Germany: ALDI invests more in own store real estate
Discount Retail Chain Aldi Süd (German family owned) operates 1,980 stores in Germany alone, of which 1,283 (65%) are self-owned. In the last three years alone, more than one billion euros have been invested in the company's own stores and are to be further expanded.
A good example of this is Hamminkeln, a city in northern North Rhine-Westphalia, where Aldi Süd opened its 2,000th store just a few weeks ago. The investments consist of conversions in 2019 to 2021 with a total sum of approx. 544 million euros. In the same period, approximately 803 million euros were spent on modernization.
Real estate business and property at the top of the priority list
Aldi Süd continues to aim to expand its own assets. Also, purchases or objects to build in ownership, are possible and considered. This responsibility now lies with the newly founded project development company, which has a good and solid equity ratio. In recent years, this has been around 64 percent and the self-built real estate assets amounted to approx. 4.6 billion euros in book values.
For larger investments, Aldi Süd always has financially strong owners who could help. According to the last balance sheet from 2021, the real estate company had liabilities to the companies in the amount of approximately 950 million euros. This figure was even over one billion euros, which Aldi owners made available for new investments.
Aldi Süd background information
The Aldi SOUTH Group is one of the leading trading companies in Germany and Europe and is now active with around 2,000 locations in southern and western Germany. In order to make the store locations and the immediate surroundings particularly attractive, the 30 regional sales companies work in partnership with municipalities and cities.
Now the focus is also increasingly on the development of mixed-use real estate. In addition to purely commercial real estate, retail space is being built in combination with areas for residential or office use as well as various other services, especially in cities and conurbations.
The type of use depends both on urban development requirements and on the property-specific framework conditions. Aldi Süd has been operating a large number of stores in combination with apartments for some time. The company implements such projects both in cities and in conurbations such as Cologne. Also, there are already branches in buildings where private apartments are located. A very positive example of this is a project in Tübingen and one in Munich.
See here for more: Kunden: Das Geld sitzt nicht mehr so locker (supermarkt-inside.de)
#smartdiscount #aldi #realesate #germany #expansion #investments #growth #bookvalue #store #drc #discount #retail #consulting #discountretail #discountretailconsulting