The success of every business in the stock exchange is not guaranteed. Stock market investments are unpredictable and face a whirlwind of ups and downs in the journey to survive and sustain as the most profit-making enterprise to retain investors.
Aldi’s shares in the ASX (Australian Securities Exchange) are a challenge because, being a small supermarket chain and a family-run business, they have yet to issue their shares on any stock exchange market.
Many other retailers and supermarket chains like Coles Group Ltd and Woolworths Group Ltd need help to survive in the growing presence of Aldi because of their sustained reputation.
But then came COVID-19, and it changed the game for many retail businesses.
Aldi was expanding their stores rapidly, but this global pandemic pushed the public inside its homes and visiting stores to buy their daily essentials as groceries became a thing of the past. The online market flourished, and big guns like Amazon profited and had the advantage over its in-store retailers.
With the growing demand and tough competition, Aldi planned to enter the e-commerce world. The ASX shares will disrupt because Aldi is a preferred store by the public and will affect its other retail counterparts and their ASX shares.
Let’s dive deep into Aldi’s journey from a small grocer to dominating the market, giving other retailers a run for their businesses.
What is Aldi, and how it became the name it is today?
Aldi is the name today in the retail industry. Its brilliant and sustainable business model is the reason behind its ongoing success in the market.
The first-ever discount supermarket Aldi is a family owned business currently run by two brothers, Karl, and Theo Albrecht, and was founded in 1961 in Essen, Germany.
- Aldi’s USP and its success formula lie in their
- They have low prices than their counterparts
- The Great quality at the most reasonable prices
- The firs-ever discounted grocers
- They source locally grown products and avoid any middle-men
- Focused more on customer satisfaction and no marketing gimmicks
- They cut down their expenses by employing fewer people but efficient ones
- Aldi has invested in sustainable business ideas instead of spending thousands on fancy. As the first-ever self-service store, Aldi focused on increasing productivity, profits, and consumer satisfaction.
Aldi’s net worth is 177.40 billion AUD by the 2021 report and is likely to grow in the coming years.
Aldi’s brief history and some facts
Karl and Theo’s mother opened a small grocery store in the suburbs of Essen, Germany, in 1913. In 1945, the brothers took charge of their mother’s store and soon opened another retail store.
The brothers separated and split the business in two in 1960 over a dispute on whether to sell cigarettes. Although owned individually, together, in 1962, Theo and Karl introduced ALDI – short of Albrecht-Diskont, which translates as “Albrecht Discount” in the English language.
After the death of a few family members, the business is still family-owned by their successors and controlled by the Albrecht family, which holds 80.5 % of the company’s combined capital.
The brothers, Karl and Theo, retired as CEOs in 1993, and the control of ALDI Sud came into the hands of the Siepmann Foundation and ALDI Nord to Markus Foundation.
At the time of his death in 2014, Karl Albrecht was the wealthiest man in Germany, with a fortune of 39 billion AUD.
Theo Albrecht was the second richest man until 2010.
Distinct features of Aldi.
It is not just any reason that Aldi’s causing insecurity to their retail counterparts. They follow a strict and ethical business model that sets them apart from others in the industry.
Aldi is now a two-family business, Aldi Sud and Aldi Nord, operating from different locations.
What sets Aldi apart:
- They are consistent: Their prices remain the same throughout the years and do not change during festive seasons. The prices are cheap 24*7, leading to building customer trust that Aldi is a brand that gives discounts every day.
- They are simple stores: Aldi’s stores are simple to shop in. They have a no-frills policy, just basic and efficient shopping.
- They adopted the traditional Marketing strategy: They used no over-the-top advertising campaigns to promote their brand. They relied on old-school word-of-mouth marketing, and it helped them flourish.
- They chose Efficient employees: They adopted a smart human resource strategy. They focus on employing fewer people and select only efficient, reliable employees.
- They are the discount masters: Their discounts are available for all seasons, around the year. They promote no coupons or special codes policy in the supermarket.
- They support the locals: Aldi tries to promote local suppliers and local brands through their supermarkets. They partner with local vendors and sell the best quality at affordable prices.
Countries in which Aldi is operating:
Aldi is now a two-part enterprise, Aldi Sud and Aldi Nord.
Aldi US has 1,600 stores across 35 states and more than 6,700 stores worldwide.
The Aldi Sud operates in Australia, Austria, China, Germany, Hungary, Ireland, Italy, Slovenia, Switzerland, the USA, and the United Kingdom. The retail supermarket has more than 6,700 stores across these countries, with 175,000 staff members on four continents.
The Aldi Nord has over 80,000 workforce in Belgium, Denmark, France, Germany, Luxembourg, the Netherlands, Poland, Portugal, and Spain.
Someone interested in investing in Aldi through the stock market should know that Aldi is still a privately-owned company.
By November 2022, Aldi has established over 22,000 stores and is succeeding its competitors. Australian investors are keen to invest in the successful supermarket chain.
