Australia

ALDI to enter SA and WA markets

ALDI Australia last week announced that it has made the decision to enter into both the South Australian and West Australian markets, with plans to open a total of between 90 and 110 stores across both states.

The German low-cost supermarket chain first opened in Australia in 2001 and currently, its footprint is limited to the eastern seaboard of Australia, with more than 270 stores and five distribution centres in New South Wales, Victoria, Queensland and the ACT.

ALDI Australia Group Managing Director, Tom Daunt, said the company was delighted to be extending into new markets, adding that its expansion will provide more Australian customers across the country with the opportunity to experience "Smarter Shopping with ALDI's exclusive product range."

"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," Mr Daunt said.

ALDI anticipates that it will take a number of years to secure a warehouse site and sufficient store locations before it can commence operations and said that it is looking forward to working closely with state and local governments on the proposed rollout of its network.

"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," Mr Daunt said.

"We understand that offering customers real value is the most important thing," Mr Daunt said, citing the ACCC's grocery inquiry that confirmed ALDI's presence has had a significant downward effect on grocery prices, delivering savings to all consumers when there is an ALDI store in their neighbourhood.

South Australian Premier Jay Weatherill welcomed the company's decision to expand into South Australia, calling it great news for the state's retail sector and a vote of confidence in the strength of the South Australian economy.

Manufacturing, Innovation and Trade Minister Tom Kenyon said ALDI had described their future investment in South Australia as 'substantial', with plans for hundreds of millions of dollars in capital investment and a final roll-out of 40 to 50 stores across the state.

"This is the type of large-scale state-wide investment we want in SA to boost our retail sector, which already directly employs more than 92,000 with a turnover of more than $4.3 billion in the December quarter last year," Mr Kenyon said.

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