Aldi Shop Description

Type Industry Founded

German multi-national Retail (grocery) 1961

Essen, Germany (Aldi Nord) Headquarters Mülheim an der Ruhr, Germany (Aldi Süd) Key people Products Revenue Website Theo Albrecht, Aldi Nord Karl Albrecht, Aldi Süd Mainly own branded, few larger brands US$ 58 billion (2008) according to Deloitte[1]

ALDI Einkauf GmbH & Co. oHG, doing business as ALDI (help·info), short for "Albrecht Discount", is a discount supermarket chain based in Germany. The chain is made up of two separate groups, ALDI Nord (North - operating as ALDI MARKT), headquartered in Essen, and ALDI Süd (South - operating as Aldi Süd), headquartered in Mülheim an der Ruhr, which operate independently from each other within specific market boundaries. The individual groups were originally owned and managed by brothers Karl Albrecht and Theo Albrecht; Karl has since retired and is Germany's richest man. Theo was Germany's second richest man until his death in July 2010. Aldi's German operations currently consist of Aldi Nord's 35 individual regional companies with about 2,500 stores in western, northern, and eastern Germany, and Aldi Süd's 31 regional companies with 1,600 stores in western and southern Germany. Internationally, Aldi Nord operates in Denmark, France, the Benelux countries, the Iberian peninsula and Poland, while Aldi Süd operates in countries including Ireland, the United Kingdom, Hungary, Greece, Switzerland, Austria, Slovenia (operating as Hofer in Austria and Slovenia) and Australia. In the United States, Aldi Nord is the parent company of the Trader Joe's niche food stores, while Aldi Süd operates the regular Aldi stores in the country. According to a survey conducted in 2002 by the German market research institute Forsa, 95% of blue-collar workers, 88% of white-collar workers, 84% of public servants


is Lidl. The market leaders at the time. required their customers to collect rebate stamps. Both groups are financially and legally separate since 1966. The regional branches are organised as limited partnerships with a regional manager for each branch who reports directly to the head office in Essen (Aldi Nord) or Mülheim an der Ruhr (Aldi Süd).and 80% of self-employed Germans shop at Aldi. The brothers retired as CEOs in 1993 and gave most of their wealth to foundations. both nationally and internationally. By 1950. Aldi Süd is made up of 31 companies with 1. but always near to an autobahn to facilitate transporting the merchandise 2 . W. they introduced the Aldi brand name. which often were co-operatives. Karl Albrecht took over a food shop formerly run by F. while Karl worked in a delicatessen. Karl Albrecht was born in 1920.600 stores. The Albrecht brothers also rigorously removed merchandise that did not sell from their shelves. or when negotiating with contractor companies. experiencing a rapid expansion in the number of outlets after German reunification and the fall of the Iron Curtain. and cut costs by not advertising. save for a single Aldi Süd store in Sonneberg. Wermelskirchen. they will also occasionally appear as if they were a single enterprise. The regional distribution centres are usually located away from urban areas. and keeping the size of their retail outlets as small as possible. which was new at the time. In 1946. Their father was employed as a miner and later as a baker¶s assistant.500 stores. One of Aldi's direct competitors. Former East Germany is completely served by Aldi Nord. When the two brothers split the company in 1960 over a dispute whether they should sell cigarettes at the till or not. was to subtract the legal maximum rebate of 3% before sale. Karl Albrecht also served in the German Army during World War II. Judt who already advertised to be the "cheapest food source". not selling fresh produce. though they describe their relationship as a "friendly relation". In 1962. Thuringia that is associated with a Bavarian regional office. the brothers took over their mother¶s business and soon opened another retail outlet nearby. History The earliest roots of the company trace back to 1913. they owned 300 shops with a cash flow of DM 90 million per year. for example with certain house brands. Marburg. The brothers' idea. and to send them at regular intervals to claim their money back. Aldi expanded internationally in the 1970s and 1980s. Siegen and Gießen eastwards up to slightly north of Fulda. when the mother of Karl Albrecht and Theo Albrecht opened a small store in a suburb of Essen. Theo completed an apprenticeship in his mother¶s store. National business organisation The Aldi Nord group currently consists of 35 independent regional branches with approximately 2. Theo in 1922. the Albrecht brothers owned 13 stores in the Ruhr Valley. The border between their territories runs from the Rhine via Mülheim an der Ruhr.

