Aldi Foods - Grocery.com Aldi Foods Aldi , short for Albrecht Discount, is an international discount supermarket chain based in Germany. History In 1946, brothers Karl and Theo Albrecht took over a small store in a suburb of Essen, Germany, their mother had opened in 1913. Soon after they opened another retail outlet nearby and by 1950 owned 13 stores in the Ruhr Valley. A priority for the Albrecht brothers was cost cutting: by the end of World War II, they had nearly perfected the philosophy of the “limited assortment” grocery store. The brothers did not advertise their business, did not sell fresh produce and kept their outlets small. The brothers split the company in 1960s over a dispute about whether to sell cigarettes. By then, they had operated 300 shops and earned some DM 90 million per year. Two years after the split, which broke the chain into two legally and financially separate entities, they introduced the name Aldi.

From then on, the Albrecht brothers’ business operated as Aldi Nord (Aldi North), which was known as Aldi Market, and Aldi Sud (Aldi South). The companies continued to expand, Aldi Nord growing into 35 independent regional branches with about 2,500 stores, and Aldi Sud growing into 31 companies with 1,600 stores. In the 1970s and 80s, after the German reunification and the fall of Iron Curtain, Aldi expanded internationally, eventually operating some 8,210 individual stores worldwide. Both Aldi Nord and Aldi Sud operate markets mainly in Europe, but Aldi Sud also operates in the United States and Australia, among other locations.

In 1976, Aldi opened its first American store in Southeastern Iowa, continuing to use the Albrect philosophy: “When you buy a can of peas at Aldi, you’re paying almost entirely for the can of peas.” Aldi claims it saves customers money by leaving out the “army of stackers,” “piped-in music,” fancy display” and “gimmicks and games.” In order to offer less expensive items, Aldi manufactures its products without the various factors — packaging, transportation, stocking, staff turnover and others — that tack pennies on to the final price consumers pay. To further reduce cost to the consumer, Aldi encourages customers to bring their own shopping bags, but also offers grocery bags for sale. To further reduce costs, Aldi’s shopping carts are available to rent for a quarter (deposit returned with the cart), thereby eliminating the need to pay an employee to recover carts. The store telephone numbers are unlisted to avoid needing an employee to answer the phone. Aldi’s labor costs are about 4 percent of store sales. Aldi stores sell their own brand label foods, beverages and inexpensive household items, including electronics and appliances.

It limits the number of outside brands it sells, usually to one or two per product, in order to increase sales and keep Aldi stores smaller than supermarkets that offer more diversity for a similar range of products. Aldi does not accept manufacturers’ coupons, although some stores in the U.S. experiment with a store coupon successfully. Like some no frills, warehouse-style stores, Aldi does not decorate its aisles or fill all of its shelves. It offers pallets of its products, boxed in cardboard, which it places alongside aisles for customers to pick from. The company maintained its policy of not advertising in Germany, with the exception of a weekly newsletter of special prices, because, it claims, the cost-saving measure can be passed down to consumers. In the U.S., Aldi advertises regularly through newspaper inserts and television commercials. Aldi is known to do its advertising in-house, so as not to spend money on an external advertising agency. Although it had a reputation for being cheap and selling low-quality products, Aldi’s success hasn’t wavered. It continues to expand in Australia, England and the United States.

Stats Number of Stores: 1,400 in the U.S., 8,500 worldwide Number of Employees: 11,000 Annual Revenue: $68,700 million (U.S.) Geography: Germany, Australia, Austria, Belgium, Denmark, France, Greece, Hungary, Ireland, Luxembourg, Netherlands, Poland, Portugal, Slovenia, Spain, Switzerland, United Kingdom, United States (36 states from Kansas to the East Coast) Demography: Bargain hunters and do-it-yourself shoppers Subsidiaries: Combi, Hofer Aldi heir Berthold Albrecht dies leaving £11 billion fortune but family wait for a month to announce the death | Daily Mail Online comments One of Germany's richest men - heir to an estimated £11 billion fortune - died last month but his secretive family only leaked details of his passing today. Berthold Albrecht was the son of Aldi's co-founder - the discount supermarket chain that holds the majority share of the grocery market in Germany and much of Europe.

