Aldi Australia has confirmed that it plans to expand its store portfolio into both the states of Western Australia and South Australia.
Increased competition for Coles and Woolworths
In Australia, Aldi trades over 280 stores which are focused around the eastern seaboard. Outlets are currently located in the Australian Capital Territory, New South Wales, Queensland and Victoria. However, the growing popularity of its stores has led to Group Managing Director, Tom Daunt, confirming the long awaited entry into Western and South Australia. Although it will take some time to secure a pipeline of sites in these states, this is a significant move by the rapidly growing retailer and one that will be closely watched by Coles and Woolworths.
Growing sophistication influencing behaviour
Aldi is increasingly flexing its operating model in the Australian market. Like in other countries around the world where it operates, the retailer is opening new stores but also adapting its in-store offer, as well as its ability to communicate great value to shoppers. Over the past few years the retailer has introduced more branded items to its ranges, increased promotional frequency, introduced stronger fresh food ranges, improved Australian sourcing and, more recently, started to deliver more effective seasonal marketing campaigns. Its increasing presence in the market is proving popular with shoppers and influencing stronger price promotions across the industry.
Potential for another 110 stores
Tom Daunt commented, 'The benefits associated with Aldi’s decision to enter South Australia and West Australia will be substantial, with hundreds of millions in capital investment, over 2,000 new permanent jobs and a final rollout of up to an additional 90 to 110 stores opening across both states. In the end, our success comes down to the loyalty of our customers and the dedication of our employees, and we look forward to building a loyal customer base in South and Western Australia.'
Last year we visited Aldi's city centre store in North Sydney, to better understand some of the great initiatives that the retailer is adopting in action - click here.