Aldi Nord and Aldi Süd are apparently facing a merger, according to "Manager Magazin". An article claims that the discounters want to operate as a 'Nord-Süd' entity from 2022 onwards. The companies are already moving closer together.
Increased pressure on discounters
Aldi Süd contradicts the report. No "organizational or legal merger of the corporate groups" is planned, according to a statement published by the discounter. The economic independence of the houses would be preserved. However: Aldi Süd admits that the discounter is working much closer with Aldi Nord in purchasing than in the past.
The background to the planned mega-merger between Aldi Nord and Süd is the increased pressure on the discounters in recent years, according to the media report. The two retail chains have recently had to brace themselves against more difficult conditions - because the competition from Edeka and Rewe, but also from other discounters such as Lidl, is becoming increasingly tough.
Aldi Nord in the red
Aldi Nord countered the downward trend with a multi-billion-euro modernization program and, due to high expenses and a drop in sales (because stores were closed due to reconstruction measures), had to post a loss for the first time in fiscal year 2018. In the past, Aldi Süd had regularly modernized its stores. However, the separation of the discounters causes high costs, which are not incurred by competitors. Recently, Aldi Süd has only just reached the black zero. Recently, the two Aldis had tried to make common cause in the purchase of goods and also in their external appearance.
The merger is intended to eliminate the double structures. According to the media report, the discounters are hoping for greater efficiency and savings in personnel costs of up to 50 percent.
Source: STERN.de