Albrecht was 58 when he died but details of the death are scant after his family delayed the announcement for weeks following his funeral in the family's home city of Essen. Rare sighting: Berthold Albrecht seen driving his vintage Mercedes earlier this year Mystery: The Albrecht family waited weeks to announce the death of the Aldi supermarket heir, Berthold Albrecht. His death was announced in newspaper obituaries, above The ultra-secretive family broke the news of his death in full-page obituaries in newspapers, describing him as 'much loved'. But the cause of death was not revealed in the notices, which ended with the words 'In eternal love and with grateful thanks'. His wife said in the notice: 'Berthold Albrecht was a very loving and extremely generous human being, an exemplary husband and father. RELATED ARTICLES Share It also described him as a 'fighter, never losing hope right to the end'. Father-of-five Berthold was the son of Theo Albrecht Snr, a devout Catholic who was one of Germany’s richest men when he died two years ago. His low-cost business model revolutionised the German grocery market - run alongside his brother Karl, two years his senior.

The brothers split the company they founded in 1960 geographically after a feud over carrying cigarettes in Aldi stores. Reclusive: Berthold Albrecht, who died last month, was in charge of Aldi Nord. The 58-year-old was a reclusive and little is known about his personal life Supermarket pioneer: Berthold's father, Theo Albrecht Snr, took over his mother's supermarket alongside his brother Karl, eventually turning it into one of Europe's biggest supermarket chains The supermarket was split in two with Aldi Nord operating in the north of Germany and Aldi Sud operating in the south. Berthold is credited with overseeing the company's entry into the lucrative US market. He was executive board member and chair of the family foundation that owns Aldi Nord, which also owns U.S. chain Trader Joe's. Karl Albrecht, 92, who owns Aldi Sud, is still alive and is the richest person in Germany with a net worth of $22.5 billion (£14 billion), according to a Bloomberg ranking.

OBSESSION WITH SECRECY...THE UNKNOWN SUPERMARKET PIONEERS Little is known about the Albrecht family, described by Forbes as ‘more reclusive than the yeti’. Berthold Albrecht lived a notoriously reclusive life, like his brother Theo Jnr. They follow in the footsteps of Aldi’s original pioneers, Theo Snr and Karl Albrecht. Theo Snr and Karl were once said to own a remote island in the North Sea, where they played golf and indulged in their other hobbies - collecting antique typewriters and growing orchids. The family has always kept out of the spotlight, living behind fortress-like security on estates overlooking the Ruhr valley. They have rarely been pictured by photographers and have never made public statements. Theo Snr’s kidnapping in December 1971 partly explains their hermit-like existence. He was held at gunpoint by Heinz-Joachim Ollenburg, a lawyer with gambling debts and accomplice Paul Kron. The kidnappers held him for 17 days in Ollenburg’s Düsseldorf office. They reportedly demanded to see his ID to make sure they had snatched the right man, given his little-known appearance.

A ransom sum was eventually set at seven million Deutschmarks and was delivered by the Bishop of Essen. The pair were eventually caught and jailed but only half of the money was recovered. Albrecht eventually tried to claim the ransom as a tax-deductible business expense in court. The event had a lasting effect on Theo’s privacy, leading to him driving to work in an armoured car, using a different route every day. The obsession with secrecy also infiltrated the business, with Aldi managers forbidden from speaking to the press and even from speaking to managers in other districts. The obsession with frugality, credited as the driving force behind Aldi’s success, resulted in Theo Snr keeping stub pencil pens rather than a more expensive one. He also wore cheap, ill-fitting suits and preferred plain meals with lots of potatoes. He was once asked to approve plans for a new Dutch store, saying the design was good but the paper used was to thick, adding ‘If you use thinner paper we will save money’. Shared with his brother Theo Jnr, Berthold had an estimated fortune of £11.2 billion, according to Forbes. Berthold leaves behind five children, including quadruplets, who could inherit some of the fortune.

