Can You Invest in Rapidly Expanding Aldi‘s Stocks in 2024?
Over the past decade, Aldi has been one of retail’s biggest success stories. They’ve expanded to over 11,000 locations across 20 countries and counting. With this remarkable growth trajectory, it’s no wonder investors get tempted by the Germans’ golden touch.
However, your quest to acquire a piece of this supermarket giant hits a roadblock. Aldi has never sold public shares and has no intentions to in the foreseeable future.
A Loyalty to Remaining Private Since 1946
After taking over their mother’s corner grocery store in postwar Germany, the Albrecht brothers prioritized keeping full ownership and control. This focus has persisted over 75 years later through generations of family leadership.
By the numbers: Aldi‘s private status fuels growth
- Over 11,000 global stores
- More than 40% sales growth in last decade
- Nearly 2,000 additional US locations planned
Staying private shields Aldi from shareholder pressures for short-term profit boosts and allows continued focus on expansion through a lean cost model. As a result, they‘ve achieved greater scale and sales growth compared to key public competitors:
| Company | 10 Year Sales Growth | Store Count Growth |
|---|---|---|
| Aldi | 40%+ | 60%+ |
| Kroger | 18% | 3% |
| Albertsons | 11% | -17% |
The Barbarians are Not Coming for Aldi’s Gate
In today’s market, most growing brands get gobbled up by private equity takeovers or cash out through eventual IPOs.
Could this fate await the secretive German family chain?
No way, says this analyst. Aldi is strategically smart enough to avoid upending a proven model that’s led to runaway success.
Issuing public shares would force exposure to activist investors seeking influence. And a buyout could jeopardize generations of cherished company culture.
The Albrechts have seen public competitors get acquired by instrument-of-the-stock-market barbarians. They’ll remain content behind their family-controlled walls.
Alternatives – Public Firms Offering Grocery Investment Exposure
Though you can’t yet add Aldi shares to your portfolio directly, several public companies provide exposure to trends in the food retail sector:
Costco – The warehouse giant is increasingly prioritizing fresh grocery options. At over 10% sales growth, Costco gives a retail angle but doesn’t match Aldi’s discount appeal.
Ocado – This British firm operates online grocery fulfilment technology. They’ve seen 25%+ yearly revenue increases thanks to digital acceleration in the pandemic.
Neither provides an identical investment proxy for Aldi’s unique operational model and loyal value-focused shopper base. But they offer angles on the broader grocery sector’s evolution.
The Crystal Ball Says…Steady As She Goes
Reading between the lines, all signs point to Aldi sticking to the private script indefinitely. The family culture and lean cost model form a formula they won’t mess with while continuing to open stores at breakneck speed.
Could we see an IPO or acquisition materialize somewhere down the long and winding road? Sure. But the Aldi‘s sights will remain locked on their proprietary model for eons to come.
For investors seeking European retail exposure, better hunt in the public equity forests rather than seeking this private giant’s pot of gold. Aldi’s unwilling to let down their drawbridge to capital invaders.
