Theo Albrecht, German co-founder of Aldi discount grocery chain, dies at 88

BERLIN — Theo Albrecht, the secretive co-founder of Germany's worldwide discount supermarket chain Aldi, a co-owner of Trader Joe's in the United States and one of Europe's richest men, has died at age 88.

The retail machine that Mr. Albrecht built with his brother Karl has won over German consumers with their no-thrills but super-cheap offers, making billionaires of the two and spawning imitation "hard-discount" stores across Europe and elsewhere in the world.

The company said he died Saturday (July 24, 2010) in his home city of Essen, but gave no cause of death.

The German Retail Federation said the country had lost one of its greatest entrepreneurs.

"There are only a few people who have stamped their mark on an entire business sector of the economy. Theo Al­brecht achieved just that," the federation's managing director, Stefan Genth, said in a statement.

Mr. Albrecht and his elder brother Karl both served as German soldiers in World War II, then returned home to Essen and took over a grocery store their parents owned.

They flourished as the German economy, in shambles after the war, came back to life, and by 1950, they were already running 13 stores.

The first Aldi stores — which stands for "Albrecht Discount" — opened in the early 1960s under the motto: "Concentrating on the basics: a limited selection of goods for daily needs."

It was a formula that sold well: Aldi carries a limited selection of fastest-selling, nonperishable consumer items, a strategy that allowed them to increase order volume, cut handling costs and waste, and buy their goods at deep savings, which were passed on to the consumer.

Aldi now has more than 4,000 outlets in Germany and is expanding elsewhere, including in the United States. Aldi is known for its no-frills shopping environment, streamlined processes and a limited range of discount products.

The Albrecht brothers have regularly led lists of Germany's richest people.

Forbes magazine's 2010 list of the world's richest people estimated Theo Albrecht's fortune at $16.7 billion, making him one of the wealthiest people in Europe. Karl Albrecht, 90, is said to have an estimated wealth of $23.5 billion, making him No. 10 worldwide.

Mr. Albrecht is survived by his wife, Cilli, and his two sons, Theo and Berthold.