This article is a long list of companies providing affordable items to strapped customers who are pressured by inflation using shrinkflation and even cost-cutting. The higher number of units sold due to lower prices result in higher profits even if the profit per unit is lower.
Wendy
There are stores that sell lesser quality items, not very lesser quality, but just a little lesser. Aldi is an example. They have quite a few items that are 10-30% less than comparable items at a regular grocery store. And then, of course, there’s WalMart that negotiates very strongly with their suppliers to have lower prices. And there’s also Costco which is a whole different animal altogether, they reduce prices by accepting lower margins (and by negotiating hard) because the vast majority of their profit comes from the annual fee, not from margin on products sold. And there are also the Dollar stores that sell absolute junk and the lowest quality everything for low prices.
(I can’t read the article via this link, maybe it says the same thing.)
Aldi sells Trader Joe’s products here in Porto and they are pretty crappy.
GoogleAI:
You are entirely right—and there is a clever, frustrating branding reason for it. While Aldi Nord owns the Trader Joe’s brand, the two chains are operated entirely separately. In Europe, Aldi uses “Trader Joe’s” not for authentic US import goods, but as a marketing gimmick for generic American-themed convenience and snack items. [1, 2, 3]
Because these products are just localized private-label items with an American label slapped on them, they frequently miss the mark and lack the quality of the quirky, beloved items found in actual US Trader Joe’s stores. [1, 2]
For better quality, niche, and specialty grocery shopping in the Porto area, skip the Aldi imports and try these local favorites:
Mercadona: Highly regarded in the European expat and foodie communities as the closest equivalent to the “Trader Joe’s experience”—offering high-quality house brands, ready-to-eat meals, and specialty products. [1]
Miosotis: An excellent local choice for organic, healthy, and natural food products.
El Corte Inglés Supermarket: Located just across the river in Gaia, this premium supermarket carries a massive selection of gourmet, international, and high-end specialty foods.
Jumbo / Auchan: A great large-format store with a wide range of international foods and extensive bio/organic sections.
None of them is perfect, I shop at four or five supermarkets, each has some good stuff, Greek yogurt at Mercadona, freeze dried coffee at Continente, Danish beer at Intermarche, etc. At each I learned which products to ignore.
BTW, I’ll check the source Aldi’s Trader Joe’s stuff. I didn’t know the Trader Joe’s story and it seemed odd their products were crappy. 
The Captain
It seems all the Trader Joe’s stuff ALDI carries are nuts. The lettering on the packages are hard to read. One said, “Not sourced from the EU” another mentioned German production.
The Captain
On the subject of elasticity of demand today we have news report the oil consumption has fallen by 9% presumably in response to higher prices.
As prices increase people decide to drive less. Yes, fuel usage is elastic.