Aldi: A Low-Cost Retail Giant's Distinctive Business Practices


Aldi: A Low-Cost Retail Giant's Distinctive Business Practices
Case Code: BSTR252
Case Length: 16 Pages
Period: 1945-2006
Pub Date: 2007
Teaching Note: Not Available
Price: Rs.400
Organization: Aldi
Industry: Retail
Countries: Germany
Themes: Business Strategy
Aldi: A Low-Cost Retail Giant's Distinctive Business Practices
Abstract Case Intro 1 Case Intro 2 Excerpts

Background

Aldi was set up by Karl and Theo Albrecht (Karl and Theo) soon after the Second World War. The Albrecht siblings (born in 1920 and 1922 respectively) were sons of a miner, and lived in Schonebeck, a blue collar suburb in the Essen region of 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 maintained 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.

When the Second World War broke out in 1939, both the brothers were called up for military duty. After the war ended in 1945, they returned home to take over their mother's store. In the post-war years, the brothers expanded the business rapidly. In 1948, soon after the German currency reform, the Albrechts incorporated their grocery business as the Albrecht Discount Company. At this time, the company had 13 stores in the Ruhr Area of Germany....

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