What is Aldi’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Aldi because it is a private company. However, Kroger (NYSE: KR), Costco (NASDAQ: COST), and Walmart (NYSE: WMT) are grocery stocks that traders can invest in.
If you want to cash in on the Aldi opportunity, you might have to wait until the company announces an IPO. Currently, the company has no plans to go public, and quite frankly, it doesn’t need any funding either. Although private companies enjoy the liberty of making their own decisions without considering shareholder opinions, the company management follows the approach that if it isn’t broken, don’t fix it.
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Aldi Introduction (No Stock Symbol)
Aldi is one of the fastest-growing grocers in the United States. They operate over 2000 stores in 36 states. It also plans to open 2500 stores and expand into new states by next year. As a result, Aldi has become the ninth-largest grocer in the United States. Worldwide, Aldi operates around 10,000 stores, including the Trader Joe’s markets in the United States.
The company is using a $3.4 billion investment to expand to 2500 stores by the year-end of 2022. So, can you trade Aldi stock? They’re a family-owned business that doesn’t need external financing to grow rapidly or maintain its operations. Aldi’s financial information is also difficult to find. However, the food industry estimates Aldi USA’s 2020 revenues to be $15 billion.
Demand for Aldi Stock
Aldi is known for being efficient and also for its low prices. Aldi has created an innovative model where customers must use vending machines to rent shopping carts. Consumers are charged 25 cents and reimbursed when the customer returns the cart. In this way, Aldi is removing the need to hire individuals to bring bag trolleys from the parking lot.
The company can also minimize costs by opening small stores with limited items compared to bigger grocery stores. For example, the average Aldi only stocks around 1400 of the most common grocery products compared to the average of 225,000.
The reason why Aldi is so famous amongst its consumers is that it sells high-quality products. Aldi’s products contain no certified synthetic colors, added MSGs, or partially hydrogenated oils. The chain has attracted a cult-like following because of its low prices and high quality.
Their discounting policies have hurt traditional supermarket chains and scared the managers at Walmart. On the other hand, Aldi attracts customers that other supermarket chains need help to capture. The stores are all strategically located in working-class and minority neighborhoods. They also market to senior citizens who have limited but steady income.
The chain is well-positioned to profit from America’s growing income inequality and industrial decline.
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Aldi’s History
The company began its operations in 1913 in Essen by Karl and Theo’s mother in 1913 in Essen. Forty years later, her sons Karl and Theo took over the business and expanded it to four stores throughout Germany. The company changed its name from Albrecht Discount to ALDI. In the mid-1960s, the company was split in half because of a disagreement on whether or not it should sell cigarettes.
The two stores were now known as ALDI Nord and ALDI Sud. Aldi Sud is a chain that does not sell cigarettes and has recently expanded into the US. Aldi Nord has also been expanding overseas. So you’ve likely walked into an ALDI Sud store in the US rather than an ALDI Nord store.
In 1993, the two brothers retired as CEO, and the control of Aldi Sud was passed to the Siepmann Foundation, and Aldi Nord was passed to the Markus Foundation.
Aldi Sud operates the brand Aldi in the USA, while Aldi Nord operates Traders Joe’s. Despite the company being split between two brothers, their operating model is similar. The company focuses its selection on a lean model of private-label brands.
They also focus on offering customers discounts yearly instead of seasonal discounts. The company also pays its employees well, which has caused employee efficiency to increase, and the company also enjoys the benefits of a relatively lower employee turnover.
Aldi Saves Money
All Aldis products are sold in original containers, saving employees time and money. This also prevents the company from spending on branded shelves. Instead, Aldi’s owners devised a thrifty mechanism where they only stock fast-moving and perishable items at their stores. They also only operate during peak business hours, which helps them significantly in reducing business costs.
The company does not sell products from big brands; rather, they mostly stock private label brands that they believe give a high value to their clients at a fraction of the cost. This allows the company to negotiate prices with vendors and cut out on intermediaries and overhead marketing costs.
