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In the [[United States]], due to the relatively low staffing of Aldi locations compared to other supermarket chains, Aldi has a reputation of starting employees out at significantly higher than [[Minimum wage in the United States|minimum wage]], unusual among American supermarkets.<ref>http://www.jobitorial.com/aldi-job-reviews-C2648</ref><ref>http://www.payscale.com/research/US/Employer=Aldi%2c_Inc./Hourly_Rate</ref>
In the [[United States]], due to the relatively low staffing of Aldi locations compared to other supermarket chains, Aldi has a reputation of starting employees out at significantly higher than [[Minimum wage in the United States|minimum wage]], unusual among American supermarkets.<ref>http://www.jobitorial.com/aldi-job-reviews-C2648</ref><ref>http://www.payscale.com/research/US/Employer=Aldi%2c_Inc./Hourly_Rate</ref>


Throughout 2013, Aldi's reputation in the UK has taken a significant hammering from sections of the motoring public due to their engagement of Parking Eye to manage the parking at many of their stores. The problem is that Parking Eye use ANPR (Automatic Number Plate Recognition) cameras to record the date and time of entry and exit to a car park. All this does is record time on site - it does not in any way "manage" the parking. Between them (PE and Aldi) they have also reduced the parking time allowance at many sites (often in contradiction to the planning consent for that site, and without planning permission). The net sum of these actions is that many genuine Aldi customers have received (and continue to receive) Parking Charge Notices (PCN) of £70. These PCNs are speculative invoices that are unenforceable in law ... the most that is allowed to be claimed is a genuine pre-estimate of loss - and since most of Aldi's car parks are free then the loss is zero. Every motorist who has appealed through the industry appeals process (POPLA - Parking On private Land Appeals) or at small claim court, and has raised the issue that these PCNs are not genuine pre-estimates of loss, has won their case. (Parking Eye are known to be litigious are to raise small claims court actions to recover non-paid PCNs - even though they have no authority to raise such actions in their own name).
Throughout 2013, Aldi's reputation in the UK has taken a significant hammering from sections of the motoring public due to their engagement of Parking Eye to manage the parking at many of their stores. The problem is that Parking Eye use ANPR (Automatic Number Plate Recognition) cameras to record the date and time of entry and exit to a car park. All this does is record time on site - it does not in any way "manage" the parking. Between them (PE and Aldi) they have also reduced the parking time allowance at many sites (often in contradiction to the planning consent for that site, and without planning permission). The net sum of these actions is that many genuine Aldi customers have received (and continue to receive) Parking Charge Notices (PCN) of up to £100 (typically £70, reduced to £40 if paid within 14 days). These PCNs are speculative invoices that are unenforceable in law ... the most that is allowed to be claimed is a genuine pre-estimate of loss - and since most of Aldi's car parks are free then the loss is zero. Every motorist who has appealed through the industry appeals process (POPLA - Parking On Private Land Appeals) or at small claim court, and has raised the issue that these PCNs are not genuine pre-estimates of loss, has won their case. (Parking Eye are known to be litigious are to raise small claims court actions to recover non-paid PCNs - even though they have no authority to raise such actions in their own name).


==Criticism==
==Criticism==

Revision as of 09:39, 23 December 2013

Aldi
Company typePrivate
IndustryRetail
Founded1913 (split into Aldi Nord and Aldi Süd in 1960)
FounderKarl Albrecht
Theo Albrecht
HeadquartersEssen, Germany (Aldi Nord)
Mülheim an der Ruhr, Germany (Aldi Süd)
Number of locations
9,235
Area served
Global
Key people
Matthew Barnes (CEO, UK Operations)[1]
ProductsDiscount store, Supermarket
RevenueIncrease €53 billion (2009)[2]
Websitealdi.com

ALDI Einkauf GmbH & Compagnie, oHG, doing business as Aldiⓘ (German pronunciation: [aldiː], short for Albrecht Discount), is a global discount supermarket chain based in Germany.

