Institute for Simplicity

Consulting Based on the Principles of Simplicity
  • Quote

    • The condition for a good organization is a large garbage can. Kurt Tucholsky

ALDI Trying to Compete Desperately

Article published on 2018-04-06

A Hard Discounter does not need to offer everything

Impossible but true: ALDI without profits

Article published on 2018-04-03

In the past, ALDI was a role model with its disruptive business model and its consistent and disciplined management. This led to the highest profits amongst grocery retailers. Today, ALDI is becoming a role model for leaving its convincing and proven business model behind and consequently generating losses. 

The German business journal „manager magazin“ reports in its newest edition (4/2018) how pretax profits of ALDI South in Germany have dropped from 3,6 % in 2016  to 1,7 % only in 2017. In December, profits even turned into a loss of -2,87 %. For 2018, the management of ALDI South expects to follow the same trend. 

Walmart is next

Article published on 2017-03-06

Aldi (and partly Lidl) have given the established retailers in Great Britain and Australia a hard time. The question was always when does Walmat in the US start suffering. They already made their experience in the UK where life got pretty miserable for Asda. Now Walmart gets attacked in their american home market. Their claim „Save money. Live better“ is at stake. Apparently Walmart is not so much a discounter as they always seemed to be.

The German Lebensmittelzeitung announces now that „the retailer will reduce prices on their american home market in order to attract customers again.“ Walmart´s price reductions proof that their prices had been too high.

Older entries:

01.02.2017: Aldi wins again “Global Simplicity Index”

28.12.2016: About the complexity of modern payment methods

22.11.2016: ALDI is becoming a very normal company – ALDI today and the ALDI system

14.10.2016: Eurowings: The complexity of Wining and Dining

07.10.2016: Mixed boxes: Discounters heading into the wrong direction

12.02.2015: Tesco: Caught by complexity and What is Top Management good for?

17.12.2014: Sales per Squaremeters or Concentration on the Essentials

24.10.2014: Concentration and Working in Focus Areas

29.09.2014: “The greatest shortcoming of the human race is our inability to understand the exponential function.”

25.07.2014: What remains after Karl and Theo Albrecht have passed away

30.01.2013: Marissa Mayer: a little bit of Google at Yahoo Inc.

03.01.2013: Interview of Retail News, Turkey, with Nils Brandes, Co-Author of “Bare Essentials – The ALDI Way to Retail Success”

21.10.2012: What is essential?

23.09.2011: Out of Control: UBS Investmentbanker Adoboli causes loss of more than 2 Billion Franks

08.09.2011: About today´s complexity: crazy European Union

25.08.2011: The “Koefte-Consultant”

07.08.2011: Ploughhorses or Showhorses