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Aldi

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Not to be confused withAudi.

Aldi
Company typePrivate
IndustryRetail
Founded10 July 1946;78 years ago(1946-07-10)
(split in two parts in 1960, renamed to Aldi Nord and Aldi Süd in 1962)[1]
FoundersKarlandTheo Albrecht
HeadquartersEssen,Germany(Aldi Nord)
Mülheim,Germany (Aldi Süd)
Number of locations
12,596 (2022)
Area served
United States
Australia
China
Products
RevenueAldi Nord:Increase€27 billion (2022)[2]
Aldi Süd:Increase€76 billion (2022)[3]
Number of employees
Aldi Nord: 72,811 (2022)[4]
Aldi Süd: 201,361 (2022)[5]
SubsidiariesTrader Joe's(Aldi Nord)
Hofer (Aldi Süd)
Winn-Dixie(Aldi Süd)
Harveys Supermarkets(Aldi Süd)
Websitealdi
aldi.us
aldi.de

Aldi(stylised asALDI[6]) is the common company brand name of two Germanmultinationalfamily-owneddiscount supermarketchainsoperating over 12,000 stores in 18 countries.[7][8]The chain was founded by brothersKarlandTheo Albrechtin 1946, when they took over their mother's store inEssen.The business was split into two separate groups in 1960, that later becameAldi Nord,headquartered inEssen,andAldi Süd,headquartered in neigbouringMülheim.[9][10]

In 1962, they introduced the nameAldi(asyllabic abbreviationforAlbrechtDiskont),[11]which is pronounced[ˈaldiː]ⓘ.In Germany, Aldi Nord and Aldi Süd have been financially and legally separate since 1966, although both divisions' names may appear as if they were a single enterprise with certainstore brandsor when negotiating withcontractorcompanies. The formal business name of Aldi Nord is Aldi Einkauf GmbH & Co., while the formal business name of Aldi Süd is ALDI SÜD Dienstleistungs-SE & Co. Each company is owned and operated independently, but they do have contractual business with one another.[12]

Aldi's German operations consist of Aldi Nord's 35 individual regional companies with about 2,200 stores in western, northern, and eastern Germany, and Aldi Süd's 32 regional companies with 2,000 stores in western and southern Germany.[13]Internationally, Aldi Nord operates inBelgium,Netherlands,France,Luxembourg,Poland,PortugalandSpain,while Aldi Süd operates inAustralia,Austria,China,Hungary,Ireland,Italy,Slovenia,Switzerland,United KingdomandUnited States.In Austria and Slovenia, Aldi operates stores under the Hofer brand. Aldi Nord also owns theTrader Joe'sgrocery chain in the United States which operates separately from the group.[14][15]Aldi Süd owns theWinn-DixieandHarveyssupermarket chains in the southern United States.

Aldi is the chief competitor of the similar German discount chainLidlin several markets.[16]

History[edit]

Albrecht grocery store in Essen-Schonnebeck (1958)
Aldi's original store in Essen

KarlandTheo Albrecht's mother opened a small store in a suburb ofEssen,Germany, in 1913.[15]Their father was employed as a miner and later as a baker's assistant. Karl and Theo were born in 1920 and 1922 respectively.[17]Theo Albrecht completed an apprenticeship in his mother's store, while Karl Albrecht worked in adelicatessen.

Karl Albrecht took over a food shop formerly run by F. W. Judt and later served in theGerman ArmyduringWorld War II.In 1945, the brothers took over their mother's business and soon opened another retail outlet nearby.[15]By 1950, the Albrecht brothers owned 13 stores in theRuhr Valley.[18]

The brothers' idea was to subtract the legal maximum rebate of 3% before sale. The market leaders at the time, which often wereco-operatives,required their customers to collect rebate stamps and to send them at regular intervals to reclaim their money. The Albrecht brothers also rigorously removed merchandise that did not sell from their shelves, cutting costs by neither advertising nor selling fresh produce and keeping the size of their retail outlets small.[15]By 1960, there were 300 stores in Germany.[17]

Split[edit]

