Theo Albrecht, whose expansion of no-frills Aldi grocery stores made him Germany's third- richest man, has died at 88.
Mr Albrecht passed away in the western Germany city of Essen on July 24th, Aldi Nord said today in a faxed statement. Der Spiegel reported that the reclusive billionaire, who also owned Trader Joe's stores in the US, had been ill since a fall a year ago and was buried in a private ceremony early today.
"Aldi mourns a man who was humble toward his business partners as well as fellow employees and always held them in great respect," the company said in the statement.
The expansion of Aldi from Germany's industrial Ruhr Valley into a global retailer that generated 53 billion euros ($68.9 billion) in revenue last year made Theo and his brother, 90- year-old Karl, into two of the richest people in the world.
Their combined fortune topped $40 billion in 2010, according to Forbes, which ranked Theo and Karl 31st and 10th respectively. The brothers' key to success was their low-cost business model: 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.
Little is known about either brother, whose last photograph appeared in the 1980s, according to DerSpiegel . Theo lived in near-total seclusion, a circumstance compounded after he was kidnapped for 17-day stretch in 1971, the magazine reported.
The Albrecht family paid 7 million deutschemarks in ransom, which was handed over to the assailants by the bishop of Essen.
Theo was born in Essen in 1922. The brothers took over their parents' grocery store in 1946 after serving apprenticeships there, according to the statement. They opened more outlets, shortening 'Albrecht Discount' to Aldi.
As the business expanded, the brothers divided it into independent operations in 1960: Theo took over the north; Karl the south.
Aldi Nord controls stores in western Europe and Poland, with about 2,400 stores in Germany and 2,000 outside the country. Karl's half, Aldi Sued, has stores in regions including the US, UK and Australia.
Theo's retail empire was enhanced by the 1979 purchase of the discounter Trader Joe's in the US The chain, which has 342 outlets, generated sales of $8 billion last year. Theo clarified a plan for succession at Aldi Nord and the company's assets are held in protected trusts that will guarantee the further expansion of the company, Aldi said in the statement.
Reuters