ALDI was founded in 1948 by the Albrecht brothers, Karl and Theo. The Aldi Group started a discount grocery chain, with over 8000 stores worldwide. The company has operations in Germany, Europe, America, and Australia. The headquarters are based in Essen, Germany.
With over 8,000 stores worldwide, the main backbone of the commercial operations of Aldi is Germany, where the company has a market share of 40%, which accounts for about two-thirds of its sales. The second largest market is the United States with 850 stores in over 27 states
The strategy of the company is to maintain prices at the lowest possible level by reducing the costs as much as possible: it locates and builds cheap warehouses, uses the minimum number of employees, its sales area offers the basic necessities (boxes cans, dairy, bakery, fresh produce ...) products are sold through distributors, and the stock is reduced to an absolute minimum and replaced by linear pallets.
80% of Aldi's products are food products. The remaining 20% includes the "non-food" products such as: household products, hardware, and special offers around a particular theme. Aldi also sells services. IT is now offering services such as prepaid mobile phones, travel, ordering flowers online etc. However, the extent of services is more or less, depending on the country where Aldi is operating. In France, the supply of services in Aldi will be very limited while in the United States and Germany is at its maximum.
Today, the two brothers together have the third largest fortune in the world but are virtually unknown to the general public, even in their country.
• One group, two brands
Aldi operates under two separate brands: ALDI Nord (North Germany, Benelux, France and Denmark) and ALDI Süd (South Germany, Austria, Ireland, United States, Australia and United Kingdom). On the map below, we can easily see that Aldi has chosen its strategy of internationalization carefully; that is to say that the group has decided to establish itself in Western countries, especially ones that have a cultural affinity to it. Therefore, Aldi is not present in countries such as Japan.
Finally, emerging countries such as BRIC (Brazil, Russia, India and China) are far from seeing a brand like this type open operations, because the reason for the survival of hard discounters is their ability to be cheaper than competitors. However, in the countries mentioned, consumers are still discovering hypermarkets and their many services. It is only when the super and hypermarkets have become the reference in these countries that the hard discounters will address such countries.
As a "Privately Held company" that is not a quotée Company, Aldi is not required to disclose its results. However, according to Kloeters, the estimated annual sales are between $ 2.1 billion and $ 3.3 billion.
• Background
1913: creation of a grocery store owned by the Albrecht brothers' mother.
1950: Development of 13 grocery stores.
1960: Strategic Separation of Aldi Süd and Aldi Nord stores with 300: CA € 4M
Tags: 'Aldi', 'Trader Joe', 'Hard Discount stores'
[...] The main reason lies in the fact that Swiss law does not allow ALDI to implement its prices on its main markets, so that ALDI must implement "Swiss prices," which do not meet the expectations of customers entering a supermarket discount. Thus, the comprehensive strategy of the company is called into play. If the logistics of supply and production do not match the strategy of the Albrecht brothers, the development and attendance at outlets will be greatly reduced. We must not overestimate the ability of ALDI to charge low prices. [...]
[...] Indeed, the big brands do not fit into the strategy of Aldi, unlike that of Lidl. • The development of certain services: digital photo, set for drinks, mobile phone packages, travel, online ordering of flowers etc. Once considered the poor man's supermarket, Aldi is attracting more and more customers, aided by the current sluggish economy. Across the Rhine, all occupational categories have been attracted, with 9 out of 10 households saying that they are customers at Aldi Thus Aldi reacts to the market, and changes its strategy. [...]
[...] The customer profile is slightly different from those generally found in Europe. Most often it includes retirees, families with small incomes, and all those who have decided to save. Aldi has an advantage over its main competitor, as it has the lowest prices. Moreover, at the time when Wal-Mart was trying to settle in Germany, it was forced to withdraw from the market because customers found the products too expensive compared to those of Aldi. Virtually unknown in the United States, Aldi is a dwarf next to Wal-Mart in that location. [...]
[...] 1970: Start of the phase of international expansion. • List of major global competitors Worldwide: In France. ASDA Group Limited Ed (Carrefour Group) Foodland Associated Limited Leader Price Lidl & Schwarz Stiftung & Co Metro AG Tesco PLC Wal-Mart Stores, Inc . Woolworths Limited II. Aldi or the concept of "hard discount" Albrecht Discount: The first two letters of these words efficiently summarize the concept of Aldi. Indeed, this family business owned by the Albrecht brothers is behind the concept of hard discount stores. [...]
[...] Today hard discount stores are the opposite of traditional supermarkets and hypermarkets. How can Aldi afford to offer food at a lower cost? Aldi depends on four elements to make this possible: • A limited range Only about 700 brands are found on the shelves, while in a hypermarket like Carrefour, there are almost 15,000 brands This is because Aldi limits the number of identical or similar products. In addition, fresh produce and the fruits and vegetables available, are few. [...]
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