The brothers split the company in 1960, over a dispute about whether they should sell cigarettes.[19]Karl believed they would attract shoplifters while his brother, Theo, did not. This led to Theo running Aldi Nord, and Karl running Aldi Süd. At the time, they jointly owned 300 shops.[20]In 1962, they introduced the nameAldi—short forAlbrecht-Diskont, which translates into English as "Albrecht Discount".[21]Aldi Nord and Aldi Süd have been financially and legally separate since 1966.[20]

The individual groups were originally owned and managed jointly by the brothers.[22]After the death of Theo's son Berthold, Aldi Nord continues to be controlled by the Albrecht family through its Markus, Lukas and Jakobus foundations, which hold a combined 80.5 per cent of the company's issued capital.[23]

International expansion[edit]

Aldi started to expand internationally in 1967, when Aldi Süd acquired the grocery chain Hofer inAustria;[24]Aldi Nord opened its first stores abroad in theNetherlandsin 1973,[25]and other countries followed. In 1976, Aldi Süd opened its first store in the United States inIowa,[a]and, in 1979, Aldi Nord acquiredTrader Joe's.[15]AfterGerman reunificationandthe fall of the Iron Curtain,Aldi experienced a rapid expansion. The brothers retired as CEOs in 1993; control of the companies was placed in the hands ofprivate family foundations,the Siepmann Foundation (Aldi Süd) and the Markus, Jakobus and Lukas Foundation (Aldi Nord, Trader Joe's).[8]

Acquisition of Winn-Dixie and Harveys[edit]

On August 16, 2023, ALDI Süd entered into a definitive agreement to acquireWinn-DixieandHarveys Supermarket,including approximately 400 stores across Alabama, Florida, Georgia, Louisiana, and Mississippi.[27]On March 7, 2024, Aldi Süd closed the Southeastern Grocers acquisition and announced it would open 800 new US stores by the end of 2028, with some being Winn-Dixie and Harveys stores converted to the Aldi format.[28]

Business organization[edit]

Germany[edit]

Aldi in Germany

The Aldi Nord group currently consists of 35 independent regional branches with approximately 2,500 stores. Aldi Süd is made up of 24 companies with 2,000 stores. The border between their territories is commonly known as ″Aldi-Äquator″ (literally: Aldi equator)[29][30]and runs from theRhineviaMülheim an der Ruhr,Wermelskirchen,Marburg,Siegen,andGießeneast to just north ofFulda.

The formerEast Germanyis served by Aldi Nord, except for one Aldi Süd inSonneberg,Thuringia,whose regional office is inBavaria.The regional branches are organised aslimited partnershipswith a regional manager for each branch who reports directly to the head office inEssen(Aldi Nord) orMülheim an der Ruhr(Aldi Süd).

Internationally[edit]

Distribution of Aldi in Europe as of June 2018:
Aldi Nord
Aldi Süd

The Aldi group operates over 12,000 stores worldwide. Aldi Nord is responsible for its stores in Northern Germany,Belgium,France,Luxembourg,the Netherlands, Poland, Portugal, and Spain. Aldi Nord also owns theTrader Joe'sgrocery chain in the United States which operates separately from the group.[14]Aldi Süd's responsibilities are for Southern Germany, Australia, China, Ireland, United Kingdom, United States and through Austrian subsidiary Hofer AG in Austria, Hungary, Italy,Sloveniaand Switzerland.[31]In Austria and Slovenia Aldi Süd operates their stores under the Hofer brand. Aldi Süd's first Switzerland store opened in 2005, and it has operated in Hungary since 2007. Aldi Süd had invested an estimated €800m ($1bn; £670m) in Greece from November 2008 until pulling out on 31 December 2010.[32]

While Aldi Nord has renamed its Dutch and Belgian subsidiariesCombiandLansato theAldi Markt/Aldi Marchébrand, Aldi Süd tries to maintain a regional appearance, branding its storesAldi Südin Germany,Aldi Suissein Switzerland, andHoferin Austria and Slovenia.[33]

Aldi UK market share from Kantar Worldpanel
Aldi Süd inWetherby,West Yorkshire,England