Aldi's progression under Theo Albrecht Snr and Karl Albrecht is one of Germany's greatest economic success stories. The brothers built the supermarket on the foundations of their mother's tiny grocery store, opened in 1913 after they returned from the war. Together they built up Europe‘s biggest no-frills grocery chain Aldi - which is derived from 'Albrecht Discount' - and in doing so were regulars on the Forbes rich list. 'The best quality at the lowest price' has always been the business motto and it made Theo Snr alone a fortune in excess of £11 billion. The group's annual turnover is around £50 billion in the 17 countries it operates in. Aldi has invested £1.5 billion in Britain and has more than 300 outlets, opening its first UK store in 1989. The store has also signalled a rapid expansion plan, with hopes of 1,500 British stores in the next decade. Both brothers delegated more and more in recent years, bringing in outside business talent to run operations. Aldi stores are hallmarked by their frugality - featuring basic packaging and storage on pallets.

Rather than wasting money on fountain pens, managers are instructed to take notes at meetings using pencil stubs under 2in long. Karl and Theo Snr's mother set up a small grocery shop in Essen after their father, a miner and later a baker's assistant, developed the lung condition emphysema. Determined not to follow their classmates into the mines and factories, Karl trained at a delicatessen, while Theo Snr learned the grocery business from their mother. At the outbreak of World War II both were conscripted into the Wehrmacht. Karl fought on the Russian front, where he was wounded, and Theo served with Rommel's Afrika Korps, in a supply unit. He was captured eventually by the Americans in Tunisia, but both made it back to Germany in 1946. The harshness of their childhood, the scrimping and saving that the customers of their mother's shop had to do to get by, made them appreciate the value of money and look for a radical new way of selling goods when they took over.

The rest is retailing legend - from 13 stores just after the war the Aldi ('Al for Albrecht, 'di' for discount) empire marched on to dominate the German retail landscape and much of the world. Rebecca Schuman is a columnist for Slate and the author of Schadenfreude, A Love Story and Kafka and Wittgenstein . She lives in St. Louis. Advertisement Aldi is part of a charming subset of Teutonic trade: the brother-run company that cleaves in twain. Shoe aficionados already know the story of the Dassler brothers , Adolf and Rudolf, whose bitter feud resulted in the creation of Adidas and Puma. (Germans pronounce Adidas differently—some might say correctly—AH-dee-das, from Adi Dassler.) But outside Germany, few know about grocery-store kingpins Karl and Theo Albrecht (who was kidnapped in 1971!)—even though Karl, with a reported net worth of more than 17 billion euros, is the richest man in Germany (Theo’s descendants are a close second). The Brüder founded their discount-store empire together.

A disagreement in 1960 over selling cigarettes hastened a partition, and an epic game of grocery-store Risk: Theo would rename his business Aldi Nord , and would control territories north of the Rhine, plus a healthy chunk of Europe. Karl would head up Aldi Süd , and get southern Germany, more of Europe, plus the U.K. and Ireland. But both companies operate stores in the United States—Aldi Süd operates as Aldi, and Aldi Nord as the now ubiquitous Trader Joe’s . But whereas Trader Joe’s employs just one major cost-saving device— private labeling —everything else about it is Americanized. The place is swarming with upbeat employees; cashiers stand at the till and bag your products for you; you just grab a cart willy-nilly and they trust you to put it back. Aldi also private-labels (those $1.99 “Millville” Rice Squares are Chex, you guys!), but what makes it a more exciting venture—and even cheaper than Trader Joe’s—is that it has imported the entire German grocery experience (aside, alas, from employees yelling at you if you do something wrong).

If you’ve ever visited Germany, you’ve noticed that a 4-ounce glass of juice at a restaurant may run you $10, while groceries—often of much higher quality than their American counterparts—will be noticeably less expensive . This is in part because of cost-cutting shopping practices whose arrival stateside I greet with a robust “Wunderbar!” You can always tell an American in Germany by the way they incredulously don’t get that nobody is going to bag their groceries for them—they’re expected to do so (and schnell!) while the seated cashier is ringing them up. Shoppers also have the option of quickly sticking wares back into the cart and schlepping them over to a special low, wide shelf that’s an official bagging area. As for the cart: It requires a deposit, and customers must return them to their rightful place—without the help of an employee—if they want their money back. These are standard practices at even upscale German Supermärkte, so high-end groceries are cheaper relative to other goods than they are here. This is why I am hoping for Aldi’s rousing success in Amiland: so that more of our stores, and our culture in general, will incorporate such Teutonic efficiency.

