ALDI, short for "ALbrecht DIscount", is a discount supermarket chain based in Germany. The chain is made up of two separate groups, ALDI Nord (North - operating as ALDI MARKT) and ALDI Süd (South - operating as ALDI SÜD), which operate independently from each other in specific market boundaries. The individual groups were originally owned and managed by brothers Karl Albrecht and Theo Albrecht; both have since retired. However, they are still Germany's richest men, earning an estimated €1.5 billion per year. Aldi's German operations currently consist of Aldi Nord's 35 individual regional companies with about 2,500 stores in Northern and Eastern Germany, and Aldi Süd's 31 regional companies with 1,600 stores in Western and Southern Germany. Internationally, Aldi Nord operates in Denmark, France, the Benelux countries, the Iberian peninsula and Poland, while Aldi Süd operates in countries including Ireland, the United Kingdom,Hungary, Austria and Slovenia (operating as Hofer), the United States and Australia. According to a survey conducted in 2002 by the German market research institute Forsa, 95% of blue-collar workers, 88% of white-collar workers, 84% of public servants and 80% of self-employed Germans shop at Aldi. Aldi's main competitor, nationally and internationally, is Lidl.

History

When the two brothers split the company in 1960 over a dispute whether they should sell cigarettes at the till or not, they owned 300 shops with a cash flow of DM 90 million per year. In 1962, they introduced the Aldi brand name. Both groups are financially and legally separate since 1966, though they describe their relationship as a "friendly relation"; they will also occasionally appear as if they were a single enterprise, for example with certain house brands, or when negotiating with contractor companies. Aldi expanded internationally in the 1970s and 1980s, the number of outlets skyrocketing, especially after German reunification and the fall of the Iron Curtain. The Albrecht brothers retreated from their positions as CEOs in 1993 and gave most of their wealth to foundations.

National business organization

The Aldi Nord group currently consists of 35 independent regional branches with approximately 2,500 stores. Aldi Süd is made up of 31 companies with 1,600 stores. The border between their territories runs from the Rhine via Mülheim an der Ruhr, Wermelskirchen, Marburg, Siegen and Gießen eastwards up to slightly north of Fulda. Former East Germany is completely served by Aldi Nord, save for a single Aldi Süd store in Sonneberg, Thuringia that is associated with a Bavarian regional office. The regional branches are organised as limited partnerships with a regional manager for each branch who reports directly to the head office in Essen (Aldi Nord) or Mülheim an der Ruhr (Aldi Süd). The regional distribution centres are usually located away from urban areas, but always near an autobahn to facilitate transporting the merchandise to the individual stores. Aldi Nord, for example, has distribution centres in Bargteheide, Barleben, Beucha, Beverstedt, Datteln, Essen, Greven, Hann. Münden, Hemmoor, Hesel, Herten, Horst, Hoyerswerda, Jarmen, Lehrte, Lingen, Minden, Nortorf, Radevormwald, Rinteln, Salzgitter, Scharbeutz, Schloß Holte, Schwelm, Werl and Weyhe. The coffee roaster of Aldi Nord is also located in Weyhe.