The German Albrecht brothers made economic history with Aldi. They were at the centre of the discount concept. Now there is a change of strategy for Aldi on the German home market, as the discounter will now also supply brand name articles. The origins of Aldi, however, go back to the year 1913.
One hundred years ago the Albrecht family laid down the foundations for the current trade giant Aldi. The baker Karl Albrecht (born 1886, died 1943) started a trade in baking products on the 10th of April 1913. Generations later the independent subsidiaries Aldi Nord and Aldi Süd are active in 17 countries in Europe, North America and Australia. On the German home market the Aldi prices are a guide for competitors.
The men behind Aldi's success story are the company's founder's sons; Karl Junior (born in 1920) and Theo Albrecht (born 1922, died 2010). After their father's death they took over their parents business and developed the discount concept. "The Albrecht family made economic history by developing a format that no-one in the world knew about until then," says Michael Gerling, manager of the Cologne Trade Institute EHI. "In a time in which pre-packaged wares and self service were entering the food trade the Albrechts family had the idea to concentrate on things people need every day, without offering a large variety," he says.
Partially due to the limited assortment, Aldi was able to keep the costs down more than other companies. Aldi sold its products from crates from the start, and the shelves are stocked with boxes of products, which also keeps the prices down.
With a larger supply of baking products Aldi has been returning to its roots for a few years now. Aldi Süd started building baking departments in its shops in 2009. Aldi Nord also started modernising the shops in Europe in 2011. The newest shops will have wider aisles and better lighting, and will also get bakery departments.
