A family feud and falling sales are threatening the future of the ALDI discount supermarket chain.
The company experienced considerable losses in Germany last year, only making a profit thanks to its foreign operations.
In 2017, German profit after taxes halved to about 200 million euros. Last year saw a loss of at least 10 million euros. The drop was partially blamed on renovation and new store opening costs.
In 2017, the board agreed to a major investment and modernisation program and an end to the company’s traditional practice of operating according to strict rules governing order and obedience.
It’s since been revealed that the will of the late wife of one of ALDI’s founders, Cäcilie Albrecht, has declared that her grandchildren and their mother are excluded from future business decisions.
The will accuses the five children of her late son Berthold and his widow Babette of lavish spending that is at odds with the firm’s frugal philosophy, and of siphoning millions from company funds to finance their lavish lifestyles.
ALDI was founded by brothers Karl and Theo Albrecht (Cäcilie’s husband) in 1946, with the name being short for Albrecht Diskont. It split into two separate companies in 1960, now known as Aldi Nord and Süd.
Both arms operate internationally, with more than 10,000 stores in 20 countries, including Australia.
The German retailer is governed by three foundations – Markus, Lukas and Jakobus – to protect ALDI from a hostile takeover.
Cäcilie’s will says Babette and her children misused more than €100million from one of the family’s foundations and blocked vital company decision-making.
Albrecht declared: “With this document I undertake to ensure the preservation of the philosophy of our family, which is to serve the consortium Aldi Nord and to foster this, at the same time as setting aside self-interests and practising a modest and abstemious way of life.
“Berthold himself said when he was alive that he had considerable doubts as to the suitability of his children to respect the life’s work of my husband who, with my support, built the consortium Aldi Nord, and to serve it with respect and with responsibility towards its thousands of employees.”
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