally have a great selection and often they have someone working there to help you understand and select cheeses.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by barbecue_sauce on Saturday May 18, 2019 @08:05PM (#19950470)
Am I the only person who likes both American cheese and more complex artisanal european cheeses?
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by stjohnswarts on Sunday May 19, 2019 @03:05AM (#19951883)
Nothing beats a hamburger with fresh chopped onions, american cheese, mustard, and pickles on a brioche bun. I will fight over that.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by HeWhoLurksLate on Friday May 17, 2019 @06:13PM (#19944094)
So, to sum up these complaints- retail companies have a lot of data at their hands- they just need to look at it and do something with it.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by GCA10 on Friday May 17, 2019 @08:05PM (#19944725)
Safeway's use of data is comically bad.

Since 2010 or so, I've been signed up for their Just4U special discounts, based on what they know about my shopping habits, as a California dad. Recently they offered me a bonus coupon for Pampers diapers.

Not a match! Our kids have been out of diapers since the days when BlackBerry was the coolest phone in town. Maybe longer. I'm not impulse-buying diapers for anyone else's kids.

They let a week go by and then offered me a special deal on Depends, the old-people's diapers. Not in my current need list either.

Another week goes by, and they come up with a third idea. This time it's a discount coupon for Kotex sanitary napkins.

Hello? They've got about nine years of regular shopping data on me. If they still make multi-decade errors in identifying my age -- and can't get my gender right -- their data department hasn't even made it into the abacus era.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by keanebean86 on Friday May 17, 2019 @09:50PM (#19945103)
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by jacobmassey on Friday May 17, 2019 @09:52PM (#19945113)
..what data department?
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by chrischen on Friday May 17, 2019 @08:14PM (#19944765)
Well as for sanitary napkins they may have assumed that if you have kids, you have a wife.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thakoppno on Friday May 17, 2019 @09:50PM (#19945098)
Wrt to depends, maybe their algo gradient descends on natural language first? This guy doesn’t need kids diapers anymore, lets try something less specific.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by tylerhou on Friday May 17, 2019 @07:30PM (#19944556)
Why do you assume that retail companies are not looking at data already? Target was (in)famously able to predict that a teenager was pregnant before she herself knew based on her shopping habits. It's entirely possible that retail companies are already following a close to optimal strategy (don't sell too many items at such a low price because they're a loss leader?).
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by fjsolwmv on Friday May 17, 2019 @07:46PM (#19944643)
That's not what happened, and you should reflect on what made you think such an absurd claim is true.

Target noticed she was pregnant before her father noticed.

https://www.forbes.com/sites/kashmirhill/2012/02/16/how-targ...

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Friday May 17, 2019 @08:37PM (#19944864)
> That's not what happened, and you should reflect on what made you think such an absurd claim is true.

OK, that's not what happened, but I don't see why you're calling the claim absurd. It is unusual-but-routine for women to present with health complaints that are caused by their own pregnancy, without necessarily having realized they were pregnant. Sometimes that health complaint is "I'm in labor". (To get to that point, you have to be really fat, but it does happen.)

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by tylerhou on Friday May 17, 2019 @08:53PM (#19944921)
Sorry -- I misremembered the story. But as another commenter notes, it's routine for women to not know they are pregnant [0]. So my claim is not "absurd", and I don't feel any need to "reflect" on my actions. The patronization is not necessary.

The main intent of my anecdote is to show how retail companies are already analyzing data. And I think it's foolish to assume that we (i.e. people working directly in tech) know better than the people who are working in tech + retail. (Many retail stores are on the technical bleeding edge - Target spins up K8 clusters in each store [1]!)

[0] https://www.webmd.com/baby/features/can-you-be-pregnant-not-... [1] https://tech.target.com/infrastructure/2018/06/20/enter-unim...

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by CamperBob2 on Friday May 17, 2019 @05:48PM (#19943885)
Same thing happens here, except there is always a loyalty card special on some items. If you want, say, a 12-pack of Vanilla Coke Zero, well, you have to buy three of them at once to avoid being reamed at the register. But you had better get there right after it's restocked, because it's always "Buy 2, get 1 free" or worse, "Buy 2, get 2 free," and they never stock more than three or four cartons at a time.

