Aldi Nord and Süd intensifying cooperation

Shopping carts Aldi Nord. Photo: pixabay/ pinacol under Creative Commons license CC0.

Everbody knows the story of two brothers who – out of one single outlet in Essen, Germany – built up a worldwide retail giant of discount stores and introduced its name Aldi, a syllabic abbreviation for Albrecht Diskont. Later they split their operations and their potential market into two separate groups, which then became Aldi Nord, headquartered in Essen, and Aldi Süd, headquartered in Mülheim an der Ruhr. In the past the two operated independently – each within specific geographic areas – as separate entities, sharing one concept, and only co-operated if a strategic advantage could be obtained.

This about to change soon. Suppliers are used to working with Aldi Nord and Aldi Süd separately. Sometimes even to working with Aldi IB (International Buying) and some might even have experienced Nord buying on behalf of Süd and so on. If you are doing business with Aldi Nord and Süd on a regular basis it might not be new that both sisters are now officially intensifying their cooperation. As Lebensmittel Zeitung reports both sides are working on reorganizing their buying procedure, especially for their private label activities. Reportedly, both organizations already finished an analysis on how to split product groups in order to make the best possible use of synergy effects. As the grocery newspaper reports, some suppliers have already been informed that in the future they will have only one contact person for both organizations.

This will probably come along with a unification of their private label brands and I am very sure it will affect suppliers of Aldi´s permanent assortment more than suppliers of seasonal promotions. Up until today it is rare that identical private label packages with same content are sold in both organizations at the same time, but I am very sure it will become standard in the future. I do not expect both organisations to merge, but definitely while intensifying their cooperation Aldi will start to compare terms and conditions on a worldwide basis and invite suppliers to negotiate contributions, especially of their branded suppliers.

Photo: pixabay/ pinacol under Creative Commons license CC0.