Let’s learn how to profit from this successful business and be an investor.
ASX (Australian Securities Exchange) and ALDI.
Based in the capital of Sydney, Australia, ASX is the leading financial market. It is a market that provides investors with trading, technical and informative services, settlements, clearing, and post-trade services.
The ASX is the result of a merger that happened in 2006 between the Sydney Futures Exchange and the Australian Stock Exchange.
The ASX holds the fifth rank by the World Economic Forum in the capital market.
Investment in Aldi and the role of ASX
Aldi is the growing grocer in the retail industry that the public always prefers because of its affordable prices.
Aldi has 2,000 stores in 36 states and plans to expand with 2,500 more stores in new states by 2023. Their growth is growing exponentially, as they opened America’s first Aldi in Iowa in 1976.
The records say it is succeeding Amazon’s well-established Whole Foods Market and has secured the spot of the ninth-largest grocer in the US.
Aldi and it is stock ownership
The Albrecht family is the only one in the Aldi supermarket chain. The business is privately owned and owns the majority of the company’s capital.
Being the largest and the fastest-growing grocers, investors are constantly looking for opportunities to invest money in the supermarket enterprise. But unfortunately, investors cannot purchase shares in Aldi.
The successors of Karl and Theo are the owners of all the stocks and do not require any external financing to maintain their operations to grow their business rapidly.
The total stocks of Aldi are worth over 73.23 billion AUD.
Aldi and its stock symbol
Since Aldi is not a public corporation, it has no stock sticker or symbol of the company on any financial market like ASX.
Aldi is not on the list of any public stock exchange platform, neither in its founding country Germany nor the US.
To know accurate financial statistics and information about family-owned businesses like Aldi is challenging. Their operations are not public, but the success of Aldi is known to everyone in the market.
It is why investors are constantly searching for the non-existent stock symbol of Aldi across all financial platforms, including ASX.
The food industry successfully estimated the 2020 revenue of Aldi in the US, which was around 22.38 billion AUD.
Will Aldi ever become an IPO?
Aldi’s USP (Unique Selling Price) is one of a kind. They have successfully decoded the formula of sustaining consumers for decades through simple and functional stores, traditional marketing strategies, and 24*7 discounted prices.
Investors across the globe and in Australia have been patiently waiting for Aldi to become an IPO someday. Its perks and profitability are such as to attract anyone.
But with the current ownership system of Aldi, chances are bleak of turning it into an IPO. The Albrecht family is a proud owner and is managing the operations well. It is a closed setup that is working well for the business.
But if Aldi ever becomes an IPO, it would be a hot topic in the business, and the markets would crash, if for a day.
Aldi’s performance
Over the years, Aldi’s financial statements have remained a secret, or should we say a “family secret.” They keep their performance statistics and estimates private and release very little information to the public.
According to Deloitte Global Powers of Retailing, Aldi’s revenue growth was 5.6% in 2019, compared to Walmart’s stood at 1.6% for the same year.
This report tells a lot about the success of Aldi supermarkets and their counterparts having a hard time.
Final Word
Aldi Nord and Aldi Sud are family businesses and are still this way for the past few decades.
The company’s structure is such that no outsider can have any share in the capital, revenue, or profit of the retail industry’s leading grocers and supermarket chain.
In simple words, Aldi is not on any stock exchange market because it doesn’t have to. If the company is doing phenomenal business without outside intervention and financial support, why would it sell its stocks?
Here are 10 frequently asked questions about ALDI and its shares:
ALDI is a discount supermarket chain with over 10,000 stores in over 20 countries. It was founded in Germany in 1946 by brothers Karl and Theo Albrecht.
ALDI sells a wide range of products, including groceries, household items, and home and garden products. It is known for its private-label products, which are sold under the ALDI brand.
No, ALDI is a privately held company. It is not listed on a stock exchange and its shares are not available for public purchase.
ALDI is owned by two foundations: the Stiftungsurkunde foundation, which is controlled by the Albrecht family, and the Stiftung & Co. KG foundation, which is controlled by the Baum family.
ALDI makes money by selling products at low prices and operating efficiently. It keeps costs down by using private label products, minimizing packaging, and operating its own warehouses and distribution centers.
ALDI is very successful and has been consistently ranked as one of the world’s largest retailers. In 2021, it was ranked as the fifth largest retailer in the world by Forbes.
ALDI is headquartered in Essen, Germany.
Yes, ALDI has several subsidiaries, including ALDI Nord, ALDI SÜD, and Trader Joe’s.
Yes, ALDI has several philanthropic initiatives, including supporting local communities, promoting sustainable agriculture and environmentally-friendly practices, and contributing to various charitable organizations.
As a privately held company, ALDI’s shares are not available for public purchase. Therefore, it is not possible to invest in ALDI through the stock market.
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Reference Sites
- aldi.com.au
- medium.com