Aldi North and South: The Biggest Change in Discount History?
Aldi-Merger: Potential Combination of Albrecht's Discount Retailers on the Horizon? - Aldi-Reunion Rumors: Possible Merger of Albrecht Discount Stores?
By Niels Kruse* ~3 Min Read
The Aldi empire has been missing an Albrecht at the helm for almost two years. Theo junior, the last operationally active member of the founding family, stepped down from the supervisory board in October 2023. Months prior, Aldi North was already showing signs of change, modernizing to compete in the growing discount market. But now, a groundbreaking union may be on the horizon: a merger with sister company Aldi South.
Merger on the Horizon: Aldi North and South United?
According to sources from "Wirtschaftswoche," the owner families of the two discounters are secretly discussing a merger. Insiders from the families provide the information. The Heister family, who control Aldi South via foundations, and two Albrecht family branches, who own Aldi North through foundations, are believed to be involved in these talks.
The exact nature of the proposed merger is still being determined. Various scenarios are rumored, such as merging under the umbrella of a joint holding company, with shares equally distributed among the foundations of the different family branches.
Initially, the families reportedly aimed to accomplish a "reunion" of the two Aldis by the end of the year. However, time is running short, and it is now considered unlikely that this goal will be achieved by year-end, according to family sources. Neither Aldi North nor Aldi South has publicly commented on the plans, and inquiries remain unanswered, according to "Wirtschaftswoche."
Retail experts have long expected the two Aldis to merge or at least consider it. Eliminating duplicate structures could save enormous costs. Combining software and IT is now planned as one of the first steps.
The Albrecht Family Squabble
So far, a merger has been thwarted by a dispute between two Albrecht branches from the north. However, the Heisters from the south have made peace a condition for the merger, as reported by "Wirtschaftswoche."
The dispute between the two northern branches stemmed from control and voting rights in the foundations through which the two families own Aldi North. The disagreement between the branches escalated, requiring a court resolution. Since then, at least the power dynamics in the foundations have been clarified, it is said.
Aldi's owner families are notorious for their ironclad secrecy. Internal matters rarely leak out. The fact that potential merger talks have become public is indeed a sensation. Yet, the economic situation of Aldi North is well known, at least compared to competition from the south and Lidl, the largest discount store in the country. In France, the company is in the red, and it has even withdrawn from Denmark.
Aldi Ranking Among the Big Five
Aldi North and South, with a combined 4,200 stores and around 11 percent market share, are currently the fourth-largest food chain in Germany, with the South generating nearly a quarter more sales than the North. Lidl ranks third with 3,200 stores and 18 percent market share. In front are Edeka (11,000 stores, 26 percent market share) and Rewe with 3,700 stores and 21 percent market share.
Merging Aldi's strength could have far-reaching implications for the discount market. However, the discussions are still in their early stages, and there has been no official confirmation from either Aldi North or South regarding the merger talks.
Sources: "Wirtschaftswoche," "Frankfurter Allgemeine Sonntagszeitung," "Lebensmittelpraxis," "Business Insider."
- Aldi
- Discount Supermarket
- Theo Albrecht
- Reunification
- Despite the ongoing talks, the Commission has not yet adopted a decision regarding the potential merger of Aldi North and South, which could have significant implications for the discount, finance, retail, and business sectors.
- If the reunion of Aldi North and South proceeds, it could revolutionize the discount industry, potentially leading to cost savings, improved software and IT systems, and a stronger challenge to market leaders in the finance, retail, and business sectors.
