Co-founder of German low-cost retailer Aldi dies aged 88

ALDI CO-FOUNDER Theo Albrecht, who revolutionised low-cost retailing with his brother Karl, has died aged 88.

He leaves behind an estimated €16 billion fortune, making him Germany’s second-richest man and the world’s 16th-richest.

A recluse for four decades, only a handful of known photographs exist of Mr Albrecht, who died on Saturday and was buried yesterday in a private ceremony.

Born in Essen in 1922, he grew up working in his mother’s grocery store with his brother Karl, who was two years older.

After wartime service, and a spell in a prisoner-of-war camp, the brothers set up their own grocery store in Essen in 1948. The limited range of products, later a trademark of their no-frills retail concept, was more a product of post-war food shortages than long-term planning.

In 1961, the brothers decided to split their business into two, reportedly over a disagreement on whether or not to sell cigarettes in their stores, known as Albrecht Discount and later shortened to Aldi.

Karl called his cigarette-free company Aldi Süd (South) and traded in the southern half of Germany – this company would eventually expand into Ireland.

Theo headed Aldi Nord which, over the years, has stuck more rigorously to the founding principle of low cost through high volume and limited range – even after he stood down from day-to-day operations in 1993.

“As founder and pioneer in discount trade, Theo Albrecht influenced the fortunes of our company for decades,” said his company in a rare statement yesterday, noting his “far-reaching innovations in German retail”.

His hard-nosed negotiating skills came in handy in 1971 when, after being kidnapped, he reportedly negotiated down the ransom demand to a final DM 7 million.

After 17 days’ imprisonment, he was released unharmed. His kidnappers were caught two years later and given eight-year sentences. Mr Albrecht went to court and won the right to have the ransom written off as a tax-deductible business expense. A lover of golf, his only known extravagances were a collection of old typewriters and a Nice apartment.