Aldi is growing at a rapid pace, growing from 1 to 5 stores in Germany in the past 2 years.
So now that the stock market is rising, people are wondering if they should invest in a company with such a low public profile.
It may seem like all that matters is getting the stock price at a higher number. But, do not forget to read this.
Can You Buy Aldi Stock In 2022?
The grocer has recently announced that it will be increasing its stake in Canada’s largest convenience store chain, as well as acquiring the chain’s real estate assets and a minority stake in a company known as Puma Worldwide.
With the new Aldi deals coming in, it’s time to start stocking up your cupboards and pantry! So, we’ll go over everything you need to know about Aldi stock!
Understanding Aldi’s Company Structure
Though it is a privately owned company, Aldi is one of the largest retailers in Germany and the world. They can easily afford their operations and are enjoying the benefits.
The founder and CEO, Karl Werner, started the company with his brother and business partner in Germany in the 1970’s. They named the company Aldi and opened a few stores. Their customers liked the low prices and the fact that they sold items of better quality than most German supermarkets.
Aldi, founded in Essen, Germany in 1946 by a pair of brothers, is a German-based retail chain selling groceries at low prices, much like Costco. Aldi started its expansion in the 1960s, opening its first U.S locations in the late 1970s. Today Aldi has 650 stores across North America.
Aldi South has been going well since its acquisition by Lidl. However, the company has been in a bit of a holding pattern as it evaluates what needs to be done to move into Australia and expand into other countries.
Aldi is still a family run business. Their father was in charge of Aldi Sud until his death in 2002, and their mother, Magda, now runs the Aldi Nord chain. Both brothers left the company to their families in the late 1990s.
If you wanted to know why ALDI is so successful, ask the man himself, Albrecht Diem. In Germany, Diem was the president of a large discount chain that was a great success. In the States, the company’s founder, Alden, took it and opened up a chain of grocery stores.
How Does Trader Joe’s Fit into the Mix?
The company has a bit of a schizophrenic ownership structure. In 2014 it was bought by an investment firm called A2G, which is owned by a subsidiary of the German company Groupe Casino. Then Casino Luxembourg, who was the parent company of Casino SA, bought up A2G and its subsidiaries in 2015.
Aldi, while run by the Aldi family of Germany, is not owned by them. Instead, it is owned 100% by the Aldi Group. The Aldi Group also owns Trader Joe’s, but both companies are independently operated.
Ok, So Why Isn’t Aldi On the Stock Market?
Aldi has a clear path to profitability without the risk of the stock market. Investors have confidence in Aldi’s ability to grow and improve their business, but investors are aware of the risk they’re taking on with their investments.
Their stock is extremely low, mostly because they’ve done one thing really well. As a private company, they can easily control their stock and make sure any shareholder won’t really be a threat. By making sure the products they sell are of high quality, and by keeping Aldi’s prices low, they’ve been able to keep their market share at a very high level.
Aldi Nord and Aldi Sud, operating under their parent company, are set in their systems and values. It’s pretty clear that they have their inner workings down to a science, so inviting in outside opinions and investors just isn’t necessary.
Here’s the tricky part, the actual quote doesn’t have anything to do with your situation or the context you’re talking about and instead is alluding to a generalization about all German supermarkets.
It’s more acceptable for Aldi to continue to operate for its customers and to meet its employees needs rather than to try to be a business that is concerned with more than just profit.
It’s easy to see how this is true. Not only is it easy to see why they are in this situation, but it’s also true that their situation makes it easy for them to remain as they are.
Will Aldi Have An IPO Or Go Public In 2022?
Many, many, many people are wondering if Aldi will ever go public? It’s been a while since Aldi was public, but maybe their next round of shareholders will get to enjoy the dividends. If you’re wondering if Aldi is planning to go public, the answer is yes! However, a 2020 IPO is not guaranteed. Even if they do go public, the shares are likely to be in low demand, due to the fact that Aldi hasn’t had an enormous uptick in earnings for the last few years.
The lack of a public market means that the only way that this company can raise any money is through debt. And while that could be a good thing, the fact that the company is already profitable is a negative point.
IPOs for Those Still Wishing for Aldi Shares
A great choice would be to check out the discount grocery stores section of this list of best discount grocery stores.
Grocery Outlet stores are smaller than Aldi, but still offer competitive prices so they are good for those looking for a bargain.
If you haven’t checked out Grocery Outlet before, you don’t know what to expect.
On the other hand, you can have a Grocery Outlet IPO, but be aware, they’re not cheap, which is why we have a special, the Retail IPO Price Tracker, to help you see just how cheap your Grocery Outlets are.
This is a private company that sends Instacart groceries. So if you’re not willing to let go of the invest-in-Aldi idea, you can Kind of invest in Instacart, secondhand, by buying Instacart shares. It’s not available yet, but it will be available soon.
Instacart is a mobile app that makes grocery shopping as easy as you can possibly imagine.
The pandemic has kept many of us inside, so grocery delivery has increased tremendously.
While the prices may be higher on Instacart, you’ll still get the groceries delivered to your doorstep, which is better than having to pay for a trip to the grocery store.
Some people believe that the convenience of shopping for groceries online and either having them delivered to you while you wait or dropped at your doorstep is a luxury that we hope sticks around forever. Keep an eye out for Instacart’s parent, Delivery.com shares.
The prices in the Aldi stores tend to be cheaper than the prices in the regular grocery stores and I think it is because they sell lower priced private label products that the regular grocery stores don’t want to sell. For example, Aldi sells some private labeled cereals that they call ‘Aldi brand’ that are cheaper than store brand cereals.
Final Thoughts
So if you had some money to invest, you could probably make it do a bit better, because the Aldi company doesn’t care about making money. All they want to do is sell.
It’s possible that the company will be acquired at some point in the near future, and shareholders will be fully compensated if the company’s core business is in decline. It appears that it’s more likely that the company will go bankrupt, which would probably lead to a fire sale of its assets.
No, Aldi is not “just another company”. They are a German grocery store and they are making a profit. They operate with a business model that provides the best value for the customer, something that we as a society should respect.
If you are interested in Aldi, we suggest purchasing items online and then you can always pick up in store the next day!
But the thing is, you never know, times change faster than the products in the Aisle of Shame, so you never know it, could happen.
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