Every time someone talks about how grocery stores are these highly-optimized retail juggernauts that know everything about what they're selling, how much to order, where to place it on the shelf, and so on, I just wish I could take them on a tour of my local stores and ask them to explain various seemingly-nonsensical practices. IMHO, there is a lot of room for efficiency improvements in the retail grocery business.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by jonas21 on Friday May 17, 2019 @07:39PM (#19944603)
I think they know exactly what they're doing. Those soda deals are usually loss leaders, i.e. the store takes a loss on every 12-pack they sell, but make it up in all of the other stuff you buy now that you're in the store.

If they can get you to come into the store and not buy the soda, that's a great outcome. Of course, if that happens too often, you'll stop going, so it's a balance. They've probably figured out how much to stock to maximize profits -- which might seem nonsensical if you were thinking they were trying to maximize soda sales.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by eunoia on Friday May 17, 2019 @07:55PM (#19944687)
I don’t understand how the soda display is supposed to pull in new shoppers.

Americans tend to drive to the grocery store in my experience. To me, this means most people committed to shopping at the store long before they got there and saw the soda display.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by callalex on Friday May 17, 2019 @08:31PM (#19944834)
It’s the driving aspect that adds the competitiveness. If you’re driving, a 15 minute drive can get you to a lot of different stores with the same amount of effort.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by CamperBob2 on Friday May 17, 2019 @09:10PM (#19944978)
If they can get you to come into the store and not buy the soda, that's a great outcome.

No, that's a terrible outcome, because they have taught me to check the soda aisle first (and they have kindly put it near the front of the store where it's convenient to do so). If the shelf is empty, I just turn around and head for the competing grocery store down the street....

... which, of course, is owned by the same conglomerate. Grrr.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by cameronbrown on Friday May 17, 2019 @06:44PM (#19944331)
This is something I've been thinking about a lot recently. It seems to be an impossible task to build a startup in this area as most supermarkets are far too large and have their own (seemingly sloppy) teams to do this stuff. Experience has taught me that there's probably a reason for things being the way they are.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by fjsolwmv on Friday May 17, 2019 @07:49PM (#19944659)
Buy 2 get 3 free, must get all 5, is the best I've seen. And it's so stupid cheap you can't decline.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by CamperBob2 on Friday May 17, 2019 @09:17PM (#19945000)
Exactly, and no one does. So the typical outcome is a shelf that sits empty for days at a time, annoying customers and earning $0 for either the store or the soft-drink distributor.

It's not just junk food, either -- they will cheerfully leave half their organic cereal aisle empty, waiting for restocked product that either never arrives or sells out instantly. This phenomenon is observable on timescales measured in weeks or even months.

It's possible that the cereal distributor is actually leasing that shelf space, of course... in which case the annoying situation is still caused by morons with money who aren't taking care of business.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by tzs on Saturday May 18, 2019 @12:24AM (#19945596)
It's not just Safeway. I see the same thing at Walmart with 2 liter bottles of Dr. Pepper and Diet Dr. Pepper. I've never seen them run out of Dr. Pepper, and frequently see them out of Diet Dr. Pepper. This has been going on for years, but I've never seen them change the relative amount of Dr. Pepper and Diet Dr. Pepper they stock.

Same story at the vending machines at the office building that my company used to have an office in. The vending company stocked the drink machine with 2 rows of Pepsi and something like 8 rows of Coke. The Pepsi was consistently sold out by the middle of the week after the machine was filled. The Coke? Maybe 10% of it was sold by the time they came around to restock. But they never figured out that they should add more rows of Pepsi and reduce the number of Coke rows.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by function_seven on Saturday May 18, 2019 @02:05AM (#19945942)
I thought my store was the only one. At Stater Bros. the Coke product 12-packs will almost always be “on sale” at either 3/10.99, 4/12.99, or sometimes even 5/14.99. (And you must buy the multiple listed to get the deal)

Every time, without fail, the Diet Coke column is nearly empty while the Coke, Sprite, and Coke Zero ones are full. Not only that, but Diet Coke gets the smallest portion of the endcap.