The chain is made of two separate groups, Aldi Nord (North, which operates as Aldi Markt), headquartered in Essen[3]—and ALDI Süd (South, which operates as ALDI Süd), headquartered in Mülheim an der Ruhr.[4] The two operate independently, each within specific areas.

The individual groups were originally owned and managed by brothers Karl Albrecht and Theo Albrecht. Karl Albrecht retains ownership of Aldi Süd, and with a personal wealth of €17.2 billion, is the richest man in Germany, while the co-owners of ALDI Nord, Berthold and Theo Albrecht Jr., follow close behind at €16 billion. Dieter Schwarz, owner of Lidl and Kaufland came in third, with a fortune of €11.5 billion.[5]

ALDI's German operations consist of Aldi Nord's 35 individual regional companies with about 2,500 stores in western, northern, and eastern Germany, and Aldi Süd's 31 regional companies with 1,600 stores in western and southern Germany.[citation needed]

Internationally, ALDI Nord operates in Denmark, France, the Benelux countries, the Iberian peninsula, and Poland, while ALDI Süd operates in Ireland, the United Kingdom, Hungary, Switzerland, Australia, Austria, and Slovenia (ALDI Süd operates as Hofer within the latter two countries mentioned). Both ALDI Nord and Aldi Süd also operate in the United States; Aldi Nord is owner of the Trader Joe's chain while Aldi Süd operates as Aldi.

According to a 2002 survey conducted 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.[6] One of ALDI's direct competitors, both nationally and internationally, is Lidl.

History

Albrecht storefront in Essen, West Germany, 1958
Aldi's original store in Essen, still in operation

The earliest roots of the company trace back to 1913, when the mother of Karl and Theo Albrecht opened a small store in a suburb of Essen. Their father was employed as a miner and later as a baker’s assistant. Karl Albrecht was born in 1920, Theo Albrecht in 1922. Theo Albrecht completed an apprenticeship in his mother’s store, while Karl Albrecht worked in a delicatessen. Karl Albrecht took over a food shop formerly run by F. W. Judt who already advertised that they were the "cheapest food source." Karl Albrecht served in the German Army during World War II. In 1946, the brothers took over their mother’s business and soon opened another retail outlet nearby. By 1950, the Albrecht brothers owned 13 stores in the Ruhr Valley.[citation needed]

The brothers' idea, which was new at the time, was to subtract the legal maximum rebate of 3% before sale. The market leaders at the time, which often were co-operatives, required their customers to collect rebate stamps, and to send them at regular intervals to reclaim their money. The Albrecht brothers also rigorously removed merchandise that did not sell from their shelves, cutting costs by neither advertising nor selling fresh produce, and keeping the size of their retail outlets small.[citation needed]

When the brothers split the company in 1960 over a dispute whether they should sell cigarettes at the till, they owned 300 shops with a cash flow of DM90 million yearly. In 1962, they introduced the name Aldi—short for Albrecht-Diskount. Aldi Nord and Aldi Süd have been financially and legally separate since 1966, although both divisions' names may appear (as if they were a single enterprise) with certain house brands or when negotiating with contractor companies.

ALDI expanded internationally in the 1970s and 1980s, experiencing a rapid expansion after German reunification and the fall of the Iron Curtain. The brothers retired as CEOs in 1993 and gave most of their wealth to foundations.[citation needed]

Business organization

Aldi stores worldwide.
Aldi stores in Europe. Aldi Nord in blue, Aldi Süd in orange.