First the cost-savings of bagging our own groceries—then the ubiquitous bicycle lanes ; immaculate, punctual public transportation ; and, finally, required paid vacation and parental leave . It would be ausgezeichnet indeed, meine Lieben. How Aldi makes money and stays cheap How Aldi makes money and stays cheap Tweet Share Aldi has profited as other stores struggle, the mix of good quality and cheap prices (with an ever-changing product line) has seen huge growth, expanding into the US as well as in the UK, Australia and Germany. That has led to founder camera-shy Karl Albrecht’s wealth rising to see him become one of the 10 richest people alive. More Last month German retailer Aldi posted a 200% increase in UK profits . The UK business made a profit after tax of £57.8 million in 2011, having made a loss of £56 million in the previous year. The privately owned chain opened 29 new stores last year and plans to invest £181 million opening 40 new stores by the end of 2013.

This will take the number of Aldi stores in UK to 500 and create 4,500 jobs . But how has it turned its fortunes around in such challenging trading conditions? Essentially it’s cashed in on the recession. With household budgets being squeezed and wages stagnating, competition among supermarkets is intense. After all, people still have to eat. Shopping at budget supermarkets was seen by some as a source of shame for the middle classes but it’s this group in particular responsible for the increased profits of Aldi. The chain has introduced some new products to lure the squeezed middle away from Waitrose and Whole Foods, and the subsequent stampede of well-heeled customers has sent profits soaring. “We’ve seen a shift in the socio-demographics,” UK joint managing director Roman Heini told Marketing Week. “Obviously we have kept the existing customers ... but we now also see more A and especially B customers in our existing stores and also in the stores we have opened this year so far.” So who’s behind Aldi? Aldi is short for "Albrecht Discount", Albrecht being the Germany brothers behind the supermarket chain. In Germany the company is divided into two: Aldi Nord (North) and Aldi Süd (South).

The individual groups were originally owned and managed by brothers Karl Albrecht and Theo Albrecht. Karl Albrecht is the richest man in Germany with a personal wealth of €17.2 billion . Theo Albrecht was the second richest when he died in 2010. However, Aldi began when the brothers were just a twinkle in their mother’s eye; their mother opened a small store in a suburb of Essen in 1913. The brothers took over their mother’s business in 1946, and by 1950 they owned 13 stores in the Ruhr Valley, Germany. By the time the company split into two in 1960 they had 300 shops. Their first branch in the UK opened in Birmingham in 1990. International expansion is not just confined the UK – the two groups also have stores across Europe as well as in the US and Australia. Aldi’s plan Aldi’s business model centres mainly on selling its own high-quality brands at low prices. It specialises in staple items such as basic foods, toiletries and cheap household items.

Selling its own generic brands means the store isn’t paying a premium to a major manufacturer for a well-known brand – and so it can pass discounts on to shoppers. In comparison other supermarkets tend to have around a 50% split of own products versus other brands. Although Aldi does sell other brand names, these are normally limited to a maximum of two for any item. Its “special buy” programme consists of stock negotiated at a discount from other brands and sold at a reduced price. That keeps the German store cheaper than the alternatives. A study by Grocer magazine found that on a shopping basket of 33 items Aldi was 16% cheaper than Asda, 20% cheaper than Tesco and 40% cheaper than Waitrose. And despite the bargain basement image, some Aldi products are better than pricier rivals. Last month Aldi came second in Good Housekeeping magazine’s Christmas pudding taste test . While Waitrose came first, luxury department store Fortnum & Mason came a disappointing 29th out of 32 puddings tested. Aldi’s pudding was a fraction of the price too; costing £7.99 compared to Fortnum & Mason's £24.95.

Innovating to stay ahead In response to more customers flocking through the doors over the past couple of years, Aldi has developed bakery, meat and fruit and vegetable ranges to stop people looking elsewhere for fresh produce. Revenue from fresh meat, fruit and vegetables all went up in 2011. Heini says the store has focused on understanding what consumers want and is working with a growing number of UK suppliers to quality products at everyday low prices. Two-thirds of its core range in the UK is now sourced from UK suppliers and Heini claims a week’s shopping costs about a third less than the big name supermarkets. In-store merchandising is based largely on price and, although perhaps bland, it’s successful in communicating what the store is all about: Low prices. Aldi has also spent time researching what matters to customers in different parts of the world: While the Germans don’t mind a queue in the supermarket, Brits do - so in the UK the store operates a different system. And while Aldi has a policy of not advertising in its home market of Germany – it has realised that mass media advertising is necessary in the UK. Much of its success in 2011 can be attributed to its TV campaign: “Aldi.

