Aldi: The European Hard Discounter's Strategy in Australia

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Case Details:

Case Code : BSTR296
Case Length : 15 Pages
Period : 2001-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Aldi
Industry : Retail
Countries : Australia

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Aldi was started up by Karl and Theo Albrecht (Karl and Theo) after World War II. The Albrecht siblings born in 1920 and 1922 respectively, were sons of a miner, and lived in Schonnebeck , Germany. When Karl and Theo were children, their father contracted a lung disease, and quit his mining job to work in a bakery.

Their mother ran a small grocery store near their home to make ends meet. Karl and Theo attended middle school and then went into training, the former at a delicatessen and the latter at his mother's grocery store...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Aldi Entry & Expansion in Australia

Aldi decided to enter Australia during the late 1990s and Michael Kloeters (Kloeters), who was working with Aldi Süd in Germany, was assigned the responsibility of launching Aldi's business in Australia. Recalling the proposal, Kloeters said, "For me, it was simply a question of do I want to tackle another challenge. I said yes, but I had a pre-condition, which was to come and have a look at the Australian marketplace."...

Stores and Merchandise Management

Aldi was officially rated by GROCERYchoice as the best value supermarket and cheapest for basic staple products in Australia. The company's operating strategy was found to be unique in the Australian retail with an aggressive discount pricing strategy.

The international practices wherein the customers had to pack their own purchases and the absence of fancy displays and a trolley hire system were followed in Australia too...

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