Germany

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 east to just north of Fulda. The former East Germany is served by Aldi Nord, except for one Aldi Süd in Sonneberg, Thuringia, whose regional office is in Bavaria. 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 usually are away from urban areas, but always near an autobahn to facilitate transporting merchandise to individual stores. Aldi Nord 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 latter also is the coffee roaster of Aldi Nord.[citation needed]

Internationally

The ALDI group operates over 8,000 stores worldwide. A store opens roughly every week in Britain alone.[7]

ALDI Nord is responsible for its stores in Belgium, the Netherlands, Luxembourg, France, Spain, Denmark, and Portugal, and also operates the Trader Joe's supermarket chain in the United States. Aldi Süd's responsibilities are in the USA (operating under the Aldi name), Austria and Slovenia (as Hofer), the United Kingdom, Ireland, Australia, and Switzerland. Aldi Süd's first Switzerland store opened in 2005, while it has operated in Hungary and Poland since 2007. Aldi Süd had invested an estimated €800m ($1bn; £670m) in Greece from November 2008 until pulling out on 31 December 2010.[8]

Whilst ALDI Nord has renamed its Dutch and Belgian subsidiaries Combi and Lansa to the Aldi Markt/Aldi Marché brand, Aldi Süd tries to maintain a regional appearance, branding its stores Aldi Süd in Germany, Aldi Suisse in Switzerland, and Hofer in Austria and Slovenia.[citation needed]

In the United Kingdom, Aldi opened its 500th store in October 2013 and now has a market share of 3.6%.[9] Aldi has opened stores in affluent locations including Knutsford and Bury St Edmunds Aldi has been aggressively recruiting management staff at top UK universities.[10]

In the USA, as with most American supermarkets, Aldi accepts public assistance debit-style cards as payment.

Distribution of Aldi within Germany (the so-called Aldi-equator)

In much of Australia, Aldi filled a void in the discount supermarket business that arose when the discount grocery chain Franklins, in 2002, became limited to New South Wales. On 17 December 2008, Aldi opened its 200th Australian store; its supermarkets are in Victoria, New South Wales, the Australian Capital Territory, and Queensland.[11]

Geographic distribution

Opening Day at Glenfield Park, New South Wales
Aldi in Gárdony, Hungary
Country Name Aldi group Since Outlets
 Germany Aldi Nord 1946 2,400
Aldi Süd 1946 1,790[12]
 Australia Aldi Süd 2001 311[13]
 Austria Hofer Süd 1968 430[12]
 Belgium Aldi Nord 1973 380
 Denmark Aldi Nord 1977 244
 France Aldi Nord 1988 680
 Hungary Aldi Süd 2008 85 [14]
 Ireland Aldi Süd 1998 105
 Luxembourg Aldi Nord 1990 12
 Netherlands Aldi Nord 1975 406
 Poland Aldi Nord 2008 72
 Portugal Aldi Nord 2006 36
 Slovenia Hofer Süd 2005 71
 Spain Aldi Nord 2002 227 [15]
 Switzerland Aldi Suisse Süd 2005 130[12]
 United Kingdom Aldi Süd 1989 512[16][17]
 United States Aldi Süd 1976 1,200[18]
Trader Joe's Nord 1979 399
total number of Aldi Nord stores 4,805
total number of Aldi Süd stores 4,430
combined total of Aldi stores 9,235

Business practices

Some Aldi practices are common in German supermarkets but largely unique to Aldi in other countries.[citation needed] These include the system of metal gates and turnstiles forcing customers to exit through the checkout, and charging customers for shopping bags. Until 2004, Aldi stores accepted only cash (since then, German stores have accepted domestic Girocard debit cards). Debit cards also are accepted in the USA, the UK, Austria, Belgium, Denmark, France, Portugal, Spain, the Netherlands, Switzerland, Ireland, Australia, Slovenia, and Hungary. Electronic-benefit transfer cards are also accepted in the USA.[citation needed]

Aldi generally does not accept credit cards, though Aldi Australia accepts MasterCard and Visa for a 0.5% surcharge and Aldi Ireland accepts Visa/MasterCard with no surcharge. In the USA, Aldi accepts Discover Card at some locations. In the United Kingdom Aldi accepts credit cards in Scotland only.[19]

