As two of the most popular supermarkets in Europe, there are a lot of first-time investors asking whether it is possible to buy shares in Lidl and Aldi, and if so, how?
It is not possible to buy shares in these two German supermarkets. So why can’t you buy shares in Lidi or Aldi? Well, it’s not because they are German, as some misinformed people seem to be suggesting, and is merely because they are privately owned and not publicly traded. Simply put, not all businesses are available on the stock markets because not all businesses want to open up to the public. As it happens, both of these two supermarkets are owned by families who like to stay out of the public eye.
Not all is lost though, so read on if you are seeking to invest your money in one of these two supermarkets.
Lidl Share Price: History
Lidl can be traced all of the way back to the 1930s in Germany. It was founded as a wholesaler of groceries, offering bulk products for low prices. In the 1970s it had become a household name and in the decades that followed it expanded into other countries, including the United Kingdom, Greece and Spain. In the United Kingdom alone, where Lidl opened their first store in 1994, they now have over 600 stores and are creating more every year.
Aldi Stock Price: History
Aldi is a good few decades older than Lidl and was founded by Anna Albrecht in the town of Essen, Germany, in 1914. In the late 1940s her two sons took over and the brand expanded.
Aldi was innovative, and that’s what made it so popular. Back then grocery stores kept everything behind the counter and the staff at the store would help the customer to do their shop. When self-service stores did open (Aldi were not the first) they spent a lot of time stocking the shelves and restocking the shelves, and this wasted a lot of valuable time because they needed to pay people to do those jobs and pay others to work the counter.
Their suppliers used to deliver goods in the back, after which point the parcels would be opened and stocked on the shelves. The brothers realized that they could simply direct their suppliers to drop the products, still on their pallets, in the store, sticking on prices and allowing customers to dig through, doing their work for them. This allowed them to make huge savings, which they passed onto their customers.
By the 1950s Aldi had 4 locations and in the 1960s they expanded to over 200. In the 1970s they expanded into the United States and then in the decades that followed they moved into the United Kingdom, Ireland, Slovenia, Australia, Hungary and more countries, whilst also further developing the chain in their home country and across the United States.
What Does Aldi Mean?
As stated above, Aldi was opened by Anna Albrecht, but in the beginning it was actually known as Albrecht Discount. In the 1960s the two sons who had taken over the store shortened it to Aldi, using the first two letters of both Albrecht and Discount.
What Does Lidl Mean?
Lidl was the surname of a teacher, Ludwig Lidl, and store owner who part-owned Sudfruchte Grosshandel Lidl & Co. which would later be shortened to Lidl as the store changed and took on a new direction.
Investing in Aldi Stock / Buying Shares in Lidl
Although it is easy to think these two supermarkets are linked somehow, considering they were both founded within a few decades of each other, both have similar stores and similar practices and both come from Germany, there is no connection. They are direct competitors and see each other as more of a rival than they do stores like Sainsburys and Tesco.
As we stated above, there is no way that you can sink your money into one of these two supermarkets. You might want to, especially if you have been listening to the reports that suggest these two supermarkets are quickly becoming some of the most popular in Europe. In the United Kingdom alone, these two used to be seen as discount supermarkets and ones that few people shopped at. Nowadays, they are becoming more popular than the biggest supermarkets and many people are quickly understanding that cheap doesn’t mean low quality.
They might be publicly traded at some point, but as they are very successful as things stand, that seems unlikely. There is some ground for investing in companies that benefit from the success of these stores, such as the ones that make their products. This requires some careful research though and again, just because they are a big or successful company, does not mean they will be listed on any stock exchange.
Alternatives to Aldi Stock and Lidl Stock
The good thing about these two supermarkets is that they are inspiring change in other supermarkets, particular those in the United Kingdom. Morrisons is a prime example of this. They have remained as a mid-price supermarket for many years, but in light of the changes brought about by these German supermarkets, they are trying to become a discount supermarket. This progression is not slow either and they are almost already there.
This makes Morrisons a great supermarket to invest in, but you need to bide your time. They are traded on the London Stock Exchange and their price hasn’t really increased, but as they make big cuts, to both staff and locations, their share price will likely fall. Our suggestion is that you monitor these shares and try to get them at their lowest point, because in a few years we believe that this supermarket could be the biggest in the country, and one that competes directly with Aldi and Lidl, as opposed to Tesco, Sainsburys and others.
Other supermarkets should also be considered, but be weary of Tesco. they have lost a lot of investor money in the last few years and seem to be making mistake after mistake. They will likely fall before they increase, and if there is an increase in their future then it is unlikely to be a huge one. Sainsburys have for many years been a stable investment as far as supermarkets go, but recently they announced their first reduction in profits for a long time. As for Asda, they could be one of the more promising of the big supermarkets, but their changes are big enough for us and their value is very high, which is why our money is on Morrisons.