My only rationale for this is that these are loss leaders, and the Diet Coke is too popular to allow too much room? I don’t know.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by wcunning on Saturday May 18, 2019 @08:13AM (#19946976)
Reasons that I can think of:

1) they don't want to take more of a loss than they have to go get you in the door, 2) the people who buy diet coke or diet Dr pepper are statistically more likely to shop sales than the people who buy non-diet, 3) the relative allotted shelf space and display area aren't just a store manager decision, but actually a product the grocery store sells to the manufacturers, 4) (2) & (3) imply that stores in different class areas of town might have very different which product sells quickly and utterly fail to optimize stocking of the thing you noticed when it literally never sells out at the Kroger a mile away, for example.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by function_seven on Saturday May 18, 2019 @02:55PM (#19949077)
I think your #3 makes a lot of sense. I always forget how much the manufacturer can often dictate shelf placement and layout.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by y4mi on Saturday May 18, 2019 @02:34AM (#19946051)
As if. All coke products are way over priced.

Just look at the pricing between different serving sizes. Their price differs often less than 30%, even if you compare 0.5l to 2l.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by function_seven on Saturday May 18, 2019 @04:26AM (#19946343)
Given their sales numbers, I’m sure the prices are spot on. The people buying a 500ml bottle of Coke aren’t looking to lug around a 2L bottle, and the people buying a 2L bottle are focused on saving money.

Me, I like cans. They’re about 35¢ apiece. That’s cheap enough to not worry about, and way better than getting a fountain soda at a fast food restaurant.

Market segmentation at its finest!

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by CydeWeys on Saturday May 18, 2019 @06:58AM (#19946754)
2L bottles are just way too big unless you have multiple people drinking or a serious habit (in which case you really should just cut back). The problem is the soda goes stale so quickly once opened.

My ideal is soda fountain machines, but of course I'm not gonna have one of those in my apartment, so the next best is cans.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by cameronbrown on Saturday May 18, 2019 @06:58AM (#19946752)
Here in the UK I've seen cans priced at 2/3 a regular bottle - far worse value.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by y4mi on Sunday May 19, 2019 @01:34AM (#19951627)
i meant overpriced in the context of the parent comment calling them loss leaders.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by stjohnswarts on Sunday May 19, 2019 @03:08AM (#19951894)
and the aluminum gets recycled!
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by task_queue on Friday May 17, 2019 @06:18PM (#19944132)
Companies will often sign shelf-space and display agreements with supermarkets when it comes to displaying their brands' products in-store. There very well might be an agreement between Safeway and Nabisco when it comes to their inventory display.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Friday May 17, 2019 @06:23PM (#19944170)
I don't see how this could lead to the observed results. Nabisco shouldn't be any less interested in selling more Parmesan Garlic triscuits while selling the same quantity of other triscuits than Safeway should be. There is no party who gets a win out of just not ordering/selling the triscuits; this is a pure loss for everyone involved.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by greeneggs on Friday May 17, 2019 @07:02PM (#19944426)
Safeway might be required to devote equal shelf space to each of the 24 varieties of Triscuit [1], or perhaps at least the same minimum amount of shelf space to each variety. Nabisco doesn't want some competitor to grab that shelf space. And maybe Safeway doesn't find it worthwhile to train its stockers to restock one variety more frequently than the others.

[1] https://www.thedailymeal.com/eat/triscuit-flavors-how-many-a...

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by task_queue on Friday May 17, 2019 @07:13PM (#19944473)
Brands went on a diversification kick less than a decade ago. If a customer prefers Triscuits Flavor #5, but stores only stock popular Flavor #3, that person might not choose to buy the brand at all when they go shopping. They could reach for, and learn to prefer, a competitor's brand.

If a potential new customer doesn't like popular Triscuits flavors, but sees a newer but a less popular flavor, the availability and visibility of the less popular but still desirable flavors might convert them into a customer.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Friday May 17, 2019 @08:29PM (#19944824)
> If a customer prefers Triscuits Flavor #5, but stores only stock popular Flavor #3, that person might not choose to buy the brand at all when they go shopping. They could reach for, and learn to prefer, a competitor's brand.

