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.
The Land of the Hard Discounter Contd...
Aldi was known for its 'no-frills' style of retailing, which offered customers low prices and nothing else. The company managed to keep prices low with a low cost business model that eliminated all unnecessary expenses and passed on the savings to the customers.
When the Second World War broke out in 1939, both the brothers were called up for military duty. After the war ended in 1945, they returned home to take over their mother's store. In the post-war years, the brothers expanded the business rapidly. In 1948, soon after the German currency reform, the Albrechts incorporated their grocery business as the Albrecht Discount Company. At this time, the company had 13 stores in the Ruhr Area of Germany.12...
11] "The Next Wal-Mart?"BusinessWeek, April 26,
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