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Aldi is a chain of strictly no-frills grocery stores with over 8000 locations worldwide. While other grocery chains are floundering, Aldi's contrarian, Spartan philosophy has allowed it to grow while continuing to offer quality items. It's rapidly expanding in America, attracting a bit of a cult following.
Aldi stores are paragons of efficiency, with little decor, few employees, and almost no advertising. They're also small: most stores average around 10,000 square feet in size (compared with the common 80,000 square foot size of a typical supermarket). They can do this by limiting your selection to one brand of each grocery item (theirs) and by refusing to carry obscure, slow-moving merchandise.
Almost all Aldi products are store-branded but still win consumer awards; in fact, many of the items are manufactured by the same companies which make the similar name-brand goods.
Aldi's tremendous efficiencies are maintained by:
•not giving away bags. Customers are expected to bring their own market basket or bag, buy one, or scout for an unused box in the store
•making you "rent" a shopping cart for 25c. You'll get it back when you return it; this eliminates the need to pay cart collectors.
•multiple barcodes on their packages: some boxes have five barcodes on them to speed scanning at the till.
Unlike many hard discount stores, though, Aldis are clean and uncluttered, maybe even austere. In a day when the toothpaste aisle in the typical grocery store has around 140 brands, sizes, and varieties, that may just be its biggest selling point.
Aldi stores are paragons of efficiency, with little decor, few employees, and almost no advertising. They're also small: most stores average around 10,000 square feet in size (compared with the common 80,000 square foot size of a typical supermarket). They can do this by limiting your selection to one brand of each grocery item (theirs) and by refusing to carry obscure, slow-moving merchandise.
Almost all Aldi products are store-branded but still win consumer awards; in fact, many of the items are manufactured by the same companies which make the similar name-brand goods.
Aldi's tremendous efficiencies are maintained by:
•not giving away bags. Customers are expected to bring their own market basket or bag, buy one, or scout for an unused box in the store
•making you "rent" a shopping cart for 25c. You'll get it back when you return it; this eliminates the need to pay cart collectors.
•multiple barcodes on their packages: some boxes have five barcodes on them to speed scanning at the till.
Unlike many hard discount stores, though, Aldis are clean and uncluttered, maybe even austere. In a day when the toothpaste aisle in the typical grocery store has around 140 brands, sizes, and varieties, that may just be its biggest selling point.
History
1958: Essen, Germany
In 1946, brothers Karl and Theo Albrecht took over and expanded their mother's small corner store in Essen, Germany, and in a few years, expanded the business to 13 stores throughout the Ruhr Valley. While other shops grew into large supermarkets, the Albrecht shops continued to stock only the basics, regularly weeding out slow-moving merchandise and keeping their store sizes (and real estate costs) small.
By 1960, the brothers had a falling out. Theo wanted to sell cigarettes in their stores, while Karl wanted nothing to do with them, and the 300-strong chain Albrecht Discount broke into separate companies: Aldi North (run by Theo) and Aldi South (run by Karl).
Aldi North has 4200 stores in Northern and Eastern Germany as well as France, Spain, Holland, and Portugal. Aldi South operates 3900 stores in southern Germany, Switzerland, Austria, Australia, the United States, the UK, and Ireland.
The brothers retired in 1993 and gave most of their wealth away - although they are still Germany's richest men.
Theo also owns the Trader Joe's grocery store chain separately from his Aldi holdings. There are 339 Trader Joe's stores in nine American states.
The Albrecht brothers are notoriously publicity-shy (like, Howard Hughes-level shy) : since Theo was kidnapped in 1971 and released 17 days later, only two photographs of the brothers have ever been published. Their collective worth is estimated by Forbes to be around $39 billion.
By 1960, the brothers had a falling out. Theo wanted to sell cigarettes in their stores, while Karl wanted nothing to do with them, and the 300-strong chain Albrecht Discount broke into separate companies: Aldi North (run by Theo) and Aldi South (run by Karl).
Aldi North has 4200 stores in Northern and Eastern Germany as well as France, Spain, Holland, and Portugal. Aldi South operates 3900 stores in southern Germany, Switzerland, Austria, Australia, the United States, the UK, and Ireland.
The brothers retired in 1993 and gave most of their wealth away - although they are still Germany's richest men.
Theo also owns the Trader Joe's grocery store chain separately from his Aldi holdings. There are 339 Trader Joe's stores in nine American states.
The Albrecht brothers are notoriously publicity-shy (like, Howard Hughes-level shy) : since Theo was kidnapped in 1971 and released 17 days later, only two photographs of the brothers have ever been published. Their collective worth is estimated by Forbes to be around $39 billion.
For more information
Wikipedia has an excellent entry on Aldi, its history, and business practices
FundingUniverse has a good rundown of the company's expansion successes and difficulties.
To find your local Aldi, check out your national Aldi webpage:
AUSTRALIA
AUSTRIA
BELGIUM
DENMARK
FRANCE
GERMANY (NORTH) (SOUTH)
GREECE
HUNGARY
IRELAND
LUXEMBOURG
NETHERLANDS
POLAND
PORTUGAL
SLOVENIA
SPAIN
SWITZERLAND
UNITED KINGDOM
UNITED STATES
FundingUniverse has a good rundown of the company's expansion successes and difficulties.
To find your local Aldi, check out your national Aldi webpage:
AUSTRALIA
AUSTRIA
BELGIUM
DENMARK
FRANCE
GERMANY (NORTH) (SOUTH)
GREECE
HUNGARY
IRELAND
LUXEMBOURG
NETHERLANDS
POLAND
PORTUGAL
SLOVENIA
SPAIN
SWITZERLAND
UNITED KINGDOM
UNITED STATES