Like brands only cheaper”, which has the core message that Aldi’s private label is just as good as major brands but is significantly cheaper. It’s a message that has stuck home in these tougher times and as long as the price stays low and the quality high, it’s a success story that’s set to run and run. Reblog Store Wars: Aldi and Lidl | Money | theguardian.com Previous | Next | Index Store Wars: Aldi and Lidl Each week we look at retailers competing in the same sector. This week it is discount grocers Aldi and Lidl theguardian.com , Friday 3 February 2012 07.30 GMT Each week we are looking at two shops competing in the same sector and reviewing what they are offering customers: from how helpful the staff are, to the best bargains currently on offer. Our review will be based on a visit to stores on the same high street, or online, so it will be just a snapshot of how the retailer is performing. In order to get a better idea of which retailers are delivering and which are falling short, we would like you to tell us about your experiences of the same shops.

Some weeks, both stores we visit may do a good job, other weeks there will be one that stands out as being much better or worse. Your reviews will help us discover if this is a trend. This week, discount grocers Lidl and Aldi are under the spotlight. Please continue to tell us which stores you would like us to go to. Lidl Background Originally founded in Germany during the 1930s, Lidl became a discount retailer in 1973 following the huge success of Aldi. It is now bigger than its rival with more than 10,000 stores worldwide, 580 of which are in the UK. The visit 10.30am, 29 January, Sunderland. What it sells Groceries and miscellaneous items. First impressions Nice and calm. A trip to a major supermarket can often be a stressful experience, so the relative quiet of this Lidl store with no music or announcements blaring through the speakers was a refreshing change. Near the entrance was a small bakery which filled the shop with the smell of freshly baked bread and was a nice point of difference between Lidl and its competitors.

There were few staff present in the store, just one stacking shelves and another working at the till, but there were no gaps on the shelves and the shop was clean and tidy. What were the staff like? Few and far between. After passing a member of staff near the front door I didn't see another until I reached the checkout, but that wasn't really a problem given that everything was well laid out and easy to find. Best bargain A box of 15 275ml bottles of Grolsch was on special offer at £8.99. What does it charge? Tin of own brand tomato soup 24p; tin of own brand baked beans 30p; 400g pack of Bourbon biscuits 49p; pack of 10 eggs 85p; 2l bottle of own brand cola 39p. Where can I pay? There were five tills at the front of the store. Just one was in operation on this visit, but the checkout assistant scanned items at an astonishing speed, meaning I was at the front of the queue and out of the store in no time. Is loyalty rewarded? There is no loyalty scheme available.

Lasting impressions It was a surprisingly good experience. A misconception I had going into the store was that I would find a random selection of known brands inside, but Walkers crisps, Heinz ketchup, Colgate toothpaste and plenty of other big names were present and competitively priced alongside the obscure foreign brands for which these chains are known. There was a bit of a jumble sale feel to the centre of the store with fruit and vegetables set next to panel heaters and tubes of floor sealant. But I can see the attraction in having a rummage around an ever-changing and seemingly random bunch of special offers on each visit. Overall rating 8/10. Aldi Background While this German chain has roots going back more than 100 years, Aldi as we know it was born in 1946 when brothers Karl and Theo Albrecht took control of their mother's convenience store and created a group of low-cost food shops. Their first branch in the UK opened in Birmingham in 1990. It now boasts more than 400 stores here and a further 7,000 across 17 other countries. The visit 11.15am, 29 January, Sunderland.

What it sells Groceries and miscellaneous items. First impressions While there were far fewer branded products on offer in Aldi than Lidl, a significant amount of the shop was devoted to fresh fruit and veg, all with very reasonable prices. Staff in the midst of restocking the shelves gave the shop a rather messy feel with empty cardboard boxes everywhere, making navigating a trolley round the aisles difficult. The chiller cabinets at the back of the store had a fascinating range of German and other European meats, as well as a large cheese selection. Wensleydale and cranberry cheese is not something I'd normally associate with a discount supermarket. What were the staff like? Busy. There were plenty of them about but they seemed to be rushing around doing numerous jobs at once, but luckily everything was easy to find. Best bargain While it wasn't yet in stock on my visit, there was an advert in the window for a rather nifty 19" HD ready LCD TV with built-in DVD player for £119.99 arriving later in the week, complete with three-year warranty. What does it charge?

