Aldi, one of the world’s leading supermarket chains, remains a private company and has not yet gone public. So, is there an opportunity for investors to participate in an IPO of Aldi in the future? Let’s explore the likelihood of this and how to invest in Aldi’s stock when the company decides to go public.
1. How did the Albrecht brothers transform a small family business into a multinational corporation?
Aldi, now one of the largest grocery store chains in the world, began with humble beginnings as a family-owned store in East Germany in 1913. Over the years, the company has maintained its family-oriented traditions, being run by the two brothers, Karl and Theo Albrecht, after World War II. Aldi officially came into existence in 1946 and quickly expanded, reaching 13 stores by 1950.
A key feature of the Albrecht brothers’ management style was their ability to optimize costs, allowing the company to maintain an efficient business model. However, in 1960, a dispute between the two brothers over whether to sell tobacco led to the division of Aldi into two separate companies: Aldi Nord and Aldi Süd. Despite the split, these two entities maintained a close collaborative relationship and continued to grow under the Albrecht family’s oversight.
An important factor that fueled Aldi’s rapid expansion was the collapse of the Soviet Union and the reunification of Germany in 1990. From then on, Aldi Nord and Aldi Süd expanded globally, with more than 12,400 stores in 11 countries. Aldi Nord also extended its reach into the U.S. market by acquiring the Trader Joe’s chain in 1979. Thanks to its cost-effective business model, Aldi became synonymous with affordable grocery shopping, offering low prices while ensuring quality and limited inventory.
2. The recent growth of Aldi
Aldi’s business model has increasingly proven effective, especially in the context of global economic fluctuations. It is forecasted that Aldi’s net revenue will reach $170.5 billion by 2026, demonstrating steady growth from 2016 to the present. Despite global inflation causing a 24% increase in the Consumer Price Index (CPI) during this period, Aldi has continued to maintain impressive global growth.
Inflation has been a key driver of Aldi’s growth in recent years, not just because of price increases but also due to a shift in consumer purchasing behavior. When the CPI rises, consumers often turn to discount grocery stores like Aldi, which offer lower prices compared to competitors. Aldi has effectively capitalized on this trend, continuing to attract a large customer base through its smart business model, delivering maximum benefits to consumers even in challenging economic conditions.
3. How to invest in Aldi?
Aldi is not a publicly traded company, meaning it does not list its shares on the stock market. The entire Aldi system remains privately owned and is currently controlled by the Albrecht family. The company operates under two main branches: Aldi Nord and Aldi Süd, both of which are subsidiaries of Aldi Einkauf GmbH & Co. OHG.
Therefore, for investors, there is currently no opportunity to invest directly in Aldi through the stock market, as the companies within the group are private and do not offer shares to the public.
4. Will Aldi have an IPO?
So far, Aldi has not made any specific plans to conduct an IPO (Initial Public Offering). This decision will depend on Aldi’s parent company, Aldi Einkauf GmbH & Co. OHG. At present, neither Aldi Nord nor Aldi Süd have any plans to go public.
However, this does not mean Aldi will remain a private company forever. If the company needs to raise significant capital to expand its operations, it could decide to pursue an IPO. In such a case, Aldi would announce the official timing of the IPO.
5. Who is the current owner of Aldi?
Aldi is currently managed by Aldi Einkauf GmbH & Co. OHG, the parent company of both Aldi Nord and Aldi Süd. According to Forbes, Aldi Einkauf GmbH & Co. OHG is ranked among the largest private companies in the world, with an estimated value of $60 billion. As a result, the Albrecht family—who founded and have managed the company since its inception—remains the primary owner of the group.
Although Aldi does not currently have plans for an IPO, in the future, if the company decides to raise capital through the issuance of shares, investment opportunities may arise. Investors should monitor the situation and be ready when the time comes.
