As a longtime retail analyst and an avid Aldi shopper myself, I‘m often asked by investors and grocery geeks alike: "Can I buy stock in Aldi?"
I can certainly understand the attraction. After all, the German discount grocery chain has been on a remarkable growth trajectory, steadily stealing market share from larger rivals with its unique low-overhead, high-quality approach. With over 11,000 stores globally and annual revenues in the $100 billion range, Aldi is a force to be reckoned with.
Unfortunately for investors hungry to take a bite out of Aldi‘s success, the answer is no, you cannot buy Aldi stock on any public stock exchange. And based on the company‘s history and business model, it‘s likely to stay that way. Let‘s dive into the reasons why.
Aldi‘s Unique Ownership Structure
The first thing to understand is that Aldi is not a single company, but two: Aldi Nord (North) and Aldi Sud (South). This split dates back to 1960, when brothers Karl and Theo Albrecht decided to divide their growing chain of Albrecht-Diskont (Aldi) stores after a dispute over selling cigarettes.
The brothers drew a line across a map, with Theo taking the stores in southern and western Germany, plus the rights to expand overseas (which is why Aldi Sud owns Aldi U.S. and Trader Joe‘s). Karl kept the northern and eastern German stores, which operate as a separate company.
After the deaths of Karl and Theo in 2014 and 2010 respectively, ownership of the Aldi companies passed to family members and foundations:
- Aldi Sud: Owned by Theo‘s side of the Albrecht family
- Aldi Nord: Controlled by the Markus Foundation and holding company Lukas Stiftung
The important thing to note is that both Aldi Nord and Aldi Sud remain privately held. The Albrecht family and related entities retain full control and have shown no indications of taking the company public.
By the Numbers: Inside Aldi‘s Incredible Growth
Make no mistake, Aldi may be privately owned but it‘s no mom-and-pop shop. The combined Aldi Nord and Sud operations make it one of the largest retailers on the planet, with a global store footprint and sales that put it in the same league as Kroger, Tesco and Carrefour.
Consider these key stats on Aldi‘s size and scope:
- 11,000+ total stores across 20 countries
- Over $100 billion in estimated annual revenue
- 2,000+ U.S. stores and growing (Aldi Sud)
- 500+ Trader Joe‘s stores (owned by Aldi Sud)
- 870 U.K. stores with plans for 1,200 by 2025 (Aldi Sud)
- 6,500 stores across Germany, Poland, Netherlands and more (Aldi Nord)
Aldi‘s no-frills stores carry a limited selection of around 1,400 mostly private-label products (compared to 40,000 at a typical supermarket). Aldi‘s reliance on exclusive brands and control over its supply chain allows it to undercut rivals on price.
This formula of small stores, minimal assortment and rock-bottom prices has enabled Aldi to thrive in the cut-throat grocery business. As a privately-held company, it has the freedom and flexibility to play by its own rules without the short-term pressures of the stock market.
The Aldi Way: Key Factors Driving Its Success
In my analysis, several factors make Aldi uniquely suited to remain a private company while still achieving incredible growth and profitability.
1. Low Cost Business Model
Most retailers obsess over increasing sales and margins, but Aldi‘s strategy is built around cutting costs to the bone so that it can pass on unbeatable prices to its customers. By eliminating nearly every expense — from shelving to credit card readers to grocery bags — Aldi stores are cheaper to build and operate.
Those cost savings flow through to Aldi‘s prices, which are around 20-30% cheaper than mainstream supermarkets on a basket of goods. In markets where Aldi competes, it forces larger chains to lower their own prices to avoid losing bargain-seeking shoppers.
2. Streamlined Shopping Experience
There are no frills inside an Aldi store — just bare-bones decor, limited selection and a rapid-fire checkout experience. Shoppers are expected to bring their own bags, pack their own groceries and return their carts (which require a 25 cent deposit) to the corral.
This minimalist, self-service approach keeps labor costs down and allows stores to be smaller (12,000 sq. ft on average vs. 40,000 for a typical supermarket). With less overhead, Aldi can offer ultra-low prices while still maintaining profitability.
3. Real Estate Ownership
Unlike many retailers that lease their stores, Aldi owns over 75% of its global real estate portfolio including stores, regional offices and distribution centers. Owning rather than renting gives Aldi more control over costs and frees up cash to reinvest in the business.
Aldi‘s strong balance sheet and sizable property holdings would be attractive to investors, but they also insulate the company from the ups and downs of the market. Aldi can take a long-term view rather than having to hit quarterly targets.
4. International Diversification
Aldi is a truly global retailer, with a presence in 20 countries that span Australia, Europe and the United States (including Aldi Sud-owned Trader Joe‘s). This geographic diversity provides a hedge against economic and competitive pressures in any single market.
The company employs different go-to-market strategies in each country, tailoring its approach to meet local tastes and preferences while still maintaining its core Aldi DNA. International expansion has been key to Aldi‘s growth story and should provide a long runway ahead.
The Future of Aldi: Will It Ever Go Public?
As Aldi continues its march across Europe, the U.S., Australia and beyond, the question remains: Will Aldi stock ever be available to public investors?
In my opinion, the chances are slim despite the obvious investor interest an Aldi IPO would draw. While nothing is impossible, Aldi‘s unique ownership structure and business model point toward a continued commitment to private ownership:
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Family control: The Albrechts are famously private and press-shy, especially after Theo‘s 1971 kidnapping. Staying private allows the family to avoid outside scrutiny and maintain full control.
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Freedom and flexibility: As a private company, Aldi can take bigger risks and employ unconventional tactics that might be a harder sell to public shareholders (like eliminating credit card machines to avoid processing fees).
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No need for capital: Aldi funds its own expansion through its healthy profits and has little need for outside financing. Going public could boost its cash reserves but would mean giving up equity and decision-making power.
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Long-term thinking: Aldi plays the long game rather than chasing short-term wins. It prefers steady, controlled growth on its own terms over the pressures of hitting quarterly earnings targets.
That said, Aldi will continue to evolve and adapt its model as the competitive landscape shifts. One area to watch is e-commerce, where Aldi has proceeded cautiously with online ordering for curbside pickup at select U.S. stores and a small presence on Instacart. How Aldi navigates the move to multi-channel grocery will be critical.
Aldi also faces stiff competition on its home turf from fellow German discounter Lidl, which is expanding rapidly. In the U.K., Tesco has launched its own discount chain called Jack‘s to fend off the Aldi/Lidl threat. And of course, Walmart and Amazon remain formidable foes globally.
As an Aldi fanatic, my hope is that the company stays true to its mission of delivering unbeatable value and quality through its streamlined approach. While we may never get the chance to own Aldi stock, we can still reap the benefits of its low prices and efficient shopping experience. That‘s an investment worth making.