Tin of own brand tomato soup 48p; tin of own brand baked beans 30p; 300g pack of Bourbon biscuits 34p; pack of 10 eggs 99p; 2l bottle of own brand cola 39p. Where can I pay? Of the four tills in the store only one was manned, despite the shop being rather busy. Another member of staff was called and the queue got moving again. As with Lidl, this branch operates an unusual checkout system where all items must be placed back in your trolley after being scanned, then packed at a counter after you've paid. Is loyalty rewarded? There is no loyalty card scheme. Lasting impressions Aldi played up more to the traditional view of discount supermarkets with a bit of a dingy store and too much mess on the shop floor: one aisle was half blocked by a giant cardboard box full of stock needing to be shelved while another had packs of kitchen wipes strewn across the floor. Overall rating 6/10. Adam's verdict It's very easy to act like a supermarket snob on the subject of discount supermarkets.

But from the items sampled there is very little difference between Aldi's and Lidl's products and the discount range at major supermarkets, apart from cheaper prices. Aldi had the stronger range of fruit and veg, but Lidl's inclusion of more branded products meant you could mix between their own products and leading brands. The range is smaller than a traditional supermarket, but it seemed very easy to do a basic shop here and top up at a bigger supermarket or local retailer later on. It's easy to see where costs have been cut: neither shop offered baskets and the checkout system might not be to some people's taste. However, I can't imagine anyone bemoaning the lack of in-store music. A significant number of products were the same price in both stores, but it tended to be Lidl that came out cheapest overall. Last week An experiment in throwing open Store Wars to our readers had mixed results – we had great reviews written by readers, and some commenters joined in with praise for the stores they had chosen. Unicorn was particularly popular. One of its fans, bbrayshay , said: "It's the most brilliant place – truly an alternative supermarket where I can feel confident knowing that everything is organic and top quality.

Not only sells beautiful fresh vegetables and fruit but also a wide range of flours, pulses, spices, cereals, dried fruit as well as also cleaning products and toiletries." And Wayneskie added praise for some of the store's neighbours: "Chorlton has many great independents including Out of the Blue fishmongers (also do great sushi – they have a guy making it in front of you) and the wonderful wonderful Frost's Butchers (suppliers to all the great local eateries)." Some wondered why we were reviewing stores they had never been to, but others did step in and name their favourite independents. For example Atombowl28 said: "Amy Lous in Godalming. Much better than nearby Waitrose or Sainsbury's, better prices, and really really friendly. A pleasure to go food shopping rather than a chore." Let us know which of today's stores you favour, or leave a comment if you are not a fan of either or think another store offers better choice or prices. Which do you rate? Aldi or Lidl?

41% Theo Albrecht: Aldi founder dies a billionaire aged 88 | Daily Mail Online Brothers built global grocery titan from shop their mother opened in 1913 Duo retired to North Sea island and their collection of typewriters Secretive family took four days to reveal death but wouldn't give a cause One of the founding brothers of the Aldi discount supermarket chain has died at the age of 88. Theo Albrecht goes to his grave as one of the richest men on the planet with a fortune in excess of £10billion. He passed away on Saturday in his home town of Essen in western Germany's industrial Ruhr region. But in keeping with his family‘s legendary love of secrecy, news of his passing only leaked out today. No cause of death has been given.

Discount titan: A rare picture of the reclusive billionaire, Theo Albrecht, taken in 1971 Wreaths have been laid at the grave of Theo Albrecht, the joint founder of budget supermarket giant Aldi in the western German city of Essen Together with his brother Karl, two years his senior, he built up Europe‘s biggest no-frills grocery chain Aldi - which is derived from 'Albrecht Discount' - and in doing so was a regular on the Forbes rich list. 'The best quality at the lowest price' was the business motto and it made Theo alone a fortune in excess of £10billion. Annually, the group turns over around £22billion. Aldi has invested £1.5billion in Britain and has more than 300 outlets, opening its first store here in 1989, but plans to have 1,500 in a decade or so. The stores are hallmarked by their frugality - no fancy shelving, goods piled up on pallets, and no chic decorations or piped muzak.

