Aldi: A Low-Cost Retail Giant's Distinctive Business Practices
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
"There are people who say there is no room to compete with Wal-Mart on price, but Aldi has figured out a way to do it."
"We certainly recognize Aldi as being a tough competitor."
- Bill Wertz, a spokesman for Wal-Mart, in 2004.3
"We run our businesses extremely efficiently and reflect that in the price. There is no such thing as a free carrier bag or a free loyalty point. The cost is always passed on to the customer."
- Tony Baines, Head of Buying for Aldi in the UK, in 2005.4
The Land of the Hard Discounter
Wal-Mart had entered Germany in 1998, but had found the going tough from the very beginning. The main reason for this was the clout enjoyed by hard discounters9 like the Aldi Group (Aldi) and Lidl & Schwarz Stiftung & Co (Lidl) in the country.
1] An international retail consultancy based in
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