Aldi casino

German multinational discount supermarket company

Not to be confused with Audi.

Aldi (stylised as ALDI^[6]) is the common company brand name of two German multinational family-owned discount supermarketchains operating over 12, stores in 18 countries.^[7][8] The chain was founded by brothers Karl and Theo Albrecht in , when they took over their mother's store in Essen. The business was split into two separate groups in , that later became Aldi Nord, headquartered in Essen, and Aldi Süd, headquartered in Mülheim.^[9][10]

In , they introduced the name Aldi (a syllabic abbreviation for Albrecht Diskont),^[11] which is pronounced [ˈaldiː]^ⓘ. In Germany, Aldi Nord and Aldi Süd have been financially and legally separate since , although both divisions' names may appear as if they were a single enterprise with certain store brands or when negotiating with contractor companies. 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, stores in western, northern, and eastern Germany, and Aldi Süd's 32 regional companies with 2, stores in western and southern Germany.^[13] Internationally, Aldi Nord operates in Belgium, The Netherlands, France, Luxembourg, Poland, Portugal and Spain, while Aldi Süd operates in Australia, Austria, China, Hungary, Ireland, Italy, Slovenia, Switzerland, United Kingdom and United States. In Austria and Slovenia, Aldi operates stores under the Hofer brand. Aldi Nord also owns the Trader Joe's grocery chain in the United States which operates separately from the group.^[14][15] Aldi Süd announced in August that it will buy Winn-Dixie and Harveys supermarkets in the southern United States.^[16]

History[edit]

Karl and Theo Albrecht's mother opened a small store in a suburb of Essen, Germany, in ^[15] Their father was employed as a miner and later as a baker's assistant. Karl and Theo were born in and respectively.^[17] Theo Albrecht completed an apprenticeship in his mother's store, while Karl Albrecht worked in a delicatessen.

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

The brothers' idea was to subtract the legal maximum rebate of 3% before sale. The market leaders at the time, which often were co-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 , there were stores in Germany.^[17]

Split[edit]

The brothers split the company in , 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 shops.^[20] In , they introduced the name Aldi—short for Albrecht-Diskont, which translates into English as "Albrecht Discount".^[21] Aldi Nord and Aldi Süd have been financially and legally separate since ^[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 per cent of the company's issued capital.^[23]

International expansion[edit]

Aldi started to expand internationally in , when Aldi Süd acquired the grocery chain Hofer in Austria;^[24] Aldi Nord opened its first stores abroad in the Netherlands in ,^[25] and other countries followed. In , Aldi Süd opened its first store in the United States in Iowa,^[a] and, in , Aldi Nord acquired Trader Joe's.^[15] After German reunification and the fall of the Iron Curtain, Aldi experienced a rapid expansion. The brothers retired as CEOs in ; control of the companies was placed in the hands of private family foundations, the Siepmann Foundation (Aldi Süd) and the Markus, Jakobus and Lukas Foundation (Aldi Nord, Trader Joe's).^[8]

Acquisition of Winn-Dixie/Harvey’s[edit]

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

Business organization[edit]

Germany[edit]

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

The former East Germany is served by Aldi Nord, except for one Aldi Süd in Sonneberg, Thuringia, whose regional office is in Bavaria. 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).

In December , a survey conducted by the German market research institute Forsa found 95% of blue-collar workers, 88% of white-collar workers, 84% of public servants, and 80% of self-employed Germans shop at Aldi.^[31] One of Aldi's direct competitors is Lidl.^[32]

Internationally[edit]

The Aldi group operates over 12, 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 the Trader Joe's grocery 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, Slovenia and Switzerland.^[33] In Austria and Slovenia Aldi Süd operates their stores under the Hofer brand. Aldi Süd's first Switzerland store opened in , and it has operated in Hungary since Aldi Süd had invested an estimated €m ($1bn; £m) in Greece from November until pulling out on 31 December ^[34]

While Aldi Nord has renamed its Dutch and Belgian subsidiaries Combi and Lansa to the Aldi Markt/Aldi Marché brand, Aldi Süd tries to maintain a regional appearance, branding its stores Aldi Süd in Germany, Aldi Suisse in Switzerland, and Hofer in Austria and Slovenia.^[35]

Aldi launched in Great Britain, on 5 April , when it opened its first store there in Stechford, Birmingham, using the wholly owned English registered company of Aldi Stores Limited. In October , Aldi opened the th store in Great Britain.^[36] By , Aldi had over stores there and was opening them at a rate of more than one a week.^[37] A report in February , indicated that the company was operating approximately outlets in the UK and planned to have 1, stores by ^[38] In , Aldi stores in Great Britain reported that due to the annual Veganuary challenge its sales of plant-based foods were % higher in January that year than in January ^[39] In September it was confirmed that Aldi had overtaken Morrisons to become Britain's 4th largest supermarket with a % market share.^[40] In September , Aldi opened its th location in the UK and shared its plan to open another as a long-term goal.^[41]