Another practice at Aldi stores in Europe, Australia and the USA, is requiring a coin, or an Aldi-issued reusable token, to use a shopping trolley. When the coin or token is inserted, the trolley is unlocked from the other trolleys. When the cart is returned, the customer is refunded their coin, effectively costing the customer only the time to return the cart. This is a common practice in some European supermarkets. By contrast, many U.S. stores often have employees return carts left in parking areas.[citation needed]

In-store layout

Aldi Nord interior
Aldi Australia shelving

Aldi specialises in staple items, such as food, beverages, toilet paper, sanitary articles, and other inexpensive household items. Many of its products are own brands, with the number of other brands usually limited to a maximum of two for a given item. This increases sales for each article, and lets Aldi shops be smaller than stores with more brand choice. This practice let Aldi avoid price tags, even before the introduction of bar code scanners (see below).

Branded products carried include HARIBO in Germany, Marmite and Branston Pickle in the UK; and Vegemite and Milo in Australia. In the USA, major brand-name products, such as Oscar Mayer bacon, sometimes are offered as a 'special purchase': name-brand items that Aldi has received at a special price from the vendor and can offer for a reduced price. Unlike most shops, Aldi does not accept manufacturers' coupons, although some USA stores successfully experimented with store coupons (e.g. $10 off a $25 purchase).

In addition to its standard assortment, Aldi has weekly special offers, some of them on more expensive products such as electronics, tools, appliances, or computers, usually from Medion. Discount items can include clothing, toys, flowers, and gifts. Specials have strict limits on quantities, and are for one week. Aldi's early computer offers in Germany (such as a Commodore 64 pack in 1987) resulted in those products selling out in a few hours.[20]

Aldi is the largest wine retailer in Germany[21] Some Australian stores now sell alcoholic beverages. Some USA stores also sell alcoholic beverages (mainly beer and wine) where permitted by local laws.

Aldi mainly sells exclusively produced, custom-branded products (often identical to and produced by major brands[22]) with brand names including Grandessa and Fit & Active. USA, Australian, and UK Aldi stores also feature bargain-priced, gourmet foods imported from Germany.[citation needed]

Aldi's gift certificates must be paid for in cash.[citation needed]

Advertising policy

Aldi has a policy in Germany of not advertising, apart from a weekly newsletter of special prices called "Aldi informs" that is distributed in stores and by direct mail, and often printed in local newspapers. It claims this is a cost saving that can be passed on to consumers. In Germany, Aldi has never used an external advertising agency.[6]

In the USA it advertises in newspapers and on television as well as print ads distributed in stores and via the Internet.

In the UK, print and television ads have appeared since mid-2005.

Reputation

Aldi in Hjørring, Denmark

Originally Aldi shops were often ridiculed as being cheap shops selling low-quality goods, whose customers could not afford to shop elsewhere.[23] However, being held in low esteem by many did not seem to dent Aldi's profits. Gradually, German consumers discovered that the poor reputation of Aldi's products was not deserved.[24]

In the UK, Aldi has won the prestigious Supermarket of the Year by Which? for two years in a row (2012/13).,[25] and in 2013, Aldi won The Grocer Grocer of the Year Award.[26]

In the United States, due to the relatively low staffing of Aldi locations compared to other supermarket chains, Aldi has a reputation of starting employees out at significantly higher than minimum wage, unusual among American supermarkets.[27][28]

