Germany hit by global economic slowdown
Handelsblatt is reporting that, for the first time in the company’s history, revenues are down at Aldi, the formidable grocery chain that chased Wal-Mart out of Germany. That’s pretty amazing.
The company that made its founders, Karl and Theo Albrecht, the richest people in Germany is losing revenue. If that’s not a sign that economic distress has moved to ‘Core Europe,’ I don’t know what is. Whether this 1.5% fall in 2007 revenue versus 2006 is due to competition in the German market or a slowing economy remains to be seen.
Obvious signs of economic distress are most evident in the US, Ireland, the UK and Spain, where property bubbles have burst. However, we should be watching Germany closely to see whether this malaise is spreading. Aldi could be considered the canary in the coalmine.
Aldi verliert erstmals Umsatz in Deutschland, Handelsblatt, 22 Jun 2008