Aldi entered the Irish market in In March , its th store in Ireland opened in Cahersiveen (County Kerry).^[42]

Aldi opened its first Australian store in Sydney in , and has grown rapidly since, maintaining a % market share as of early ^[43][44] It has still yet to open any stores in the state of Tasmania or in Northern Australia in major cities such as Hobart or Darwin, much to the frustration of the population.^[45] Financial website Canstar rated Australia's supermarkets based on the feedback of 2, consumers who had visited one in the past month with Aldi coming out on top.^[46] By August , there were Aldi stores in Australia; Aldi had approximately 11 percent share of the grocery market in Australia in the previous year with sales of $ billion. Aldi opened 26 new stores in , but Aldi Australia CEO Tom Daunt predicted that "store growth would be slower in the future".^[47][48]

Aldi Limited (New Zealand) was incorporated in ^[49] The company did not expect to open stores in the near future as of A news report in January , indicated that the country did not have enough consumers to warrant new supermarket chains; the report predicted that such stores would not arrive "any time soon".^[50]

Aldi Süd expanded to the United States under the Aldi banner, having expanded throughout the Eastern and Midwestern US^[51] Aldi Süd revealed expansion plans in , and expanded into the Southern California market, where Aldi Nord's Trader Joe's is based.^[52] Reports in August , stated that the company was in the process of using a $ billion investment in order to expand to 2, stores in the country by year end ; it was also investing an extra $ billion to renovate 1, of its US stores.^[53] By February , there were over 1, 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 with Instacart. ^[54]

Aldi Süd opened its first 10 stores in Italy on 1 March ^[55] In the first year of operation, 51 outlets were opened. By October , there were 66 stores in northern Italy.^[56] At that time, the company was planning to open 80 new stores in the country as well as a distribution centre in Landriano.^[57]

In mid, Aldi Süd opened two small, upscale, stores in Shanghai. Two more were opened in late^[58][59] This is the first of a planned one hundred such locations in the city. The company stated that "the emphasis is on fresh produce and ready meals".^[60]

In December , Aldi bought supermarkets and three warehouses of Leader Price and another 2 Casino supermarkets in France for €‎ million from Casino Group.^[61] The transaction is part of Aldi's plan to catch up with Lidl in France.^[62]

In February , Aldi said that it is planning to open new stores in , in the United States (Arizona, California, Florida and the Northeast region).^[63]

In January , Aldi launched its Shop&Go concept in Greenwich, London.^[64]

On 9 December , Aldi Nord issued a press release stating that Aldi is withdrawing from Denmark^[65] after 45 years of operations there. of the chain's total of stores will be taken over by Norwegian competitor Rema ^[66][67] In August , it was announced the Danish Competition and Consumer Authority had&#;approved the Rema acquisition.^[68]

Geographic distribution[edit]

Business practices[edit]

On 9 August , 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, stores in the United States by ^[72][73] On 18 September , Aldi announced its intent to offer grocery delivery in the United States. Aldi began testing grocery delivery in in select cities such as Atlanta, Georgia, and Chicago, Illinois.^[74]

On 4 March , Aldi announced that all its suppliers must utilize recyclable, reusable, or compostable packaging by ^[75]

In-store layout[edit]

Aldi stores are noted as examples of so-called no-frills stores 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 are own brands, with the number of other brands usually limited to a maximum of two for a given item.

Aldi mainly sells exclusively produced, custom-branded products (often very similar to and produced by major brands^[76]) with brand names including Grandessa, Happy Farms, Millville, Simply Nature, and Fit & Active.

Branded products carried include HARIBO in Germany, Knoppers in Belgium, France, and the United States, Marmite and Branston Pickle in Great Britain; and Vegemite and Milo in Australia. Unlike most shops, Aldi does not accept manufacturers' coupons, although some US stores successfully experimented with store coupons (e.g. $10 off a $25 purchase).

In addition to its standard assortment, Aldi has weekly special offers,^[77] 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 a Commodore 64 in , resulted in those products selling out in a few hours.^[78]

Aldi is the largest wine retailer in Germany.^[79] 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.

In March , Aldi Süd launched smaller-format stores in the UK called Aldi Local, with the first store in Balham, 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.^[80]

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 , Aldi UK opened its first cashierless store in Greenwich.^[81]

Payments[edit]

Until , Aldi stores accepted only cash (German stores have since accepted domestic Girocarddebit cards, and nowadays they also accept such common payment options as Visa, Mastercard, Apple Pay, Google Pay and more). Debit cards, also, are accepted in the United States, United Kingdom, Italy, Austria, Belgium, Denmark, France, Portugal, Spain, the Netherlands, Switzerland, Ireland, Australia, Slovenia, and Hungary. Aldi stores in the United States allow supplemental nutritional assistance program payments via EBT (Electronic Benefits Transfer) but do not support payments through the Women, Infants, and Children program.