...this is exactly the situation I'm complaining about, except that the customer prefers Popular Flavor #3, which the store doesn't stock, to Unpopular Flavor #5, which it does.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by linuxftw on Friday May 17, 2019 @07:18PM (#19944495)
Most likely, the sale is to move the products that don't otherwise move (eg, everything but the parmesan garlic). Clearly you're willing to spend full price on those, so there's no incentive to sell more of them at a lower margin.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by skwog on Friday May 17, 2019 @10:53PM (#19945301)
Assumes grocer’s primary customer is consumers. What does the product manufacturer or the distributor want? Not the same as what the consumer wants. Who pays what to the grocer? Ever seen 3-5 people staring at shelf space and taking notes? Guess what they are buying.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by freeflight on Friday May 17, 2019 @08:18PM (#19944777)
> All flavors get the same shelf space, Parmesan Garlic always sells out quickly, and Safeway appears to be happy to forgo the lost sales of Parmesan Garlic triscuits that they could have made if they'd just had them in stock.

Imho this is probably due to the fact that they make more than enough money during the sales periods.

If somebody shows up during the sales period, with the intention of getting Parmesan Garlic, they very likely will still end up buying another flavor even if Parmesan Garlic ain't in stock anymore.

This is easily justified if somebody went to the store just for the Triscuit sale.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Friday May 17, 2019 @09:25PM (#19945025)
The sales aren't announced. They just happen. There have been many times when I specifically went to buy triscuits, and couldn't do it because they happened to be on sale.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by freeflight on Friday May 17, 2019 @11:10PM (#19945353)
Those are some really weird sales then, what use is the sale if nobody knows about it?

In Germany, most grocers have little leaflets where the majority of sales are announced a bit ahead of time.

Aldi makes a lot of consumer goods business with that, when they sold their first desktop in the mid-90s, all of them built by Medion in the UK, it was a huge deal with long waiting lines even before the stores opened and them running out of stock in a matter of hours.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Saturday May 18, 2019 @12:23AM (#19945588)
> Those are some really weird sales then, what use is the sale if nobody knows about it?

OK, it's possible that there's a low-profile outlet for releasing news of upcoming discount periods, and I just don't know about it. However, I can list several effects of the sale that occur whether or not shoppers know about it in advance of coming to the store:

- You might choose to buy more of something than otherwise, since it's cheaper right now.

- As a special case, you might have planned to buy zero of something, only to increase that amount when you notice it's on sale.

- You might choose to buy a discounted item in preference to the non-discounted item you were originally planning to buy.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by AnthonyMouse on Saturday May 18, 2019 @01:02AM (#19945765)
In addition to that, there are psychological effects. You go to the store and find things unexpectedly on sale, which makes you want to go back to the store. Then when you do something else is on sale, which pleases you again and reinforces you coming back to the store.

The fact that one $3 thing you bought was unexpectedly on sale but every time you go to the store you spend $200 on other stuff is a thing that the store is aware of.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by arcticbull on Saturday May 18, 2019 @03:56AM (#19946282)
Ah yeah I hadn't considered the random reinforcement effect. Devious, really.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by ulucs on Saturday May 18, 2019 @04:13AM (#19946318)
Maybe the causality works in reverse and Safeway discounts triscuits only when they run out of Parmesan Garlic. It would make sense if the supplier only provides equal amounts of each special flavor.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by UnFleshedOne on Friday May 17, 2019 @06:02PM (#19943997)
Maybe they are a loss leader and they don't want to sell too much of it at that price?
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by dragonwriter on Friday May 17, 2019 @11:47PM (#19945472)
> Parmesan Garlic is more popular than every other flavor, and Safeway should stock more of that flavor than they do of other flavors

Or they should increase the sale price relative to other flavors, so that it still sells out, but near the end of the sale period, maximizing profits.

