Professional Documents
Culture Documents
Aldi History
1946: Karl y Theo Albert arrive from Russia and inherit the family store
1961: The two brother separate operations into Albrecht Nord and Albrecht Sud
1962: First Aldi (Albrecht Discount) store in Dortmund
1967: First store outside Germany (Austria)
1971: Theo Albrecht is kidnapped by a lawyer and his partner the Albrechts pay DM 7 million
1976: Aldi enters the United Sates of America
1994: Karl Albrecht hands over day-to-day business to Ulrich Wolters
1996: Aldi starts selling PCs
2000: Following differences on how to react to Wal-Marts entrance into the German market Aldi Sud
puts the Sud in its logo
2000: Aldi Sud starts using barcode scanners in its stores
Snapshots of Aldi
Family run business
In its private label segments it owns 30% of the German grocery retail market
Finances
Sales
Margin Estimates
Payment terms
Other data
Labor cost
Sales per m2
Average sales
Finances
Sales: 40Bn in 2005
30% Aldi Nord, 30% Aldi sud, 40% International
CAGR 1997 2002: 15.2%
Margin Estimates
Aldi Nord 4.3%
Aldi Sud 6.2%
Payment terms
30 days
Other data
Lidl 4.9m
Netto 3.2m
Penny 3.1m
Plus 2.4m
Simplicity
Lowest cost, high quality, most efficient operations
Orders
5 times per week
Distribution centers
One per 50 to 80 stores
Most product cross-docked
40,000 employees and no unions but high satisfaction of employees
Operations
Inventory 7 days (52 turns per year) vs. 43 turns in Wal-Mart
Product Portfolio
600-700 SKU with total of 7,000 SKUs in the group
True purchasing power
INVENTORY MANAGEMENT
Inventory Management
Standardized
Orders aggregated demand of stores processed at DC generate order list, confirmed by store employees quick not
need of IT Kanban
DC management periodically checks stores on impression, cleanliness, parking, price tags etc.
Price tags
Small boxes