In Ireland, ALDI stores accept EMV ("chip-and-PIN") Visa and MasterCard debit and credit cards, as well as Apple Pay and Google Pay. Visa Electron, Visa Debit (formerly Delta) and Maestro debit cards are also accepted. Card, phone and contactless payments are not subject to any surcharge and phone payments can be used for any amount, when authenticated with biometrics. AmEx is not accepted and non–chip-and-PIN cards (no longer used in Ireland) cannot be processed.^[82]

All four major credit cards are accepted in the United States since March (MasterCard, Visa, American Express and Discover Card). Electronic Benefit Transfer cards are also accepted in the United States.^[83] Outside of the United Kingdom, Ireland, Italy, the United States, the Netherlands and France, Aldi generally does not accept credit cards, though Aldi Australia accepts MasterCard and Visa for a % surcharge. From the beginning of Aldi's operations in France, all credit cards (referred to in French as Carte Bleue) (Visa, American Express or MasterCard) were accepted because of the French banking system. Aldi has accepted Visa/MasterCard without surcharge since October throughout Great Britain (previously, only in Scotland),^[84] and similarly throughout Germany from September ^[85][86][87]

On 7 July Aldi Suisse became one of the first companies to accept the Apple Paycontactless payment system.^[88][89]

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 And since , Aldi began producing a series of Christmas adverts to rival John Lewis' featuring a carrot named Kevin. In , Aldi partnered with British television channel Channel 4 to sponsor its food programming strands.^[90]

In Australia, television advertising is common and the current ads are listed on the Australian website.^[91]

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

In , Aldi UK also partnered with Channel 4 to sponsor its food programming.^[92]

Logos and branding[edit]

The two stores Nord and Süd have distinct logos with Nord displaying the entire 'A' for Aldi while Süd unveiled a logo in which displays only half. In , Aldi Süd modified the logo slightly and then in March , 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.^[93][94]

Sustainability and environmentalism[edit]

In January , the company announced plans to eliminate plastic bags from its 2, US stores. Cloth bags would still be available for customer use. It also said it would aim to use natural refrigerants in its US stores by the end of Other grocery retailers were making similar moves at the time of the announcement. ^[95][96]

Reputation[edit]

In the United Kingdom, Aldi has won Supermarket of the Year two years in a row (/13),^[97] and in , Aldi won the Grocer of the Year Award.^[98] In February , Aldi narrowly lost to Waitrose for the title of Supermarket of the Year In April , Aldi overtook Waitrose to become the United Kingdom's sixth-largest supermarket chain.^[99]

In February , Aldi overtook the Co-op to become the United Kingdom's fifth largest supermarket chain.^[] In May , Aldi lost out to Marks & Spencer for the title of Supermarket of the Year (published by the magazine Which?).^[] 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.^[]

Between and , Aldi's UK operations became "carbon neutral", with investments in solar, green energy, energy efficiency and offsets reducing greenhouse gas emissions by 53 per cent per square meter of sales floor.^[]

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 than minimum wage, unusual among American supermarkets.^[][]

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

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

Australian trucking giant Scott's Refrigerated Logistics was plunged into receivership and liquidation on 3 March after going into voluntary administration that February. This sparked protests from the Transport Workers' Union who put the blame on ALDI Australia for increasing strains on the company^[] 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 as CD-R and DVD-R recordable media, boomboxes, DVD players, digital cameras, camcorders, and turntables are branded as "Tevion" and "Maginon".^[][][][]Personal computer and computer monitor, computer mouse, keyboard, laptop and tablet pc branded as Medion.

Aldi Talk[edit]

Main article: Aldi Talk

Aldi has a mobile virtual network operator in Germany called Aldi Talk, also known as "MEDIONmobile" (Service provider is Medion).^[] In , it was estimated that there would be up to eight million customers in Germany, making the company the market leader among mobile virtual network operators.^[]

Aldi also operates a similar network in Australia using Telstra's network, called "ALDImobile".^[] Aldimobile is also in Switzerland by Sunrise LLC. In Austria and Slovenia, 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 , 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 , Aldi announced same-day beer and wine delivery via a partnership with Instacart in the US.^[]

Diskont[edit]

In Austria through its subsidiary Hofer, Aldi has a joint venture with the local petrol retailer OMV Downstream GmbH, to create some no frillspetrol stations called Diskont.^[] The 85 stations in Austria are on or near the stores, providing self-serveunleaded or diesel fuel by card-operated pumps. These have been in operation since

Notes[edit]

References[edit]