Karl Albrecht, the reclusive businessman who became one the world’s wealthiest people after co-founding the Aldi discount supermarket chain after World War II, has died. He was 94.
He died in Essen on July 16 and was buried in a private ceremony today, the Frankfurter Allgemeine Zeitung reported.
Albrecht was the second-richest person in Germany and the 35th-wealthiest in the world, with an estimated fortune of $20.9 billion, according to the Bloomberg Billionaires Index. With his brother, Theo, he built a supermarket chain that ranked as the world’s 12th-biggest retailer in 2012, according to research company Planet Retail.
The Albrecht brothers split the chain into separate companies - Aldi Süd and Aldi Nord - in the 1960s following a feud over whether to sell cigarettes in the stores. Karl, who didn’t give interviews to the press and withdrew entirely from public life early in this career, took over management of Aldi Süd, which has outlets in southern and southwest Germany as well as the US, the UK, Ireland, Australia and eastern Europe. Aldi Süd operates more than 4,860 stores, according to its website.
The brothers had a low-cost business strategy: a limited assortment of goods that pared down supply expenses, and a minimal level of advertising. The result was a shopping experience that lacked the refinement of brightly lit supermarket chains. In return, consumers often paid less than they would have elsewhere.
‘Very Simple’
“The key to success was to stick to that strategy without compromising,” Dieter Brandes, a member of the Aldi Nord supervisory board from 1975 to 1985, said in an interview in 2012. “It’s a very simple shopping experience. The Aldi system will, for sure, work for another 10 years successfully.”
Karl Hans Albrecht was born on Feb. 20, 1920, in Essen. His father was a miner and baker, and his mother ran a grocery store. He served in the German army during World War II and was wounded on the Russian front.
The Albrecht brothers took over their mother’s store in Essen in 1946 and within seven years they developed it into a 30-outlet network of discount supermarkets that served the region. The first Aldi supermarket outside Germany opened in Austria in 1967 and the first US store in 1976.
In 1971, Theo was kidnapped by amateur con men, who demanded 7 million deutsche marks from the family. Karl successfully negotiated his release before the kidnappers -- a convicted burglar and his accomplice lawyer -- were arrested. Karl stepped down as Aldi Sued chief executive officer in 1994 and as chairman in 2002.
Theo Albrecht, who also owned Trader Joe’s stores in the US, died in July 2010 at age 88.
Karl Albrecht established the Elisen Foundation to support cultural causes, and his Oertel trust, which controlled a portion of Aldi Süd, also donates to medical research.
He was married, with two children and six grandchildren. His hobbies included golf, raising orchids and collecting antique typewriters.
Bloomberg News edited by ESM
