A Secretive Family's Success: What Makes the Aldi Discount Empire Tick

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Following the death of Theo Albrecht, Aldi now faces the question which sooner or later confronts all family empires: Who will take over? And, how independent will the new leadership have to be in order to prepare the discount chain for the future?

Still, while Albrecht's passing was a tragedy for the family, the company itself sought to project confidence and stability. The death notice published in newspapers last week sounded more like a manifesto: "For several years, the company has been led by experienced Aldi managers who have made all operative decisions independent of Theo Albrecht and his family," it read.

The whole-page ad was likely the longest statement made by Aldi in its entire history. And the company will likely continue to be led by Hartmuth Wiesemann, who currently heads Aldi North and has been with the company since he was 14 years old. He was "to Theo Albrecht what Cardinal Ratzinger was to Pope John Paul II," says retail expert Roeb. Namely, his protégé and his able successor.

As such, there aren't likely to be any fundamental changes on the horizon. The problems of shrinking market share and dropping turnover are not yet serious and can be waited out. No one expects a revolution from below. "Have you ever heard of the worker bees revolting against the queen?" quips one insider.

'We Won't Forget'

Furthermore, the families no longer have nor want any say in business operations. Beyond Theo's widow Cäcilie and her son joining the board of trustees, there is no familial connection left. Dynastic feuds do not appear to be in the offing.

Still, Aldi South is considered to be the healthier of the two companies. The company is increasing its presence in both the US and Australia, two countries where discounters have not had a substantial presence. The goal of challenging market leaders like Wal-Mart remains ambitious. "Aldi would sooner collapse with dignity than deviate from its discounter principles," says discounter expert Queck.

Nevertheless, things are changing. Prior to Theo's death, Aldi North hired media advisors for the first time in the company's 60-year history. They were to lay the groundwork for a step-by-step opening up. Nothing has yet been decided for sure. And any opening would move slowly out of respect for the Aldi founders.

As recently as May, Theo Albrecht wrote a letter to a manager in which he called any kind of modernization into question. "I wanted to tell you that we won't forget our successful model."

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• Part 1: What Makes the Aldi Discount Empire Tick
• Part 2: A Family Shrouded in Secrecy
• Part 3: Aldi's Global Empire
• Part 4: The German Love of Cheap Food
• Part 5: Aldi's Critics
• Part 6: What the Future Holds