Aldi tries new strategy to grow bigger market share in Australia
Aldi is trialling a new style of retail store in Australia.
Over the past few months Aldi has opened four new shops which move away from the low-budget image. The new Aldi store concept is focused on expansion of fresh produce, improved product displays and new layouts which attempt to improve navigation.
Aldi is also aiming to cut average check-out waiting times at shops and is attempting to win over ‘ethical shoppers’ with environmental concerns being addressed for them in several new locations.The new stores include features such as LED lights with the company being committed to reduce energy consumption.
The changes follow customer feedback but Aldi is adamant that these will not affect the ability to offer low prices.
Aldi’s trial centres are located in Kallangur (QLD), Chisholm (ACT), McGraths Hill (NSW) and Highton (VIC).
A good decision for Aldi?
According to Professor Graeme Samuel AC of the Monash University Business School, “The move is a case of Aldi responding to consumers wanting not only low prices but good offerings.”
Professor Samuel told Australian Food News that “It’s an opportunity for them to expand their base and it’s good for consumers.”
Professor Samuel also expressed his view that Aldi has been successful in its Australian expansion as more local councils have allowed Aldi to operate from stand-alone sites which the company prefers over locations in shopping centres.
“Aldi prefers stand-alone sites as they not do have to pay the fees associated with being in a shopping complex,” Samuel said.
Other supermarkets following Aldi
Aldi is carrying more branded products in its new stores than previously when it had tried to sell most products under its house brands.
Interestingly, before Aldi, Professor Samuel points out that Coles, Woolworths and IGA’s home brand products were often disregarded due to their quality. Aldi brought in house-branded products with coloured packaging and better quality.
Aldi was the trend-setter for house-branding over the past decade according to Professor Samuel.
“Coles and Woolworths now offer a range of differing levels of in-house brands for similar products for different consumers to choose from.”