Aldi Vs Lidl in US: Who will lead the Grocery Retail Disruption?
Case Code: BSTR558
Case Length: 11 Pages
Pub Date: 2019
Teaching Note: Available
Organization: Aldi, Lidl
Themes: Corporate Strategy, Growth Strategy
Abstract Case Intro 1 Case Intro 2 Excerpts
Background of the Grocers
Aldi-short for Albrecht Discount -began as a small food store in the mining town of Essen, Germany, in 1913. It was opened by Anna Albrecht and was taken over by her sons, Karl Albrecht (Karl) and Theo Albrecht (Theo), in 1948. By 1960, the Albrecht brothers had expanded the business and owned over 300 stores in Germany. While the vast majority of supermarket chains were continuously increasing their product offerings and selling space, the Albrecht brothers adopted a cost-saving strategy. Aldi offered grocery shopping with a smaller choice of goods than other grocery stores offered. Although the store stocked big brands, about 90 percent of its products were private brands. It also worked closely with established suppliers to make own-brand products...
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