Germany: The Aldi Code - the global discounter's success criteria
Journalists are rarely allowed to look behind the scenes at Aldi. The German broadcaster Deutsche Welle (DW) was allowed to shoot in a logistics center of Aldi Nord and shows how the discounter chain works. The article tries to explain what the success criteria behind the discount chain is.
Pallets and slashed cardboard boxes, no advertising and the claim to always have the cheapest price: This was the principle Aldi invented in 1946 as the discount store's recipe for success. A lot has happened since then, and the global discount chain now has around 11,000 branches worldwide. Despite the low prices, Aldi Nord makes record sales per square meter of retail space compared to other discounters. However, due to the low prices, profit margins are only slightly above the purchase price.
How did Aldi achieve this unique success?
A video from the radio station "Deutsche Welle" now gives a rare glimpse behind the scenes at Aldi Nord. He gives answers to the question about the success secret of the discount chain. The camera team was allowed to be there early in the morning when the goods were loaded in one of the almost 80 Aldi Nord regional logistics center. It is very rare for journalists to receive filming permits and interview appointments with Aldi managers, because the Aldi Group has always shielded itself as best it can from the public.
One of Aldi's secrets to success is the distribution via the logistics centers. Stores are supplied from there because the shops themselves hardly have any storage space. That saves costs. At 6 a.m. in the morning, the branch employees then have to fill 30 percent of the shelves fresh in a hurry, the DW report shows.
Since the customers come from 7 a.m., the placement process has to go so quickly that the branch manager says in the article: “You automatically do sport here.” The employees at Aldi are known for their speed, which is also considered the recipe for success Discounters. For this they are paid above the average tariff, say some employees to journalists at DW.