Aldi launched inGreat Britain,on 5 April 1990, when it opened its first store there inStechford,Birmingham,using the wholly owned English registered company of Aldi Stores Limited. In October 2013, Aldi opened the 300th store in Great Britain.[34]By 2017, Aldi had over 600 stores there and was opening them at a rate of more than one a week.[35]In January 2022, Aldi launched its Shop&Go concept in Greenwich, London.[36]In September 2022 it was confirmed that Aldi had overtaken Morrisons to become Britain's 4th largest supermarket with a 9.3% market share.[37]In September 2023, Aldi opened its 1000th location in the UK and shared its plan to open another 500 as a long-term goal.[38]

Aldi entered the Irish market in 1999. In March 2022, its 150th store inIrelandopened inCahersiveen(County Kerry).[39]

ALDI Süd store inMacclesfield,UK

Aldi opened its first Australian store in Sydney in 2001, and has grown rapidly since, maintaining a 12.6% market share as of early 2016.[40][41]It has still yet to open any stores in the state ofTasmaniaor inNorthern Australiain major cities such asHobartorDarwin.[42]Financial website Canstar rated Australia's supermarkets based on the feedback of 2,897 consumers who had visited one in the past month with Aldi coming out on top.[43]By August 2019, there were 540 Aldi stores in Australia; Aldi had approximately 11 percent share of the Australian grocery market in the previous year.[44][45]

Aldi Süd expanded to the United States under the Aldi banner, having expanded throughout theEasternandMidwesternUS[46]Aldi Süd revealed expansion plans in 2015, and expanded into theSouthern Californiamarket, where Aldi Nord'sTrader Joe'sis based.[47]Reports in August 2019, stated that the company was in the process of using a $3.4 billion investment in order to expand to 2,500 stores in the country by year end 2022; it was also investing an extra $1.6 billion to renovate 1,300 of its US stores.[48]By February 2020, there were over 1,900 Aldi stores in 36 states. Groceries ordered on-line could be delivered to homes in the areas covered by 95 percent of stores in the US; this service was provided in conjunction withInstacart.[49]In February 2021, Aldi said that it is planning to open 100 new stores in 2021, in the United States (Arizona, California, Florida and the Northeast region).[50]

Aldi Süd opened its first 10 stores inItalyon 1 March 2018.[51]In the first year of operation, 51 outlets were opened. By October 2019, there were 66 stores in northern Italy.[52]At that time, the company was planning to open 80 new stores in the country as well as a distribution centre in Landriano.[53]

In mid-2019, Aldi Süd opened two small, upscale, stores inShanghai.Two more were opened in late-2019.[54][55]This is the first of a planned one hundred such locations in the city.[56]

In December 2020, Aldi bought 545 supermarkets and three warehouses ofLeader Priceand another 2 Casino supermarkets in France for €717 million fromCasino Group.[57]The transaction is part of Aldi's plan to catch up with Lidl in France.[58]

On 9 December 2022, Aldi Nord issued a press release stating that Aldi is withdrawing from Denmark[59]after 45 years of operations there. 114 of the chain's total of 188 stores will be taken over by Norwegian competitorRema 1000.[60][61]In August 2023, it was announced the Danish Competition and Consumer Authority had approved the Rema 1000 acquisition.[62]

New style of Aldi Süd inSimi Valley,CA, US
Old style of Aldi Süd inBethlehem, PA,US
Aldi Nord inRuda Śląska,southernPoland
Aldi Nord inTomaszów Mazowiecki,central Poland
Aldi Nord store inAmadora,Portugal
An ALDI Süd store inConder,ACT,Australia

Geographic distribution[edit]

Country Name Aldi group Since Outlets
Germany Aldi Nord Nord 1961[11] 2,201[63]
Aldi Süd Süd 1984[64] 2,011[64]
Australia Aldi Süd 2001 590[64]
Austria Hofer Hofer (Süd) 1968 541[64]
Belgium Aldi Nord 1973 453[63]
China ALDI áo nhạc tề Süd 2019 53[64]
France Aldi Nord 1988 1,321[63]
Hungary Aldi Hofer (Süd) 2008 172[64]
Ireland Aldi Süd 1999 161[64]
Italy Aldi Hofer (Süd) 2018 177[64]
Luxembourg Aldi Nord 1990 17
Netherlands Aldi Nord 1975 488[63]
Poland Aldi Nord 2008 251[63]
Portugal Aldi Nord 2006 122[63]
Slovenia Hofer Hofer (Süd) 2005 92[64]
Spain Aldi Nord 2002 394[63]
Switzerland Aldi Suisse Hofer (Süd) 2005 241[64]
United Kingdom Aldi Süd 1990 1,021[64]
United States Aldi Süd 1976 2,338[64]
Winn-Dixie Süd 2024 546
Harvey’s Süd 2024 71
Trader Joe's Nord 1979 587[65]
Total number of Aldi Nord stores 5,435[63]
Total number of Aldi Süd stores 7,397[64]
Combined total of Aldi stores 12,832
Combined total of Aldi + Trader Joe's stores 13,419

