ALDI History and Current Groups
Aldi is one of the largest discount supermarket chains with over 10,000 locations in over eighteen unique countries. Founded in 1946, the company has grown from a single store to over 300 shops with an annual revenue of approximately DM90 million by 1960. Shortly thereafter, Aldi split into two separate entities, which operated independently within specific geolocations (Aldi Nord and Aldi Süd). The company split into separate entities due to an owners’ dispute regarding whether or not the chain should sell cigarettes.
Starting in 1967, Aldi Süd began its international expansion into Austria through acquisitions of grocery chains. In 1973, Aldi Nord began its international expansion into the Netherlands …show more content…
A system of metal gates and turnstiles force customers to exit through checkout, cash or debit cards only, and requiring a coin or token to use a cart (refunded upon return of the cart) are all common practices in each of the Aldi locations.
Aldi stores typically sell inexpensive staple items, often times representing the Aldi brand. From a competitive landscape, other brands are limited in Aldi stores as the company encourages consumers to purchase the Aldi brand while also keeping stores smaller since they offer less brands per product. Trader Joe’s, for example, has up to 80 percent of its inventory represented by the Trader Joe’s brand.
Cost Structure
From an operational cost perspective, Aldi tries to keep costs as minimal as possible. Upon entering an Aldi store, one would not find standard shelving, which eliminates the needs of stock boys. Instead, products are brought into the stores via a forklift, where packages are then stacked. At any point in time, one is likely to see only two different types of staff members: a forklift operator or cashiers. The unintended effect of this strategy is the ability to start employees at a much higher than normal wage, often times significantly higher than minimum wage requirements. By utilizing lean practices like these, Aldi focuses on reinforcing a self-service culture in each of their
Aldi is one of the largest discount supermarket chains with over 10,000 locations in over eighteen unique countries. Founded in 1946, the company has grown from a single store to over 300 shops with an annual revenue of approximately DM90 million by 1960. Shortly thereafter, Aldi split into two separate entities, which operated independently within specific geolocations (Aldi Nord and Aldi Süd). The company split into separate entities due to an owners’ dispute regarding whether or not the chain should sell cigarettes.
Starting in 1967, Aldi Süd began its international expansion into Austria through acquisitions of grocery chains. In 1973, Aldi Nord began its international expansion into the Netherlands …show more content…
A system of metal gates and turnstiles force customers to exit through checkout, cash or debit cards only, and requiring a coin or token to use a cart (refunded upon return of the cart) are all common practices in each of the Aldi locations.
Aldi stores typically sell inexpensive staple items, often times representing the Aldi brand. From a competitive landscape, other brands are limited in Aldi stores as the company encourages consumers to purchase the Aldi brand while also keeping stores smaller since they offer less brands per product. Trader Joe’s, for example, has up to 80 percent of its inventory represented by the Trader Joe’s brand.
Cost Structure
From an operational cost perspective, Aldi tries to keep costs as minimal as possible. Upon entering an Aldi store, one would not find standard shelving, which eliminates the needs of stock boys. Instead, products are brought into the stores via a forklift, where packages are then stacked. At any point in time, one is likely to see only two different types of staff members: a forklift operator or cashiers. The unintended effect of this strategy is the ability to start employees at a much higher than normal wage, often times significantly higher than minimum wage requirements. By utilizing lean practices like these, Aldi focuses on reinforcing a self-service culture in each of their