Throughout 2013, Aldi's reputation in the UK has taken a significant hammering from sections of the motoring public due to their engagement of Parking Eye to manage the parking at many of their stores. The problem is that Parking Eye use ANPR (Automatic Number Plate Recognition) cameras to record the date and time of entry and exit to a car park. All this does is record time on site - it does not in any way "manage" the parking. Between them (PE and Aldi) they have also reduced the parking time allowance at many sites (often in contradiction to the planning consent for that site, and without planning permission). The net sum of these actions is that many genuine Aldi customers have received (and continue to receive) Parking Charge Notices (PCN) of up to £100 (typically £70, reduced to £40 if paid within 14 days). These PCNs are speculative invoices that are unenforceable in law ... the most that is allowed to be claimed is a genuine pre-estimate of loss - and since most of Aldi's car parks are free then the loss is zero. Every motorist who has appealed through the industry appeals process (POPLA - Parking On Private Land Appeals) or at small claim court, and has raised the issue that these PCNs are not genuine pre-estimates of loss, has won their case. (Parking Eye are known to be litigious are to raise small claims court actions to recover non-paid PCNs - even though they have no authority to raise such actions in their own name).

Criticism

In 2013 Aldi was critised for allowing its 3rd party parking operator parking eye, to sue its own customers who had spent to much time shopping in their stores. On facebook they wouldnt address the situation, however people thought back with the help of http://forums.moneysavingexpert.com/showthread.php?t=4660007&page=64 money saving expert. Also people who have received parking invoices from Parking can easily beat Parking eye @ Popla. Aldi has stated in various phone calls that it does not care if people receive tickets from Parking eye

In April 2000, Aldi UK paid damages to a shop manager who was fired for being HIV-positive. Aldi reached an out-of-court settlement with Mark Hedley (who had been manager of the Aldi supermarket in Seaham, County Durham) shortly before an employment tribunal hearing. Hedley complained of discrimination after he was asked to leave because bosses said staff were uncomfortable around him. It is thought the damages paid to Hedley were "six figures".[29]

In 2004, German Aldi stores sold garden furniture made of Indonesian Meranti wood. Because it was not able to show that it was sourced legally (70% of Indonesian timber is illegally logged), environmental organisations pressured Aldi to stop selling the furniture.[30] Within days Aldi announced that all of the timber used in its products would bear the FSC certificate, which promotes sustainable forestry.[31]

In 2008 Aldi UK demolished an historic coaching inn in Burpham having previously agreed not to until planning consent had been received.[32]

In 2010, over 200 Aldi store managers in the USA filed charges over unfair labour practices, claiming they were illegally classified as exempt from overtime pay, receiving a fixed salary regardless of the actual number of hours worked. The plaintiffs claimed that instead of managing, most of the time was spent stocking shelves, cleaning spills, and serving customers. Aldi store managers are not responsible for hiring, firing, or promoting employees.[33]

In September 2011, Australian community groups in Quakers Hill, New South Wales launched objections over Aldi's plans of selling discount alcohol at several stores.[34]

In 2013 Aldi UK was criticised for spying on its own staff,[35] in the same year it was also caught up in the horse meat contamination scandal along with Tesco and others.[36] On February 8, 2013, the store group admitted that some of its frozen lasagne and Spaghetti bolognese products contained 100% horse meat rather than the advertised beef

Aldi Talk

Main article: Aldi Talk

Aldi has a mobile virtual network operator in Germany, Belgium, and the Netherlands, called Aldi Talk. Aldi also operates a similar network in Australia using Telstra's 3G network, called ALDImobile.[37]