Home to the brothers is a remote island in the North Sea, where they whiled away their time playing golf and indulging in their other hobbies, such as collecting typewriters and growing orchids. Theo was once asked to inspect the plans for a new store in the Netherlands. Having studied them closely, he offered the following advice: 'This layout is very good. But there's just one thing - this paper you're using is too thick. Use thinner paper to save money.' Small beginnings: The Albrecht brothers started out in their mother's corner shop in Essen, which she opened in 1913 The brothers made sure the first store was maintained and is an Aldi branded supermarket to this day Rather than waste money on fancy fountain pens, Theo would also take notes at meetings with senior staff using pencil stubs under 2in long. Theo was born on March 28, 1922 - and for him and Karl, the retail trade was in their blood. Their mother set up a small grocery shop in Essen after their father, a miner (and later a baker's assistant), developed the lung condition emphysema.

Determined not to follow their classmates into the mines and factories, Karl trained at a delicatessen, while Theo learned the grocery business from their mother. At the outbreak of World War II both were conscripted into the Wehrmacht. Karl fought on the Russian front, where he was wounded, and Theo served with Rommel's Afrika Korps, in a supply unit. He was captured eventually by the Americans in Tunisia, but both made it back to Germany in 1946. The harshness of their childhood, the scrimping and saving that the customers of their mother's shop had to do to get by, made them appreciate the value of money and look for a radical new way of selling goods when they took over the shop after the war. Pile it high, sell it cheap: The Aldi chain has spread across Europe, the United Kingdom and the United States, becoming the biggest privately owned grocers in the world The Aldi store in Catford, south London: The supermarket chain's shops never stock more than 500 different items, usually packaged grocery or dry goods, to limit costs Retail giants: Publicity-shy Theo Albrecht (left) and his brother Karl.

In the Sixties, they divided their business in two after a row over whether to sell cigarettes at the till The rest is retailing legend - from 13 stores just after the war the Aldi ('Al for Albrecht, 'di' for discount) empire marched on to dominate the German retail landscape. Perhaps inevitably for two such strong-willed characters, the brothers were not without their disagreements. In the Sixties they fell out, deciding to divide their business in two after a row over whether to sell cigarettes at the till. Karl is said to have been worried that the tobacco products would attract shoplifters and so damage profits. He took charge of the stores in southern Germany (Aldi-Sud) and Theo managed the less profitable northern stores (Aldi-Nord), with the help of his two sons. Although Theo remained involved, like his brother, in the running of the company, a panel of other family members and representatives have helped manage Aldi in recent times. In their semi-retirement the brothers, in the words of Forbes magazine, remained 'more reclusive than the Yeti' - which can be partly attributed to a terrifying ordeal suffered by Theo in 1971.

Kidnapped at gunpoint by a lawyer with gambling debts, he was held for 17 days in his abductor's Dusseldorf office, before eventually being released for a £1.5million ransom. The kidnapper - who later received a prison sentence of eight-and-a-half years - was so surprised by the nondescript appearance of his charge that he demanded ID to ensure he had captured the right person. True to form, Theo bargained over the ransom for his own release and later applied for tax relief on the ransom money as a business expense. Where Theo‘s death will leave the empire is uncertain. Karl Albrecht, German Grocer And Reclusive Billionaire Behind Aldi Supermarkets, Dies At 94 Karl Albrecht, German Grocer And Reclusive Billionaire Behind Aldi Supermarkets, Dies At 94 {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. Full Bio The author is a Forbes contributor. The opinions expressed are those of the writer. Loading ... Loading ... This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}.

Subscribe Karl Albrecht , the billionaire German grocer who took his mother’s humble corner store and expanded Aldi supermarkets to nearly every corner of the globe, has died at 94. He was the richest person in Germany with an estimated $25.9 billion fortune. His wealth was the result of industrious Spartanism. Albrecht, who was injured on the Russian Front fighting for Nazi Germany, stepped behind the counter of his mother’s shop in the years following World War II, a time when conflict-weary West Germany was desperately poor. By the 1950s, Albrecht and his brother, Theo, had a chain of stores after expanding up and down the Rhine River from their start in the old industrial region of Rhur. Further growth, Albrecht realized, would require them to run their business on the cheap—and price their goods with the same frugal mindset. The Albrechts dismantled their stores’ decoration, scrapped their advertising and limited what they carried to 300 quick-selling items (mostly dry or canned goods). No perishables or anything liable to run up expenses. They sold their wares as much as 20% below the competition. Branch managers had no telephones.

