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Aldi

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Aldi is a major brand name for two German multinational discount supermarket chains.

Aldi Logo on the outside of shops
Aldi Logo on the outside of shops

These companies operate more than 13,500 stores across 18 different countries. They are known as discount retailers because they focus on keeping prices low for customers. This is achieved by minimizing costs in many parts of their business operations. Today, the two chains are separate entities that compete in various global markets.

AldiNord-WorldwideLogo
AldiNord-WorldwideLogo

The business model relies on strict cost-cutting measures to maintain low prices. In the early days, the founders removed merchandise that did not sell quickly from their shelves. They also avoided spending money on large advertisements and kept their retail outlets small. Instead of using complex rebate stamp systems common at the time, they subtracted a 3% rebate directly before the sale. This streamlined approach allowed them to grow from a few shops to 300 stores in Germany by 1960.

Aldi-Kalchstraße
Aldi-Kalchstraße

The history of Aldi began with brothers Karl and Theo Albrecht. Their mother opened a small grocery store in Essen, Germany, in 1913. Karl and Theo were born in 1920 and 1922, respectively. After serving in the German Army during World War II, the brothers took over the family business in 1945. By 1950, they had expanded to 13 stores in the Ruhr Valley. In 1962, they introduced the name Aldi, which is a syllabic abbreviation for "Albrecht Diskont."

Albrecht Filiale 1958
Albrecht Filiale 1958

A significant split occurred in 1960 when the brothers divided their company. One report suggests they disagreed over whether to sell cigarettes in their stores. Karl believed cigarettes would attract shoplifters, while Theo did not. This disagreement resulted in the creation of two separate groups. Theo ran Aldi Nord, which was initially focused on Northern West Germany. Karl ran Aldi Süd, which focused on Southern West Germany.

Aldi equator
Aldi equator

Today, Aldi Nord and Aldi Süd are legally and financially separate organizations.

Aldi branches in Europe (Updated)
Aldi branches in Europe (Updated)

Aldi Nord is headquartered in Essen and is owned by three foundations: the Markus-Stiftung, the Jacobus-Stiftung, and the Lukas-Stiftung. These foundations use a "Doppelstiftungsmodell," or double foundation model. Aldi Nord owns 23 regional companies in Germany and seven foreign companies, including the Trader Joe's chain in the United States. They also own over 5,300 buildings, including warehouses and offices.

Aldi Süd is headquartered in Mülheim and is owned by the Siepmann-Stiftung, the Oertl-Stiftung, and the Elisen-Stiftung. This group also uses the double foundation model. Aldi Süd manages 24 regional companies in Germany and ten foreign companies. These include locations in Australia, China, the United Kingdom, and the United States. They own over 5,000 buildings and even own the Öschberghof golf hotel in Donaueschingen. Both companies are considered very stable, with the groups being nearly or entirely debt-free.

Both chains have expanded rapidly across the globe through various acquisitions. Aldi Süd began international growth in 1967 by acquiring the Hofer chain in Austria. In the United States, Aldi Süd has grown to include 2,428 stores across 39 states as of October 2024. They have also planned massive investments, including over $9 billion to open 800 new stores by 2028. In the United Kingdom, Aldi became the fourth largest supermarket by September 2022.

ALDI Süd in Macclesfield, UK
ALDI Süd in Macclesfield, UK

The company continues to grow by acquiring new supermarket chains and entering new markets worldwide.

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🖼️ Images & Media (12)
File:ALDI SUD.svg
ALDI SUD.svg
File:AldiNord-WorldwideLogo.svg
AldiNord-WorldwideLogo.svg
File:Albrecht Filiale 1958.png
Albrecht Filiale 1958.png
File:Aldi-Kalchstraße.JPG
Aldi-Kalchstraße.JPG
File:Aldi Essen-Schonnebeck.jpg
Aldi Essen-Schonnebeck.jpg
File:Aldi equator.svg
Aldi equator.svg
File:Aldi branches in Europe (Updated).png
Aldi branches in Europe (Updated).png
File:Aldi UK Market Share Kantar.svg
Aldi UK Market Share Kantar.svg
File:Aldi supermarket - geograph.org.uk - 7476183.jpg
Aldi supermarket - geograph.org.uk - 7476183.jpg
File:ALDI Süd in Macclesfield, UK.jpg
ALDI Süd in Macclesfield, UK.jpg
File:AldiWorldwideLogo.svg
AldiWorldwideLogo.svg
File:Aldi Logo on the outside of shops.svg
Aldi Logo on the outside of shops.svg
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