Aldi stores proliferate in urban areas




Aldi, a German family-owned, non-union discount retailer, is making inroads in large U.S. urban areas where Wal-Mart has faced opposition from unions and politicians,

the

New York Times

reported.

Citing an official at Aldi’s U.S. division, the

Times

article said that Aldi, which first came to the U.S. in 1976, at first opened only about 25 stores a year. In the last few years, it has added more than 250 stores and plans 80 more in 2011 and in 2012.

Aldi was founded by the Albrecht brothers, who worked in their mother’s German retail business and took it over in the 1940s. In 1961, they introduced the Aldi name, short for Albrecht Discount.

The

Times

article cited a

Stores

magazine report that said the Aldi group was the world’s eighth-largest retailer in 2009 (the most recent figures available), with about $67.7 billion in revenue.

“About 95 percent of its goods bear an obscure private label,” the

Times

report noted.

- Advertisement -

The article noted that the higher-end Trader Joe’s is owned by an Albrecht family trust.

The stores cut costs by having fewer product lines, charging a 25-cent deposit for shopping carts, accepting cash only, lacking a butcher and bakery and selling fruit in bags, the

Times

report said. (Source:

New York Times,

March 30, 2011.)

About the Author(s)

This is your 1st of 5 free articles this month.

Introductory offer: Unlimited digital access for $5/month
4
Articles Remaining
Already a subscriber? Please sign in here.

Related Articles

KEEP IT IN THE FAMILY

The Family Business newsletter. Weekly insight for family business leaders and owners to improve their family dynamics and their businesses.