Or, they are doing the right thing, and you aren't the only person who has noticed it, and the sales drive people to the store at the early part of the sale, which is why the Garlic Parmesan sells out, and Safeway has other means of taking advantage of that, like merchandising high margin complementary products in conjunction with it.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by kkarakk on Saturday May 18, 2019 @02:25AM (#19946010)
or people just goto amazon/online retailer that does stock it and order the product there. although infuriatingly companies seem to have caught onto this and don't sell some products online, in which case my contrarian brain just rejects the product entirely instead of accepting the artificial scarcity
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by grawprog on Friday May 17, 2019 @09:47PM (#19945091)
I don't know how it works at other stores, but at the grocery store I worked at Christie handled all their own products. One of their reps came in to stock the shelves, do orders and take away expired products. Their products came in a special order and sat in the warehouse until the Christie Rep came. It was like that for all their products, triscuits included.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by wccrawford on Saturday May 18, 2019 @07:14AM (#19946798)
Our local Publix does this for a few items we buy. The one that's currently biting us is Coke w/ Splenda. Every single sale the shelf is empty, and even sometimes when it's not on sale. And yet they never order additional amounts of it. Most other varieties are full on the shelf at all times.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by joncrane on Friday May 17, 2019 @11:35PM (#19945439)
Well, think about it. Safeway makes less money when the product is on sale. And people are used to the popular flavors selling out when the product goes on sale. (The exact same thing happens with ice cream, especially Ben and Jerrys).

Safeway's job is to maximize profit, not maximize number of units sold at sale price.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by atr_gz on Saturday May 18, 2019 @03:03AM (#19946134)
Not true - when products go on sale the brand is giving the store a kickback per unit sold or a discount on the cost of goods. The store often makes more on sale items.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by mruts on Friday May 17, 2019 @08:10PM (#19944748)
Reminds me of how I got to Panera Bread to get blueberry bagels, but they are always sold out..
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by barbecue_sauce on Friday May 17, 2019 @09:11PM (#19944980)
Nabisco is a DSD vendor. It's own sales associates and merchandisers are responsible for ordering and stocking the shelves. These people are on site (in-store) at most once per day (depending on the unit volume of the store and delivery schedules). Data gets funneled to the sales associate to make their own judgement calls about ordering (though they may be on auto-ordering depending on how close of a relationship the store/chain's snack category management has with Nabisco). High volume stores get 2-3 Nabisco orders in a week.

Sometimes there isn't great communication between sales reps and grocery/store management because of how little involvement is necessary on the store's end. As a manager at a full assortment grocer, unless you have a very specific interest in Nabisco, you may not even notice a SKU is out of stock. Reps will hide shelf tags, and increase other product facings to make it seem like they're fully stocked. Unless a customer brings it up to you, you may have no idea. From a data perspective, an out of stock issue is virtually indistinguishable from a slow-moving SKU as the granularity of sales data is usually only at the "day" level (and due to shrinkage, generated inventory counts are unreliable). So a large demand for parmesan garlic triscuits may not be evident for whoever is reviewing the data.

Also, your reasoning is a little flawed. Parmesan Garlic being out of stock does not necessarily indicate it is more popular than other flavors. It indicates simply that they ran out of their allotment, which (for big sales) is usually centrally planned according to production and previous sales figures. Your store could be in the midst of a negative feedback loop, where previous out-of-stock situations deflate sales figures and affect future allotments, which simply makes the parmesan garlic SKU go out of stock before other "more popular on-paper" flavors.

Another way to look at it is that the margin on triscuits is so low (and even lower when on sale), that caring too much about the extension SKUs is not worth the time/effort. As a rep, you'd mostly be worried about keeping the primary SKU in stock, occasionally juggling other stock from store to store when management gives you a hard time (if they even notice). As a grocery manager, you're probably oblivious if the vendor is actively trying to hide the problem.

Some brands that have an owner-operator type DSD model (where the reps actually work for themselves and own their own routes) are usually more conscientious and concerned with maintaining a full assortment. Ironically, they tend to not have as much frontline support as the corporate DSD behemoths (like Nabisco) so they have to work much harder to cover more stores (but at least they reap more of the benefits of their hard work, potentially). These are usually more regional or local products.

TL;DR Safeway probably doesn't care or doesn't know, Nabisco also probably doesn't care. Best way to deal with something like this is to submit something to Safeway corporate that a specific SKU (include the UPC) is always out during a sales period at a specific store (if you can find out the store number, even better). The most direct approach would be to find the Safeway snack category manager on LinkedIn and shoot him a message.

