Aldi is a discount grocery store chain with stores all over the United States. If you are not familiar with it, you should be! Not only are their prices super low, but they also have a vast selection of organic and gluten-free items.
But, Can You Buy Aldi Shares? Here is everything you need to know about their IPO; that’s an initial public offering, in case you didn’t know.
Contents
- The History Of Aldi
- How Does Aldi’s Keep Its Prices Low?
- Can You Buy Aldi Shares?
- Why Is Aldi Not On The Stock Market?
- What Are The Aldi Nord And Aldi Sud Family?
- Are There Other Grocery Stores On The Stock Exchange?
- The Future Of Aldi
- Retail Opportunities Just For You!
- Can You Buy Aldi Shares? – Final Thoughts?
The History Of Aldi
The supermarket was founded in 1946 by two brothers, Karl and Theo Albrecht. (Theo later changed his last name to Albrecht-Schmidt, but we will just refer to him as Theo.)
The Albrecht brothers took over their mother’s grocery store in Essen, Germany, after she passed away. The brothers ran the store very differently than their competitors. For example, they only sold items that were in high demand, and they had a no-frills approach to selling groceries. This meant that their prices were lower than other stores, and they quickly became immensely popular.
Expanding into a chain…
Theo eventually bought out his brother’s share of the company and expanded the supermarket into a chain of stores. By the 1960s, there were Aldi stores all over Germany. In 1979, Theo opened the first store in the United States.
What about Aldi today?
Aldi is now one of the largest grocery store chains in the world. They have over 10,000 stores in over 20 countries. In the United States, they are the third-largest grocery store chain behind Walmart and Kroger.
How Does Aldi’s Keep Its Prices Low?
The supermarket is known for its low prices, and they keep them that way by doing a few things:
- They have a very limited selection of items. They only carry about 1,500 items compared to a typical grocery store which carries about 50,000 items.
- Many of the brand products they do have are overstock. They buy products from manufacturers that have too much inventory and are willing to sell them at a discount.
- Avoiding brand names. You will not find any Coca-Cola or Pepsi products at Aldi. Instead, they sell their own private label products, which are usually just as good as the name brands but are much cheaper.
- They have a no-frills approach. They take a lot less time refilling shelves, and they have considerably basic store décor. This saves them money which they can pass on to their customers in the form of lower prices.
- Advertising less. They do not spend a lot of money on television or print ads. Instead, they rely on word-of-mouth to attract customers.
Unfortunately, Aldi is a privately owned company, so you cannot buy their shares. This means that they are not traded on the stock market. However, this could change in the future. Theo died in 2010, and his heirs may choose to sell some of their stocks.
Why Is Aldi Not On The Stock Market?
The current structure of Aldi’s ownership makes it unlikely that the company will ever be publicly traded. Theo’s heirs own both branches of the store (Aldi Nord and Aldi Sud) through a series of holding companies.
So really, it is not on the stock market because it is doing simply fine without it! They are a successful, privately-owned company. And to be honest, I am not sure they would want to be publicly traded anyway. After all, part of the store’s success is due to its straightforward approach to business.
Being publicly traded would likely mean more regulation and less flexibility for the company.
What Are The Aldi Nord And Aldi Sud Family?
The Aldi Nord and Aldi Sud family are the two branches of the German discount supermarket chain. They are owned by different holding companies, but both are controlled by the heirs of founder Theo Albrecht. The split happened in 1966, although you probably would not be able to tell they are two different businesses.
Aldi Nord operates across most of Germany, Denmark, France, Spain, and more across 2500 stores. Aldi Sud has control over 1900 stores across West and South Germany, the UK, China, Italy, Australia, and more. In the US, the latter is known as Aldi and the former as Trader Joe’s.
Same same but different!
The two branches are similar in many ways, but there are some differences. For example, Aldi Nord stores typically have a wider selection of products. Additionally, international stores accept coupons, while European stores do not.
While the Albrecht family controls both branches, they are technically separate companies. This means that you cannot buy shares in either company.
Is Trader Joe’s owned by Aldi?
No, Trader Joe’s is not owned by Aldi. Trader Joe’s is owned by their parent company, Albrecht Discounts (ADI). However, the two companies are run independently from each other. Unfortunately, as Trader Joe’s is also privately owned, it is not possible to invest in this company either.
Are Aldi’s and Lidl’s owned by brothers?
When you think of Aldi’s, usually Lidl’s closely follows. Lidl is a German supermarket chain that is similar to Aldi. Both companies are owned by brothers. However, the brothers who own Aldi are not the same brothers who own Lidl (Klaus, Dieter, and Thomas Schwarz).
Just like our favorite supermarket, Lidl is also a privately owned company, so it is not possible to invest in their stocks.
Are There Other Grocery Stores On The Stock Exchange?
Yes, there are other grocery stores available on the stock exchange. Some of the largest grocery store chains in the United States that are publicly traded include Kroger (KR), Walmart (WMT), and Costco (COST).
Investing in Grocery Stores
If you are interested in investing in grocery stores, you may want to consider financing one of the publicly traded grocery store chains I mentioned earlier. However, keep in mind that grocery store stocks can be volatile.
The industry is subject to many different factors, such as changes in consumer spending, competition, and the cost of food. Additionally, natural disasters and changing political situations can impact imported foods which can, in turn, negatively affect the stores.
On a positive note, however, we will always need somewhere to buy our groceries, so buying stocks in a grocery store is a relatively safe bet. But make sure to do your research before investing in any stocks!
The Future Of Aldi
The future of the supermarket is looking pretty bright! They have plans to open more stores in the United States, and they are expanding their online presence. Additionally, they are investing in innovative technologies such as self-checkout and home delivery. So, it seems that Aldi is here to stay!
Retail Opportunities Just For You!
Well, if you can’t afford shares just yet, you can always work at Aldi and save! Let’s help you get started with my Aldi Application and the most common Aldi Interview Questions to make sure you’re fully prepared, as well as How Old Do You Have To Be To Work At Aldi if you’re still in school.
Although, before applying, please check up on Does Aldi Run Background Checks if you have a criminal record.
Alternatively, we have countless opportunities in retail, such as our Price Chopper Application, our City Market Application, our Whole Foods Application, as well as our Lucky Supermarkets Application, our United Supermarkets Application, or perhaps even our Shaws Application, our Giant Food Stores Application, and finally our Tops Application, in 2023.
So, is it possible to buy Aldi Shares? Well, no, Aldi is a privately owned company, so you can’t buy their shares.
However, they may be publicly traded in the future. But, for now, you will have to stick to shopping at their stores if you want to support the company!
All the very best with your future investments!