Business practices[edit]

On 9 August 2018, Aldi Nord announced plans to expand its product selection by offering more organic, fresh and easy-to-prepare meals. Aldi also aims to expand to about 2,500 stores in the United States by 2022.[66][67]On 18 September 2018, Aldi announced its intent to offer grocery delivery in the United States. Aldi began testing grocery delivery in 2017 in select cities such asAtlanta, Georgia,andChicago, Illinois.[68]

In-store layout[edit]

Aldi Nord interior
The inside of an Aldi Süd store in Hungary

Aldi stores are noted as examples of so-calledno-frillsstores that often display a variety of items at discount prices, specializing in staple items, such as food,beverages,toilet paper, sanitary articles, and other inexpensive household items. Many of its products areown brands,with the number of other brands usually limited to a maximum of two for a given item.

Aldi mainly sellsexclusively produced, custom-brandedproducts (often very similar to and produced by major brands[69]) with brand names includingGrandessa, Happy Farms, Millville, Simply Nature,andFit & Active.

Branded products carried includeHariboin Germany,Knoppersin Belgium, France, and the United States,MarmiteandBranston Picklein Great Britain; andVegemiteandMiloin Australia. Unlike most shops, Aldi does not accept manufacturers'coupons,although some US stores successfully experimented with store coupons.

In addition to its standard assortment, Aldi has weekly special offers,[70]some of them on more expensive products such as electronics, tools, appliances, or computers. Discount items can include clothing, toys, flowers and gifts. Special offers have limits on quantities, and are for one week. Aldi's early computer offers in Germany, such as aCommodore 64in 1987, resulted in those products selling out in a few hours.[71]

Aldi is the largestwineretailer in Germany.[72]Many Australian stores now sell alcoholic beverages. Some US stores also sell alcoholic beverages, mainly beer and wine, where permitted by local and state laws.

The outside of an Aldi Local, inBalham,London

In March 2019, Aldi Süd launched smaller-format stores in the UK calledAldi Local,with the first store inBalham,south London. The store has slightly fewer products than a regular Aldi, a preference for fresh products, two sizes of baskets rather than trolleys, and lacks the notable "middle aisle" of weekly offers.[73]

Aldi stores generally do not play music, though some stores in Scotland play Christmas music during December. Some have a PA system for announcements (not commercials), but most lack any audio system. In The Netherlands and Belgium, Aldi also sells A-brands.

In 2021, Aldi UK opened its firstcashierless storeinGreenwich.[74]

Advertising policy[edit]

In the United States, it advertises in newspapers and on television, as well as print ads distributed in stores, and via the Internet.

In the United Kingdom and in Ireland, print and television ads have appeared since May 2005. And since 2016, Aldi began producing a series of Christmas adverts to rivalJohn Lewis'featuring a carrot named Kevin. In 2024, Aldi partnered with British television channelChannel 4to sponsor its food programming strands.[75]

In Australia, television advertising is common and the current ads are listed on the Australian website.[76]

In Belgium, print, radio and television ads started appearing in late 2017. These ads were based on the positive results of taste-tests where the chain pitted its own products against common name-brand products.