References

  1. ^ http://www.thegrocer.co.uk/companies/joint-chiefs-take-over-at-aldi-uk/207589.article
  2. ^ "Obituary: Theo Albrecht."
  3. ^ "Impressum." ALDI Nord. Retrieved on February 14, 2011. "ALDI Einkauf GmbH & Co. oHG Eckenbergstraße 16 45307 Essen."
  4. ^ "Impressum." Aldi Süd. Retrieved on February 14, 2011. "Burgstraße 37 45476 Mülheim an der Ruhr Amtsgericht Duisburg HRA 8577."
  5. ^ Aldi dynasty continue to lead German rich list.Published: 10 Oct 11 15:32 CET
  6. ^ a b Steinhoff, Jürgen (2002-12-16). "Hinter den Kulissen des Discounters". Stern (in German). Retrieved 2010-08-04. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  7. ^ Wallop, Harry (30 Jun 2008). "Aldi pledges to open a new store every week". London: The Telegraph. Retrieved 18 February 2012.
  8. ^ "Aldi quits Greece" (in German). www.german-retail-blog.com. July 23, 2010. Retrieved 18 February 2012.
  9. ^ http://www.thegrocer.co.uk/companies/supermarkets/aldi-lidl-and-waitrose-seize-share-as-market-polarises/344354.article
  10. ^ http://www.bbc.co.uk/news/10521559
  11. ^ Aldi opens five new Queensland stores > FOODweek Online > Main Features Page [dead link‍]
  12. ^ a b c "Aldi Süd Facts and Figures". Archived from the original on 22 December 2008. Retrieved 2008-12-06. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  13. ^ http://www.theaustralian.com.au/business/companies/aldi-goes-online-to-brew-a-new-battle/story-fn91v9q3-1226667829517
  14. ^ "Aldi stores in Hungary".[failed verification]
  15. ^ "Los Supermercados Aldi más próximos". Retrieved 2010-12-30.[failed verification]
  16. ^ http://www.telegraph.co.uk/foodanddrink/10412195/How-Aldi-won-the-class-war-and-became-the-fastest-growing-supermarket-in-Britain.html
  17. ^ https://twitter.com/aldiUK
  18. ^ "Discount grocer opens North Bergen store". The Hudson Reporter. 26 March 2013.
  19. ^ "Aldi: Useful Information". Retrieved 2013-11-27.
  20. ^ "HCM: The Home Computer Museum". Retrieved 2007-02-09.
  21. ^ "GERMANY: Aldi is the biggest wine retailer in Germany". Progressive Newsletter 79. Progressive Group International Newsletter. 20–26 March 2006. Retrieved 18 February 2012.;
  22. ^ A list of no-name brands and the major brand companies behind them for Germany. Aldi relies on re-labeled major brand products.
  23. ^ Waltraud Schwab (2010-06-19). "Arme Discounterkunden: Kasse dank Masse" (in German). Die Tageszeitung. Retrieved 18 February 2012.
  24. ^ "Aldi Stores as Culture". www.h2g2.com. 4 August 2000. Retrieved 18 February 2012.
  25. ^ "Aldi wins Supermarket of the Year at Which? awards for second year in a row".
  26. ^ "Aldi scoops Grocer of the Year Award at Grocer Golds".
  27. ^ http://www.jobitorial.com/aldi-job-reviews-C2648
  28. ^ http://www.payscale.com/research/US/Employer=Aldi%2c_Inc./Hourly_Rate
  29. ^ "Damages for sacked HIV manager". BBC News. 2000-04-10. Retrieved 2007-01-14.
  30. ^ Template:De icon "Umwelt:Aldi auf dem Holzweg". Spiegel Online. 2004-05-20. Retrieved 2007-02-04. [dead link‍]
  31. ^ Template:De icon "Protestaktionen bringen Discounter zum Umdenken". 2004-05-26. Retrieved 2007-02-04. [dead link‍]
  32. ^ Template:PDF,
    Roger Marjoribanks, Hon. Remembrancer, Borough of Guildford (Accessed 03 May 2009)
  33. ^ Cho, Janet (January 20, 2010). "Aldi grocery store employees accuse chain of violating federal wage laws". http://www.cleveland.com. Retrieved 18 February 2012. {{cite web}}: External link in |publisher= (help)
  34. ^ "Aldi to sell alcohol".
  35. ^ http://www.thelocal.de/society/20130107-47165.html#.UOqJ2HfoD4Y
  36. ^ "Horsemeat found in beefburgers on sale in UK and Ireland". Retrieved January 17, 2013.
  37. ^ Sharma, Krishan (5 March 2013). "List of Aldi and Kogan's budget phone plans". BIT. Haymarket Media. Retrieved 9 March 2013.
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