Build story · Germany · 1946–2023
Aldi: 90% private label and a fraction of the products
The Albrecht brothers built a discount grocer that stocks only a small range, mostly own-brand products, in simple stores — becoming a global force and the UK's fourth-largest grocer.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Core products
- often under 2,000
- Share own-brand
- around 90%
- US entry
- 1976
- UK ranking (2022)
- fourth-largest grocer
What happened
Brothers Karl and Theo Albrecht took over their mother's grocery store in Essen after the Second World War. They kept prices low by stocking few products, keeping stores plain, and avoiding advertising. In the early 1960s they split the business into Aldi Nord and Aldi Süd.
Aldi carries a small range — often under 2,000 core products versus tens of thousands in a typical supermarket — and around 90% are its own brands. With fewer products, it buys huge volumes of each, negotiates hard, and keeps operations simple: goods displayed in shipping boxes, staff who handle every task, and coin-deposit trolleys that customers return themselves.
Aldi expanded across Europe, the US (from 1976), and Australia. Aldi Nord also owns Trader Joe's in the US. In 2022 Aldi became the UK's fourth-largest supermarket.
Timeline
- 1946
Brothers take over the family store.
- 1960s
Business split into Aldi Nord and Aldi Süd.
- 1976
Enters the US.
- 2022
Becomes UK's fourth-largest grocer.
what made it work
- Small range concentrates buying power.
- Own brands remove brand premiums.
- Operational simplicity cuts labour and space costs.
the lesson
Doing less — fewer products, simpler stores — can be the most powerful way to offer lower prices.
Apply it to your business
- 1Cut low-selling items to simplify operations.
- 2Consider own-brand products for better margins.
- 3Let customers do small tasks that save you cost.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.