In 2024, Aldi UK also partnered with Channel 4 to sponsor its food programming.[77]

Logos and branding[edit]

Variant of Aldi Süd Logo used internationally from 2006 until March 2017

The two stores Nord and Süd have distinct logos with Nord displaying the entire 'A' for Aldi while Süd unveiled a logo in 1982 which displays only half. In 2006, Aldi Süd modified the logo slightly and then in March 2017, unveiled a new logo which removed the blue box line around the artistic 'A' and revealed a more rounded, 3D look for the logo as well as a new font for the word 'ALDI', further differentiating it from the Aldi Nord logo which had shared the same font for the brand until then.[78][79]

Sustainability[edit]

Between 2012 and 2019, Aldi's UK operations became "carbon neutral",with investments insolar,green energy,energy efficiency andoffsetsreducinggreenhouse gas emissionsby 53 per cent per square meter of sales floor.[80]On 4 March 2020, Aldi announced that all its suppliers must utilize recyclable, reusable, or compostable packaging by 2025.[81]In January 2024, the company announced plans to eliminate plastic bags from its 2,300 US stores. Cloth bags would still be available for customer use. It also said it would aim to use naturalrefrigerantsin its US stores by the end of 2035. Other grocery retailers were making similar moves at the time of the announcement.[82][83]

Reputation[edit]

In the United Kingdom, Aldi has wonSupermarket of the Yeartwo years in a row (2012/13),[84]and in 2013, Aldi won theGrocer of the Year Award.[85]In February 2015, Aldi narrowly lost toWaitrosefor the title of Supermarket of the Year 2015. In April 2015, Aldi overtook Waitrose to become the United Kingdom's sixth-largest supermarket chain.[86]

In February 2017, Aldi overtook theCo-opto become the United Kingdom's fifth largest supermarket chain.[87]In May 2017, Aldi lost out toMarks & Spencerfor the title of Supermarket of the Year 2017 (published by the magazineWhich?).[88]According to research firm Kantar Worldpanel, nearly two-thirds of households within the UK now visit an Aldi or Lidl branch at least once every 12 weeks.[89]

In the United States, due to the relatively low staffing of Aldi locations compared to other supermarket chains, Aldi has a reputation of starting employees out at significantly higher thanminimum wage,unusual among American supermarkets.[90][91]

In Ireland, Aldi has been accused of a "lack of corporate responsibility" to their farmer suppliers by theIrish Farmers' Association.[92]

Aldi was named 2018 "Retailer of the Year" by Supermarket News.[93]

Australian trucking giantScott's Refrigerated Logisticswas plunged intoreceivershipandliquidationon 3 March 2023 after going intovoluntary administrationthat February. This sparked protests from theTransport Workers' Unionwho put the blame on Aldi Australia for increasing strains on the company[94]during the last few years of shortages and inflation.

Subsidiaries and joint ventures[edit]

Subsidiaries include the mobile network operator "Aldi Talk", the alcoholic drink brand "Aldi Alcohol", and petrol station retailer "Diskont". Multimedia products such asCD-RandDVD-Rrecordable media,boomboxes,DVD players,digital cameras,camcorders,andturntablesare branded as "Tevion" and "Maginon".[95][96][97][98]

Aldi Talk[edit]

Main article:Aldi Talk

Aldi has amobile virtual network operatorin Germany called Aldi Talk, also known as "MEDIONmobile" (Service providerisMedion).[99]Aldi also operates a similar network inAustraliausingTelstra's network, called "ALDImobile".[100]Aldimobile is also inSwitzerlandbySunrise LLC.InAustriaandSlovenia,Hofer stores serve as distributors for the brand HoT Hofer Telekom (Service provider is Ventocom).

Aldi Alcohol[edit]

Aldi sells low cost alcohol from its alcohol stores. Until March 2016, Aldi had an alcohol website serving the east coast of Australia. This has now been closed down, citing it wishes to focus on expanding the supermarket chain across Australia. In November 2019, Aldi announced same-day beer and wine delivery via a partnership withInstacartin the US.[101]

Diskont[edit]

In Austria through its subsidiary Hofer, Aldi has a joint venture with the local petrol retailerOMV Downstream GmbH,to create someno frillspetrol stationscalled Diskont.[102]The 85 stations in Austria are on or near the stores, providingself-serveunleadedordiesel fuelby card-operated pumps. These have been in operation since 2009.

Aldi Insurance[edit]

Aldi launched Aldi Insurance in Australia in June 2024. The company provides home and contents insurance, car insurance and landlord’s insurance backed by Honey Insurance andRACQ Insurance.[103]

Notes[edit]

  1. ^Aldi purchased Iowa's Benner Tea chain and opened its first United States store in Iowa in 1976.[26]

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