Australia. Austria. Radevormwald. all advertising isn't done inhouse. Aldi Suisse in Switzerland and Hofer in Austria and Slovenia. Essen. Switzerland and Slovenia. Whilst Aldi Nord has long renamed its Dutch and Belgian subsidiaries Combi and Lansa to the ALDI Markt/Aldi Marché brand. for example. Hann. Schloß Holte. Ireland. Aldi will exit Greece this 31. In the UK. Aldi Nord. Luxembourg. Horst. has distribution centres in Bargteheide. by direct mail. Lehrte. It claims this is a cost saving that can be passed on to consumers. Internationally The Aldi group operates about 8. being held in such low esteem by many did not seem to dent Aldi's profits. Hungary. print and television ads have appeared since mid-2005. Aldi Süd currently is expanding in Switzerland.133 individual stores worldwide. where the first stores opened in 2007. Aldi Nord is responsible for the markets in Belgium. in the United States. the United Kingdom.December 2010. Salzgitter. Aldi Süd tries to keep a regional appearance. Minden. Werl and Weyhe. Schwelm. but it is generally believed that Aldi has never spent any money for an external advertising agency at all. Greven. Hoyerswerda. Lingen. Aldi advertises regularly via weekly newspaper inserts and television commercials (in some areas). A new store opens every week in Britain alone. Barleben. and often printed in local newspapers. Hemmoor. Beucha. Aldi Süd explicitly brands its outlets as Aldi Süd in Germany. Scharbeutz. Hesel. the Netherlands. Jarmen. However. Portugal and Denmark. Nortorf. Rinteln. Reputation Originally Aldi stores were often ridiculed as being cheap shops selling low-quality goods. Herten. Gradually many German consumers discovered that the poor reputation of Aldi's products was either undeserved or economically justifiable. where the first stores opened in 2005. Spain. In Germany. Aldi Süd caters to the markets of the United States. Advertising policy Aldi has a policy in Germany of not advertising. This shift in public perception was boosted by actions like a series of cookbooks that used only Aldi the individual stores. However. Münden. which led to the emergence of a kind of Aldi fandom into parts of the 3 . Greece and Poland are on the short list of countries for further expansion. and that Aldi's customers were mostly poor people who could not afford to shop elsewhere. Therefore. The coffee roaster of Aldi Nord is also located in Weyhe. apart from a weekly newsletter of special prices called Aldi informiert ("Aldi informs") that is distributed in stores. Beverstedt. France. Datteln.

New South Wales. Aldi debuted new TV commercials and a new website called "Shop ALDI Smart". Shop ALDI Smart On March 26. 2008." One of the new TV ads includes Aldi shoppers singing a jingle in a broadway scene.German mainstream. It also talks about "The Double Back Guarantee.alt. In many areas of Australia. as well as the German language newsgroup de. Aldi stores in many American states accept public assistance debit-style cards as payment. its importance along with that of continental no frills competitor Lidl is growing. It even became a new corporate slogan replacing "Incredible Value Every Day!" However. 4 . except in New South Wales. like most US supermarkets. In the United States. On 17 December 2008. In the UK. This can be seen by books like Aldidente with recipes containing only ingredients found at Aldi (which was later sold as a special at Aldi). Also. the old slogan is still seen in most while it is still a small player with a grocery market share of less than 3%. Aldi is aggressively recruiting management staff at top UK universities. Aldi filled a void in the discount supermarket business that arose when the popular discount grocery chain Franklins ceased trading in 2002. Aldi opened its 200th Australian store. Australian Capital Territory and Queensland. with those 200 located in Victoria. in the US.