Core Insights - Aldi has emerged as a significant player in the retail sector, with over 13,000 stores across 18 countries and a global revenue of €112 billion in 2023, marking an 8.7% year-on-year growth [1] - The company has been recognized as the fourth strongest retailer globally according to the National Retail Federation's 2024 "Global Retail 50" list, particularly making strides in the competitive North American market [1] Company History and Strategy - Aldi was founded in 1913 by Anna Albrecht in Essen, Germany, and was taken over by her sons Karl and Theo in 1946, who focused on cost-saving as a core competitive strategy in a post-war economy [2] - The brothers simplified the discount model by directly reducing prices instead of using complex coupon systems, positioning Aldi as one of the first discount stores globally [2] - They emphasized inventory management, opting to remove slow-selling items rather than promoting them, which led to a streamlined product offering focused on bestsellers [2] Operational Efficiency - Aldi's average store size is only 2,000 square meters, significantly smaller than traditional supermarkets, which allows for a focused selection of around 1,400 products compared to the typical 40,000 found in larger stores [3] - The company employs a unique approach to customer service, requiring a 25-cent deposit for shopping carts to minimize labor costs associated with cart retrieval, thereby passing savings onto consumers [3] Product Offering and Pricing - Over 90% of Aldi's products are private label brands, which helps eliminate brand premiums and marketing costs, resulting in lower prices for consumers [4] - Aldi utilizes an "immediate display packaging" method, where products are displayed in their shipping boxes, facilitating quick restocking and saving storage space [4] - The company claims its prices are 50% lower than traditional supermarkets and approximately 15% lower than Walmart in cities like Houston and Chicago [4] Market Positioning - Aldi's success illustrates the effectiveness of a "less is more" strategy in retail, focusing on minimalism and efficiency to meet consumer needs [5] - The retail landscape is shifting from a focus on size to a focus on accurately addressing consumer demands, as demonstrated by Aldi's business model [5]