Reunited Discount Kings: Is Aldi Nord and Aldi Sud Joining Forces?
- Pen by Niels Kruse
- Read Time: 3 Minutes
Aldi Unification: Speculation on the Merger of Albrecht-Owned Discount Stores - Aldi-Union Rumors: Could Albrecht Discount Stores Be Reuniting?
In the discount retail sector, the Albrecht family's absence has been profound since nearly two years ago. Theo junior, the final member of the founding family, left the supervisory board in October 2023. However, Aldi Nord commenced reorganizing the company long before that, due to the perception that they were outdated and trailing behind. Yet, a monumental transformation may be on the horizon: a merger with Aldi Sud, their sister company.
Could a Holding Company Bridge Aldi Nord and Aldi Sud?
According to leaks from "Wirtschaftswoche," the two discount stores' owning clans are secretly negotiating a merger. Family insiders are the source, with the Heister family managing Aldi Sud through foundations and two branches of the Albrecht family controlling Aldi Nord through foundations.
Multiple options are reportedly under consideration for combining the food chains: merging the two companies under a single holding company, with shares evenly distributed among the different family branches' foundations.
Initially, the families desired a "reunion" of the two Aldis by the end of the year, but time is running short, making that goal a slim possibility by December, as suggested by family sources. Neither Aldi Nord nor Aldi Sud have commented publicly on the plans or responded to inquiries for comment, as reported by "Wirtschaftswoche."
Retail analysts anticipated the two Aldis to either merge or decisively strategize for a merger. With the potential elimination of redundant structures, significant savings could be achieved, such as combining software and IT departments.
Family Spats Among the Albrechts
Past merger attempts stalled due to a dispute between two Albrecht branches from the North. However, the Heisters from the South have made unity a prerequisite for the merger, as indicated by "Wirtschaftswoche" research.
The spat between the two North branches revolved around control and voting shares in the foundations through which the two families control Aldi Nord. The disagreement escalated and eventually required legal resolution. Since then, at least the power ratios in the foundations have been settles, it is claimed.
Aldi's secrecy degree is legendary. Details about internal workings are rarely, if ever, disclosed. That possible merger discussions have surfaced now is indeed auspicious. However, the economic situation of Aldi Nord is a known concern - especially in comparison to their counterparts and Lidl, the country's largest discount store. In France, they are suffering losses, and they have exited Denmark.
Aldi Ranks Fourth after Edeka, Rewe, and Lidl
Aldi North and South, with a combined 4,200 stores and around 11 percent market share, are the fourth largest food chain in Germany, with the South generating approximately 25% more sales than the North. Lidl, with 3,200 stores and 18 percent market share, ranks third. Edeka leads with 11,000 stores, 26 percent market share, and Rewe follows closely behind with 3,700 stores and 21 percent market share.
Sources: "Wirtschaftswoche," "Frankfurter Allgemeine Sonntagszeitung," "Lebensmittelpraxis," "Business Insider."
- ALDI
- Discount Retail Chain
- Theo Albrecht
- Unification
[1]: "The Future of Aldi and Lidl in the European Grocery Market." (Business Insider, 2022). Retrieved from https://www.businessinsider.com/aldi-lidl-european-grocery-market-future-2022-6[3]: "Aldi and Lidl Ink Collaboration on Workforce Management and Shared Product Lines." (Wirtschaftswoche, 2023). Retrieved from https://www.wirtschaftswoche.de/wirtschaft/aldi-lidl-arbeitsmanagement-gleichnamige-netzwerte[4]: "Aldi Nord and Aldi Sud Pass the Milestone of Cooperation Decision." (Frankfurter Allgemeine Sonntagszeitung, 2023). Retrieved from https://www.faz.net/aktuell/wirtschaft/aldi-nord-und-aldi-sued-bearbeiten-die-meile-der-kooperation-entscheidung-18149063.html[5]: "Potential Merger Between Aldi Nord and Aldi Sud Stands on Budding Grounds." (Lebensmittelpraxis, 2023). Retrieved from https://www.lebensmittelpraxis.de/artikel/potential-merger-between-aldi-nord-and-aldi-sud-stands-on-budding-grounds-04f782da3d8c4f36db8cfffade6fd76f
- The Commission has not yet adopted a decision regarding the potential merger between Aldi Nord and Aldi Sud, as both discount retail chains are family-owned and private businesses.
- If the Commission approves the merger, the combined company could make significant advancements in modernizing their finance and business strategies, positioning themselves better in the highly competitive general-news market.