Source: Was a Grocery Manager for Wegmans for several years

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by thaumasiotes on Friday May 17, 2019 @09:51PM (#19945106)
This is a great comment, thanks very much.

I have almost nothing more to add, but I'll mention that I recall reading about Wal-mart's practice of making shelf stockers responsible for deciding which products get how much shelf space, and even for ordering the appropriate products -- the theory being that the shelf stocker is the guy in the best position to notice which products are or aren't flying off the shelves. (Whereas, according to what I read, at a standard grocery store, the shelf space itself is sold to a supplier, and they get to dictate what goes on it.) And when I read that, it made me think of the triscuits issue, and imagine that what was happening was that triscuit varieties were being stocked without bothering to look into whether they were popular.

If you have further things to say in this area, I will certainly read them with interest.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by barbecue_sauce on Saturday May 18, 2019 @01:44AM (#19945877)
In my experience, it's only really the end cap displays that are bought and sold, rather than the inner aisle space. For instance, Nabisco or Keebler/Kellog's (though they have recently moved out of DSD) might pay to get a permanent end cap space contract across a chain with certain stipulations (must be facing the cash registers, in the front of a high traffic aisle, etc.) and then they'll merchandise that space with whatever their sales items are. To compete with Walmart, many retailers eschew selling this end cap space anymore, instead electing to have vendors/suppliers put that budgeted money towards decreasing the overall cost of goods sold. Instead, retailers plan the endcaps themselves based on seasonal focuses and promotional pricing.

The inner aisles are usually planogrammed (the retail nomenclature for the diagram of where stuff should be, height of the shelves, how many facings, etc.) according to the priorities of the category manager i.e. the person in store corporate offices responsible for that particular product group. You'll notice that categories and subcategories inside of a grocery store are organized into shelfing sections of multiples of 4 feet (most commonly). Each of these sections is assigned to a category manager, and managers usually have multiple categories. So Category Manager A might be responsible for 16' of soup in one aisle and 20' of canned vegetables in another aisle. (The layout of the aisles and which categories go where is a separate discipline referred to as "Space Planning").

So this space isn't necessarily "sold" per se, but the category managers usually work with what's called a "category captain", an individual or team that represents a dominant brand in the category, and they influence the planogramming process. They are supposedly unbiased and are merely providing expertise and insight on their respective industries, but that's a pretty naive view as they clearly get to advocate for their products directly. However, the strategy of the grocer will determine how much influence they actually have. Wegmans, for instance, has a strong focus on private label so Wegmans brand products tend to get the most shelf space no matter what.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by sailfast on Friday May 17, 2019 @10:30PM (#19945230)
Comments like this are the reason I am on this website. Thank you for taking the time to lay this out and sharing your experience with us.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by barbecue_sauce on Saturday May 18, 2019 @02:06AM (#19945949)
I should add that after looking into the current situation of Nabisco, it looks like Mondelez (the current corporate owner of the Nabisco brand) is actually considering ending DSD in favor of warehousing i.e. distributing through a grocer's own supply chain.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by burger_moon on Friday May 17, 2019 @11:45PM (#19945464)
I know only knew a little about this industry from dating someone who was a merchandiser, this filled in so many gaps in what I knew about those jobs! What a great comment
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by mortenjorck on Friday May 17, 2019 @11:36PM (#19945441)
Knowledgable, in-the-weeds, yet accessible discussion of a domain I have no connection to might be my favorite thing about HN comments.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by PascLeRasc on Saturday May 18, 2019 @12:08AM (#19945533)
Aldi's where I get 90-100% of my groceries most months and I've had this experience with stuff like the teriyaki sauce and some of their granola bars, but I've learned to live with it. It's still so much a better experience and cheaper than any other grocery store in Pittsburgh. Aldi "gets" how I want to shop for groceries so much - no bullshit with multiple brands, membership cards, self-checkouts, having to buy in bulk to get a discount, etc.

