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."
Discussion Questions: 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, as well?