Credit Cards Not in Aldi’s Future
As an article on the Digital Transactions website points
out, Aldi doesn’t do credit cards. Sure, the company is running a test in
49 stores in Oklahoma, but that has been going on for three years now with
the company maintaining it has no plans to expand it.
Mark Bersted, vice president for Aldi, told Digital Transactions that
the cost of accepting credit cards does not make sense from the chain’s perspective.
“People not using credit cards would be paying for people who
do want to use them,” he said. “Because of the very high fees with credit
cards, we would be unable to keep our prices as low as they are.”
Adil Moussa, an analyst
with Aite Group LLC, said of Aldi’s policies, “People will pay cash if they
know they’ll get a good deal.”
Is not accepting credit cards a competitive advantage for Aldi? Do you
think this approach only makes sense for retailers serving low income
consumers or does it have applications with other groups of consumers,