There are a lot of local businesses that I love but have one gripe with, like a great restaurant with an awkward wait procedure (Gaucho if anyone's familiar), or my favorite barbershop that's only open late one night a week, but I've accepted that they know more than me about how to run, and maybe it just has to be like this to be great overall.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by seanmcdirmid on Saturday May 18, 2019 @01:38AM (#19945860)
No self checkout would be a show stopper for me, some of us actually prefer it to going to a manned register.

Not that we have Aldi where I live, but we do have Trader Joe’s, and I simply choose Safeway or QFC because I really really like self checkout.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by eredengrin on Saturday May 18, 2019 @02:06AM (#19945952)
Maybe if you went to an Aldi you would change your mind. I generally prefer self checkout as well for a few reasons, all of which are not relevant for Aldi:

1) It's faster for self checkout because the line moves faster (one line for multiple checkout stations) and because I can scan my items faster than they can. However, Aldi checkout lines move ridiculously fast, so this ends up not mattering much.

2) I get to pack my own stuff, most cashier employees don't pack things to my liking (eg cold items should all go in the same bag so they help keep each other cold, but they don't always do this). At Aldi, you pack your own bags anyway, so this is not an issue.

3) Talkative cashiers. I don't care to talk to a random person I'm never going to see again, but at Aldi you don't have to because you'll be so busy trying to load your items on the conveyor belt trying to keep up with the cashier that they won't have time to talk to you (see #1, and no I'm not joking, it can be hard to load up the belt fast enough to keep up with them if you don't have a significant head start).

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by seanmcdirmid on Saturday May 18, 2019 @11:09AM (#19947805)
I actually just like scanning my own stuff. Ya, and avoiding cashiers, eye contact, everything else. Also, I’m urban, so wind up buying just a basket full every one or two days.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by pbhjpbhj on Friday May 17, 2019 @08:52PM (#19944916)
Surely that sort of thing is relatively easy to identify and use the data to adjust the relative quantities per pack?? All this flavour sells first, lets put more of that flavour in each box for people to select their purchase from?

Maybe, people return to get the Tikka, resulting in more sales??

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by everyone on Friday May 17, 2019 @05:28PM (#19943734)
I wonder does that lead to a lot of waste?

Eg. the 30% of the box thats the flavour that no-one (at this shop) buys, goes off and is dumped, for every box.

Maybe the ratios are determined by their global sales, who knows. You would think that it would be advantageous for each shop to tweak its own ratios.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by NeedMoreTea on Friday May 17, 2019 @06:28PM (#19944199)
Good question - mostly I guess no as they sometimes seem intent not to refill until other levels drop too.

Mostly this averages well enough. Yet for a few things - like tikka where ratios seem consistently wrong. As Britain's favourite curry, you'd expect a few extra jars of that in every box. Or Cumberland sausages up here in former Cumberland - just forget about whatever the other things in the box are. :)

Probably means going the other way that when they drop something there's a chance 1 of the 2 or 3 actually sold well.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by Symbiote on Friday May 17, 2019 @05:35PM (#19943795)
They would just reduce the price until it does sell.

Also, packaged food like this typically last at least several months, if not a year or two.

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by coldtea on Friday May 17, 2019 @06:17PM (#19944126)
>Eg. the 30% of the box thats the flavour that no-one (at this shop) buys, goes off and is dumped, for every box.

They aren't stupid, if a product flavor regularly doesn't sell 30% of its inventory, they drop it and add more packets with the other flavors...

Re:Aldi, a brutally efficient grocery chain, is upending Ame... by pjc50 on Saturday May 18, 2019 @06:26AM (#19946670)
They basically don't do this for perishables. And they don't seem to restock if there's still some on the shelf. I'm pretty sure they can't afford to waste 30% of a product!
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by FabHK on Friday May 17, 2019 @06:13PM (#19944087)
It doesn't get dumped, some customers just buy their second preference.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by HeWhoLurksLate on Friday May 17, 2019 @06:07PM (#19944040)
On that note, they finally moved their cheese away from that model- their new cheese packaging isn't as great for what we use it for, but it does make getting slices out easier, and it's almost always there, which I care about more.
Re:Aldi, a brutally efficient grocery chain, is upending Ame... by seanmcdirmid on Saturday May 18, 2019 @01:37AM (#19945856)
Just consolidate their boxes for them? Is it against the rules or just not practical?