Blog: Aldi finds shelf space for brands

Catherine Sleep | 13 October 2005

German hard discounter Aldi has begun selling a small number of branded products in its domestic market, marking a shift from its traditional focus on cheaper private-label brands. Rival discounter Lidl has already made steps in this direction, but Aldi has traditionally been the ‘harder’ hard discounter. Although still only half the size of Aldi, Lidl performed much more convincingly in 2004 and it seems Aldi has decided to take a leaf out of its book.

Hard discounters account for 40% of the German grocery market, giving them huge negotiating power, which they will doubtless use to good effect. If sales go well, this will provide a massive new sales channel for manufacturers of high profile branded products.

Another interesting fact about Aldi: the brothers who founded the company, Karl and Theo Albrecht (ALbrecht DIscount – geddit?) are far and away the richest people in Germany. They are worth more than fifteen billion euros apiece. The senior brother, 85-year-old Karl, saw his fortune grow by an estimated €400m last year, while kid brother Theo (83) perhaps rested on his laurels as his bank balance remained steady at €15.1bn.

Who says that piling it high and selling it cheap will never make anyone rich?

Aldi starts selling branded products


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