They were told to use the nearest pay phone. By 1961, Karl and Theo were working off the concept of divide and conquer. Karl would take the storefronts in southern Germany under the name Aldi Süd, as well as the rights to America, Australia and Britain. Theo got the stores in mainland Europe . Their thriftiness soon made them rich. (Forbes first estimated their collective wealth in 1988 at $1.2 billion.) As a matter of fact, their affluence become so well known that it became a hazard. Theo was kidnapped in 1971, and the hostage-takers received 7 million deutsche marks in ransom. The caper left the Albrechts shaken and made them reclusive for the remainder of their lives. Aldi hit America in 1976 with a store in Iowa. As in Europe, the stores operated using a principle Albrecht had come to internalize: “Poor people have to buy cheaply, rich people like to.” By the 1990s, Albrecht had 300 stores in America. They made Wal-Mart, that Mecca of coupon-clippers, look frivolous by comparison.

Aldi still advertised little. Stores weren’t even in the phone book. It avoided putting shops in costly strip malls and made the locations about a third smaller than typical groceries. By this point, Aldi’s catalog was bigger (some 600 items), but they were still dirt cheap. When FORBES examined Aldi prices tags in 1993, apple juice sold for $1.19 in Aldi and $1.58 in Wal-Mart. It was in the late 1990s that Albrecht stepped away from leading the company and turned over duties to his son, Karl Jr. In 1997, the Albrechts (meaning both Theo and Karl) were worth $11.5 billion. Theo, who added Trader Joe’s to his grocery empire in 1971, died in 2010. His son, Theo Jr., and his family are worth $11.5 billion. Their portion of Aldi, called Aldi Nord, is owned by a family foundation. It serves two purposes: to pay out dividends to the heirs and prevent the company from breaking up under pressure from competing branches of the clan.

As for Karl, his fortune continued to rise as Aldi expanded in America and overseas (to more than 1,300 stores in the U.S. and another 3,500 in eight other countries). It placed him alongside the wealthiest in the world. As recently as 2012, he ranked 10th on the World’s Billionaire list. Put another way, the shopkeeper’s son was worth more than many monarchs, criminal masterminds and despots—and controlled a fortune roughly equivalent in size to the yearly economic output of El Salvador. Albrecht died last Thursday. The funeral was reportedly held today . He is survived by two children and six grandchildren. Post Mortem - Theo Albrecht, Trader Joe's owner, dies Theo Albrecht, Trader Joe's owner, dies Update 11:30 am Thursday 7/29: The full obit has been posted. Theo Albrecht, one of Germany's richest people and the businessman who brought the Trader Joe's grocery chain to cities around America, died July 24 in Essen, Germany. He was 88.

Famously reclusive and secretive -- their last photo appeared in 1980, according to Der Spiegel magazine -- Mr. Albrecht and his brother Karl made their fortune when they took over their parents' grocery store and turned it into the international Aldi chain. In 1971, Mr. Albrecht was kidnapped for 17 days until his family paid a ransom of 7 million deutsche marks ($4.6 million). He bought Trader Joe's in 1979 and expanded the discount chain, which features cheap wine, giant chocolate bars and workers wearing Hawaiian shirts, from the West Coast to more than 340 outlets in nine 25 states (plus D.C.) across the United States. (The Washington area already has three at least 10 Trader Joe's stores, and rumor has it that the grocer is contemplating opening a new outlet in Arlington near the Clarendon Metro station.) Even though TJ's wraps it vegetables in layers upon layers of plastic, it has a reputation for attracting crunchy-greenie natural-foods types. That image has come under scrutiny in recent years as the company has refused to freely disclose the sources of its products.

Forbes magazine reported in 2010 that Theo Albrecht's fortune tops $16 billion, making him the 31st richest person in the world. (This post has been updated.) By Emma Brown | July 28, 2010; 10:36 AM ET

Question: ‘Albrecht Discount’ supermarket is better known by what name?
Answer: Aldi