Aldi is also a brand that is increasingly focused on sustainability. It leads the sustainability movement in the retail sector, making many environmentally aware consumers shop from them. The brand donates its extra food to poverty-stricken areas, has adapted low-energy lighting for most of its freezing units, and incentivizes customers to collect and deposit cardboard, plastic wraps, and other reused items.
Instacart ($CART) TipRanks Stock Forecast Report 3/24
Aldi Stock Alternatives
1. Instacart (NASDAQ: CART)
If you want to invest in Aldi, you can invest in Instacart shares; their stock symbol is $CART. In addition, Instacart is responsible for the app that makes pickup and delivery a piece of cake.
If you’re shopping through the online Aldi option, you can bag some really good discounts.
2. Kroger (NYSE: KR)
America’s largest stand-alone grocer is not cheap but offers enormous value for its clients. Although Kroger is operational in 35 American states, the chain owns 35 production plants, 45 distribution centers, and 1585 supermarket fuel centers.
Kroger owns several of America’s best-known supermarket chains, including Ralph’s King Soopers, Fred Meyer, City Market, and Fry’s. In addition, Kroger is planning a project with the Ocado group, and they plan to open up ten customer fulfillment centers in the United States. These customer fulfillment centers are unique because they will use robots to pack and fulfill customer orders. They also plan to use contractors like Instacart to deliver groceries to customers’ homes.
The company has spread out massively in the past years and continues to grow. Their revenues alone grew by 6.25% in the third quarter of 2020. As a result, the company is an excellent option for investments because it is continually growing and using its investments.
3. Walmart (NYSE: WMT)
Walmart is the world’s largest retailer, which operates 12,000 stores in 26 countries. Many consider Walmart a value investment because Mr. Market paid \$114.36 for its shares in February.
The company has also exhibited a positive revenue growth rate of 5.25% in the third quarter of 2021.
Recently, the company has been focusing on repaying its long-term debts, which is always a good sign for a company.
Walmart also has enormous value because it can accumulate large amounts of cash. Their e-commerce sales have also been exploding lately.
Interestingly, Walmart has around a 7.5% stake in TikTok Global and uses the platform to stream ads for its popular products. Walmart also has a great social media presence.
And the company also has enormous growth potential because of TikTok and e-commerce investments. Since there’s no Aldi stock, consider Walmart.
4. Costco (NASDAQ: COST)
Costco is a unique wholesaler, and the model has succeeded in America. To shop at Costco, you need to buy an annual membership; more than 100 billion people worldwide had Costco memberships in 2020 because of the brand’s reputation for unbelievably low prices and high value.
Costco has also been enjoying a perpetually growing membership base. The company has a business model similar to Aldi, whose stores are minimal and focus more on selling high-quality products at unbelievably low prices.
The company also does not use traditional advertising mediums, a highly similar strategy to ALDI. Instead, it only sends advertisements to its members, and its customers are loyal. Therefore, it is an excellent value stock that you can put your money in as an investor.
Final Thoughts: Aldi Stock
So you can’t buy Aldi stocks, and the possibility of them offering an IPO anytime soon seems very meek; however, one can never predict the future, and there might be a chance for us to invest in Aldi in the coming years. In the meantime, there are a couple of similar or alternative investments that you could make instead of Aldi.
What makes Aldi so great is its sole focus on delivering great products and services. The company does not focus on making as much money as possible, and its business model has worked quite well for them. Many other stores would happily take you as their investor or shareholder until Aldi changes its mind.
Frequently Asked Questions
Aldi is not publicly traded. You aren't able to purchase their stock. Kroger (KR), Costco (COST), and Walmart (WMT) are grocery store stocks that traders can purchase.
Aldi doesn't have a stock to buy because they are not a publicly traded company.
Aldi is a privately held company. Therefore they do not have stock to purchase.
